Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 07, 2019 | Jun. 30, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Ameresco, Inc. | ||
Entity Central Index Key | 1,488,139 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 250,154,040 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Common Stock, Shares Outstanding (in shares) | 28,300,506 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Common Stock, Shares Outstanding (in shares) | 18,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents (including amounts in VIEs of $1,255 and $444, respectively) | $ 61,397 | $ 24,262 |
Restricted cash (including amounts in VIEs of $156 and $155, respectively) | 16,880 | 15,751 |
Accounts receivable, net (including amounts in VIEs of $374 and $328, respectively) | 85,985 | 85,121 |
Accounts receivable retainage, net | 13,516 | 17,484 |
Costs and estimated earnings in excess of billings (including amounts in VIEs of $498 and $360, respectively) | 86,842 | 104,852 |
Inventory, net | 7,765 | 8,139 |
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $8, respectively) | 11,571 | 14,037 |
Income tax receivable | 5,296 | 6,053 |
Project development costs | 21,717 | 11,379 |
Total current assets | 310,969 | 287,078 |
Federal ESPC receivable | 293,998 | 248,917 |
Property and equipment, net | 6,985 | 5,303 |
Energy assets, net (including amounts in VIEs of $122,641 and $55,712, respectively) | 459,952 | 356,443 |
Goodwill | 58,332 | 56,135 |
Intangible assets, net | 2,004 | 2,440 |
Other assets (including amounts in VIEs of $1,613 and $1,398, respectively) | 29,394 | 27,635 |
Total assets | 1,161,634 | 983,951 |
Current liabilities: | ||
Current portions of long-term debt and capital lease liabilities (including amounts in VIEs of $1,712 and $0, respectively) | 26,890 | 22,375 |
Accounts payable (including amounts in VIEs of $234 and $764, respectively) | 134,330 | 135,881 |
Accrued expenses and other current liabilities (including amounts in VIEs of $4,233 and $149, respectively) | 35,947 | 23,260 |
Billings in excess of cost and estimated earnings | 24,363 | 19,871 |
Income taxes payable | 1,100 | 755 |
Total current liabilities | 222,630 | 202,142 |
Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees (including amounts in VIEs of $26,461 and $0, respectively) | 219,162 | 173,237 |
Federal ESPC liabilities | 288,047 | 235,088 |
Deferred income taxes, net | 4,352 | 584 |
Deferred grant income | 6,637 | 7,188 |
Other liabilities (including amounts in VIEs of $2,131 and $0, respectively) | 29,212 | 18,754 |
Commitments and contingencies (Note 14) | ||
Redeemable non-controlling interests | 14,719 | 10,338 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2018 and 2017 | 0 | 0 |
Additional paid-in capital | 124,651 | 116,196 |
Retained earnings | 269,806 | 235,844 |
Accumulated other comprehensive loss, net of income taxes | (5,949) | (5,626) |
Less - treasury stock, at cost, 2,091,040 shares at December 31, 2018, and 1,873,266 shares at December 31, 2017 | (11,638) | (9,799) |
Total stockholders’ equity | 376,875 | 336,620 |
Total liabilities, redeemable non-controlling interests and stockholders’ equity | 1,161,634 | 983,951 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 3 | 3 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents (including amounts in VIEs of $1,255 and $444, respectively) | $ 61,397 | $ 24,262 |
Restricted cash (including amounts in VIEs of $156 and $155, respectively) | 16,880 | 15,751 |
Accounts receivable, net (including amounts in VIEs of $374 and $328, respectively) | 85,985 | 85,121 |
Costs and estimated earnings in excess of billings (including amounts in VIEs of $498 and $360, respectively) | 86,842 | 104,852 |
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $8, respectively) | 11,571 | 14,037 |
Energy assets, net (including amounts in VIEs of $122,641 and $55,712, respectively) | 459,952 | 356,443 |
Other assets (including amounts in VIEs of $1,613 and $1,398, respectively) | 29,394 | 27,635 |
Current portions of long-term debt and capital lease liabilities (including amounts in VIEs of $1,712 and $0, respectively) | 26,890 | 22,375 |
Accounts payable (including amounts in VIEs of $234 and $764, respectively) | 134,330 | 135,881 |
Accrued expenses and other current liabilities (including amounts in VIEs of $4,233 and $149, respectively) | 35,947 | 23,260 |
Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees (including amounts in VIEs of $26,461 and $0, respectively) | 219,162 | 173,237 |
Other liabilities (including amounts in VIEs of $2,131 and $0, respectively) | $ 29,212 | $ 18,754 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 2,091,040 | 1,873,266 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 30,366,546 | 29,406,315 |
Common stock, shares outstanding (in shares) | 28,275,506 | 27,533,049 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 144,000,000 | 144,000,000 |
Common stock, shares issued (in shares) | 18,000,000 | 18,000,000 |
Common stock, shares outstanding (in shares) | 18,000,000 | 18,000,000 |
Variable Interest Entity | ||
Cash and cash equivalents (including amounts in VIEs of $1,255 and $444, respectively) | $ 1,255 | $ 444 |
Restricted cash (including amounts in VIEs of $156 and $155, respectively) | 156 | 155 |
Accounts receivable, net (including amounts in VIEs of $374 and $328, respectively) | 374 | 328 |
Costs and estimated earnings in excess of billings (including amounts in VIEs of $498 and $360, respectively) | 498 | 360 |
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $8, respectively) | 190 | 8 |
Energy assets, net (including amounts in VIEs of $122,641 and $55,712, respectively) | 122,641 | 55,712 |
Other assets (including amounts in VIEs of $1,613 and $1,398, respectively) | 1,613 | 1,398 |
Current portions of long-term debt and capital lease liabilities (including amounts in VIEs of $1,712 and $0, respectively) | 1,712 | 0 |
Accounts payable (including amounts in VIEs of $234 and $764, respectively) | 234 | 764 |
Accrued expenses and other current liabilities (including amounts in VIEs of $4,233 and $149, respectively) | 4,233 | 149 |
Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees (including amounts in VIEs of $26,461 and $0, respectively) | 26,461 | 0 |
Other liabilities (including amounts in VIEs of $2,131 and $0, respectively) | $ 2,131 | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | $ 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | $ 787,138 | $ 717,152 | $ 651,227 |
Cost of revenues | 613,526 | 572,994 | 516,883 | ||||||||
Gross profit | 49,201 | 46,162 | 42,776 | 35,473 | 41,459 | 41,367 | 35,408 | 25,924 | 173,612 | 144,158 | 134,344 |
Selling, general and administrative expenses | 114,513 | 107,570 | 110,568 | ||||||||
Operating income | 59,099 | 36,588 | 23,776 | ||||||||
Other expenses, net (Note 16) | 16,709 | 7,871 | 7,409 | ||||||||
Income before (benefit) provision for income taxes | 42,390 | 28,717 | 16,367 | ||||||||
Income tax (benefit) provision | 4,813 | (4,791) | 4,370 | ||||||||
Net income | 37,577 | 33,508 | 11,997 | ||||||||
Net loss attributable to redeemable non-controlling interest | 407 | 3,983 | 35 | ||||||||
Net income attributable to common shareholders | $ 11,593 | $ 10,701 | $ 8,702 | $ 6,988 | $ 23,811 | $ 8,493 | $ 5,831 | $ (644) | $ 37,984 | $ 37,491 | $ 12,032 |
Net income per share attributable to common shareholders: | |||||||||||
Basic (in usd per share) | $ 0.25 | $ 0.23 | $ 0.19 | $ 0.15 | $ 0.52 | $ 0.19 | $ 0.13 | $ (0.01) | $ 0.83 | $ 0.82 | $ 0.26 |
Diluted (in usd per share) | $ 0.24 | $ 0.23 | $ 0.19 | $ 0.15 | $ 0.52 | $ 0.19 | $ 0.13 | $ (0.01) | $ 0.81 | $ 0.82 | $ 0.26 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 46,114 | 45,854 | 45,470 | 45,373 | 45,537 | 45,524 | 45,463 | 45,514 | 45,729 | 45,509 | 46,409 |
Diluted (in shares) | 47,327 | 46,944 | 46,406 | 45,994 | 45,957 | 45,771 | 45,675 | 45,514 | 46,831 | 45,748 | 46,493 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 37,577 | $ 33,508 | $ 11,997 |
Other comprehensive income (loss): | |||
Unrealized (loss) gain from interest rate hedges, net of tax effect of $(12), $(35) and $(52), respectively | (73) | 310 | 506 |
Foreign currency translation adjustment | (250) | 655 | (1,869) |
Total other comprehensive income (loss) | (323) | 965 | (1,363) |
Comprehensive income | 37,254 | 34,473 | 10,634 |
Comprehensive loss attributable to redeemable non-controlling interest | 407 | 3,983 | 35 |
Comprehensive income attributable to common shareholders | $ 37,661 | $ 38,456 | $ 10,669 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized (loss) gain from interest rate hedges, tax effect | $ (12) | $ (35) | $ (52) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Redeemable Non-controlling Interests and Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Class A | Class ACommon Stock | Class B | Class BCommon Stock |
Redeemable non-controlling interests beginning balance at Dec. 31, 2015 | $ 490 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Contributions from redeemable non-controlling interests | 6,392 | ||||||||
Net (loss) income | (35) | ||||||||
Redeemable non-controlling interests ending balance at Dec. 31, 2016 | 6,847 | ||||||||
Beginning balance (in shares) at Dec. 31, 2015 | 0 | 28,684,392 | 18,000,000 | ||||||
Beginning balance at Dec. 31, 2015 | $ 287,409 | $ 110,311 | $ 182,321 | $ 0 | $ (5,228) | $ 3 | $ 2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options, net (in shares) | 321,000 | 320,892 | |||||||
Exercise of stock options, net | $ 1,054 | 1,054 | |||||||
Stock-based compensation expense, including excess tax benefits | 1,561 | 1,561 | |||||||
Open market purchase of common shares (in shares) | 1,298,418 | (1,298,418) | |||||||
Open market purchase of common shares | (6,387) | $ (6,387) | |||||||
Unrealized gain from interest rate hedge, net | 506 | 506 | |||||||
Foreign currency translation adjustment | (1,869) | (1,869) | |||||||
Contributions from redeemable non-controlling interests | 0 | ||||||||
Net (loss) income | 12,032 | 12,032 | |||||||
Ending balance (in shares) at Dec. 31, 2016 | 1,298,418 | 27,706,866 | 18,000,000 | ||||||
Ending balance at Dec. 31, 2016 | 294,306 | 112,926 | 194,353 | $ (6,387) | (6,591) | $ 3 | $ 2 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Contributions from redeemable non-controlling interests | 7,762 | ||||||||
Distributions to redeemable non-controlling interests | (288) | ||||||||
Net (loss) income | (3,983) | ||||||||
Redeemable non-controlling interests ending balance at Dec. 31, 2017 | $ 10,338 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options, net (in shares) | 401,000 | 401,031 | |||||||
Exercise of stock options, net | $ 1,977 | 1,977 | |||||||
Stock-based compensation expense, including excess tax benefits | $ 1,293 | 1,293 | |||||||
Open market purchase of common shares (in shares) | 575,000 | 574,848 | (574,848) | ||||||
Open market purchase of common shares | $ (3,412) | $ (3,412) | |||||||
Unrealized gain from interest rate hedge, net | 310 | 310 | |||||||
Foreign currency translation adjustment | 655 | 655 | |||||||
Net (loss) income | 37,491 | 37,491 | |||||||
Ending balance (in shares) at Dec. 31, 2017 | 1,873,266 | 27,533,049 | 27,533,049 | 18,000,000 | 18,000,000 | ||||
Ending balance at Dec. 31, 2017 | 336,620 | 116,196 | 235,844 | $ (9,799) | (5,626) | $ 3 | $ 2 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Contributions from redeemable non-controlling interests | 5,198 | ||||||||
Distributions to redeemable non-controlling interests | (410) | ||||||||
Net (loss) income | (407) | ||||||||
Redeemable non-controlling interests ending balance at Dec. 31, 2018 | $ 14,719 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options, net (in shares) | 909,000 | 908,851 | |||||||
Exercise of stock options, net | $ 6,696 | ||||||||
Stock-based compensation expense, including excess tax benefits | $ 1,258 | 1,258 | |||||||
Open market purchase of common shares (in shares) | 218,000 | 217,774 | (217,774) | ||||||
Employee stock purchase plan, share issuance (in shares) | 51,380 | ||||||||
Employee stock purchase plan, share issuance (amount) | $ 501 | 501 | |||||||
Open market purchase of common shares | (1,839) | $ (1,839) | |||||||
Unrealized gain from interest rate hedge, net | 413 | 413 | |||||||
Foreign currency translation adjustment | (250) | (250) | |||||||
Net (loss) income | 37,984 | 37,984 | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 2,091,040 | 28,275,506 | 28,275,506 | 18,000,000 | 18,000,000 | ||||
Ending balance at Dec. 31, 2018 | $ 376,875 | $ 124,651 | $ 269,806 | $ (11,638) | $ (5,949) | $ 3 | $ 2 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Redeemable Non-controlling Interests and Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock-based compensation expense, excess tax benefits | $ 99 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 37,577 | $ 33,508 | $ 11,997 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation of energy assets | 27,305 | 21,648 | 19,377 |
Depreciation of property and equipment | 2,167 | 2,394 | 3,020 |
Amortization of deferred financing fees | 2,193 | 1,620 | 1,503 |
Amortization of intangible assets | 1,057 | 1,451 | 2,358 |
Provision for bad debts | 610 | 77 | 5,392 |
Loss (gain) on disposal / sale of assets | 298 | (103) | 0 |
Net gain from derivatives | (121) | (271) | (279) |
Stock-based compensation expense | 1,258 | 1,293 | 1,462 |
Deferred income taxes | 5,517 | (4,527) | 2,867 |
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | (99) |
Unrealized foreign exchange loss (gain) | 1,816 | (1,406) | 167 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 9,772 | 1,870 | (12,002) |
Accounts receivable retainage | 3,774 | 1,279 | 3,875 |
Federal ESPC receivable | (155,539) | (157,538) | (116,753) |
Inventory, net | 373 | 3,966 | 1,118 |
Costs and estimated earnings in excess of billings | 8,015 | (46,730) | 31,170 |
Prepaid expenses and other current assets | 6,763 | (2,471) | (98) |
Project development costs | (8,659) | (3,007) | 4,162 |
Other assets | (3,499) | 111 | (509) |
Accounts payable, accrued expenses and other current liabilities | 2,938 | 19,652 | (2,798) |
Billings in excess of cost and estimated earnings | 2,866 | (2,168) | (6,974) |
Other liabilities | (783) | (540) | (3,578) |
Income taxes payable | 1,101 | (5,678) | 1,988 |
Cash flows from operating activities | (53,201) | (135,570) | (52,634) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,943) | (2,851) | (2,807) |
Purchases of energy assets | (125,673) | (85,559) | (73,234) |
Proceeds from sale of assets of a business | 0 | 2,777 | 0 |
Acquisitions, net of cash received | (3,590) | (2,409) | (3,575) |
Cash flows from investing activities | (133,206) | (88,042) | (79,616) |
Cash flows from financing activities: | |||
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | 99 |
Payments of financing fees | (4,073) | (2,877) | (1,908) |
Proceeds from exercises of options and ESPP | 7,197 | 1,977 | 1,054 |
Repurchase of common stock | (1,839) | (3,412) | (6,387) |
Proceeds (payments) from senior secured credit facility, net | (900) | 12,547 | 3,822 |
Proceeds from long-term debt financings | 88,115 | 48,483 | 38,004 |
Proceeds from Federal ESPC projects | 158,237 | 165,013 | 90,039 |
Proceeds for energy assets from Federal ESPC | 4,236 | 3,993 | 0 |
Proceeds from sale-leaseback financings | 5,145 | 51,204 | 17,045 |
Contributions from redeemable non-controlling interests, net | 4,788 | 7,473 | 6,392 |
Payments on long-term debt | (36,395) | (54,164) | (14,014) |
Cash flows from financing activities | 224,511 | 230,237 | 134,146 |
Effect of exchange rate changes on cash | (295) | 654 | (422) |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net increase in cash and cash equivalents | 37,809 | 7,279 | 1,474 |
Cash, cash equivalents, and restricted cash, beginning of year | 60,105 | 52,826 | 51,352 |
Cash, cash equivalents, and restricted cash, end of year | 97,914 | 60,105 | 52,826 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 15,563 | 11,675 | 7,220 |
Cash paid for income taxes | 2,257 | 5,782 | 3,475 |
Non-cash Federal ESPC settlement | 101,557 | 66,921 | 79,075 |
Accrued purchases of energy assets | 15,005 | 7,335 | 19,506 |
Conversion of revolver to term loan | 25,000 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect [Abstract] | |||
Total cash and cash equivalents, and restricted cash | $ 60,105 | $ 52,826 | $ 51,352 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Ameresco, Inc. (including its subsidiaries, the “Company”) was organized as a Delaware corporation on April 25, 2000. The Company is a provider of energy efficiency solutions for facilities throughout North America and Europe. The Company provides solutions, both services and products, that enable customers to reduce their energy consumption, lower their operating and maintenance costs and realize environmental benefits. The Company’s comprehensive set of solutions includes upgrades to a facility’s energy infrastructure and the construction and operation of small-scale renewable energy plants. It also sells certain photovoltaic (“PV”) equipment worldwide. The Company operates in the United States, Canada and Europe. The Company is compensated through a variety of methods, including: 1) direct payments based on fee-for-services contracts (utilizing lump-sum or cost-plus pricing methodologies); 2) the sale of energy from the Company’s energy assets; and 3) direct payment for PV equipment and systems. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company has a controlling financial interest and four investment funds formed to fund the purchase and operation of solar energy systems, which are consolidated with the Company as variable interest entities (“VIE”). The Company uses a qualitative approach in assessing the consolidation requirement for VIEs. This approach focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For all periods presented, the Company has determined that it is the primary beneficiary in all of its operational VIEs. The Company evaluates its relationships with the VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Gains and losses from the translation of all foreign currency financial statements are recorded in accumulated other comprehensive loss, net, within stockholders’ equity. The Company prepares its consolidated financial statements in conformity with GAAP. Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates and assumptions used in these consolidated financial statements relate to management’s estimates of final construction contract profit in accordance with accounting for long-term contracts, allowance for doubtful accounts, inventory reserves, realization of project development costs, fair value of derivative financial instruments, accounting for business acquisitions, stock-based awards, impairment of goodwill and long-lived assets, asset retirement obligations (“AROs”), income taxes, self insurance reserves and potential liability in conjunction with certain commitments and contingencies. Actual results could differ from those estimates. The Company is self-insured for employee health insurance. The maximum exposure in fiscal year 2018 under the plan was $100 per covered participant, after which reinsurance takes effect. The liability for unpaid claims and associated expenses, including incurred but not reported claims, is determined by management and reflected in the Company’s consolidated balance sheets in accrued expenses and other current liabilities. The liability is calculated based on historical data, which considers both the frequency and settlement amount of claims. The Company’s estimated accrual for this liability could be different than its ultimate obligation if variables such as the frequency or amount of future claims differ significantly from management’s assumptions. 5 Cash and Cash Equivalents Cash and cash equivalents includes cash on deposit, overnight repurchase agreements and amounts invested in highly liquid money market funds. Cash equivalents consist of short term investments with original maturities of three months or less. The Company maintains accounts with financial institutions and the balances in such accounts, at times, exceed federally insured limits. This credit risk is divided among a number of financial institutions that management believes to be of high quality. The carrying amount of cash and cash equivalents approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 17. Restricted Cash Restricted cash consists of cash and cash equivalents held in an escrow account in association with construction draws for energy savings performance contracts (“ESPC”), construction of energy assets, operations and maintenance (“O&M”) reserve accounts, cash collateralized letters of credit as well as cash required under term loans to be maintained in debt service reserve accounts until all obligations have been indefeasibly paid in full. These accounts are primarily invested in highly liquid money market funds. The carrying amount of the cash and cash equivalents in these accounts approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 17. Restricted cash also includes funds held for clients, which represent assets that, based upon the Company’s intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds to third parties, primarily utility service providers, relating to the Company’s enterprise energy management services. As of December 31, 2018 and 2017 , the Company classified the non-current portion of restricted cash of $19,637 and $20,092 , respectively, in other assets on its consolidated balance sheets. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and management’s evaluation of outstanding accounts receivable. Bad debts are written off against the allowance when identified. Changes in the allowance for doubtful accounts are as follows: Year Ended December 31, 2018 2017 2016 Allowance for doubtful accounts, beginning of period $ 3,315 $ 7,836 $ 3,729 Charges to costs and expenses 610 81 4,332 Account write-offs and other (1,160 ) (4,602 ) (225 ) Allowance for doubtful accounts, end of period $ 2,765 $ 3,315 $ 7,836 During the year ended ended December 31, 2016, the Company reserved for certain assets related to a customer who declared bankruptcy. Of this amount, $2,394 was recorded as an allowance for doubtful accounts in accounts receivable, net. In addition, the Company recorded a $476 charge to write-off costs and estimated earnings in excess of billings and a $325 charge for project costs incurred during the first quarter of 2016. During 2017 a settlement was reached with the customer who declared bankruptcy, and the Company has no additional exposure for the remaining receivables. During the year ended December 31, 2016, the Company also reserved for certain assets in its Canada segment totaling $1,934 due to collectability concerns as a result of its previously disclosed restructuring efforts. This reserve included $1,655 for doubtful accounts in accounts receivable, net and $279 reserved against accounts receivable retainage, net. Accounts Receivable Retainage Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. For the year ended December 31, 2016, the Company recorded a reserve of $279 against the remaining accounts receivable retainage, net balance. As of December 31, 2018 and December 31, 2017 , no amounts were determined to be uncollectible. Inventory Inventories, which consist primarily of PV solar panels, batteries and related accessories, are stated at the lower of cost (“first-in, first-out” method) or net realizable value (determined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation). Provisions have been made to reduce the carrying value of inventory to the net realizable value. Prepaid Expenses Prepaid expenses consist primarily of short-term prepaid expenditures that will amortize within one year. Federal ESPC Receivable Federal ESPC receivable represents the amount to be paid by various federal government agencies for work performed and earned by the Company under specific ESPCs. The Company assigns certain of its rights to receive those payments to third-parties that provide construction and permanent financing for such contracts. Upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the assigned ESPC receivable from the government and corresponding ESPC liability are eliminated from the Company’s consolidated financial statements. Project Development Costs The Company capitalizes as project development costs only those costs incurred in connection with the development of energy projects, primarily direct labor, interest costs, outside contractor services, consulting fees, legal fees and travel, if incurred after a point in time where the realization of related revenue becomes probable. Project development costs incurred prior to the probable realization of revenue are expensed as incurred. The Company classifies as a current asset those project development efforts that are expected to proceed to construction activity in the twelve months that follow. The Company periodically reviews these balances and writes off any amounts where the realization of the related revenue is no longer probable. Project development costs of $639 and $2,355 were included in other long-term assets as of December 31, 2018 and 2017 , respectively. Property and Equipment Property and equipment consists primarily of office and computer equipment, and is recorded at cost. Major additions and improvements are capitalized as additions to the property and equipment accounts, while replacements, maintenance and repairs that do not improve or extend the life of the respective assets, are expensed as incurred. Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited Gains or losses on disposal of property and equipment are reflected in selling, general and administrative expenses in the consolidated statements of income (loss). Energy Assets Energy assets consist of costs of materials, direct labor, interest costs, outside contract services, deposits and project development costs incurred in connection with the construction of small-scale renewable energy plants that the Company owns. These amounts are capitalized and amortized to cost of revenues in the Company’s consolidated statements of income (loss) on a straight line basis over the lives of the related assets or the terms of the related contracts. The Company capitalizes interest costs relating to construction financing during the period of construction. Capitalized interest is included in energy assets, net, in the Company’s consolidated balance sheets. Capitalized interest is amortized to cost of revenues in the Company’s consolidated statements of income (loss) on a straight line basis over the useful life of the associated energy asset. The amount of interest capitalized for the years ended December 31, 2018 , 2017 and 2016 was $3,817 , $ 4,256 and $ 1,253 , respectively. Routine maintenance costs are expensed in the current year’s consolidated statements of income (loss) to the extent that they do not extend the life of the asset. Major maintenance, upgrades and overhauls are required for certain components of the Company’s assets. In these instances, the costs associated with these upgrades are capitalized and are depreciated over the shorter of the remaining life of the asset or the period until the next required major maintenance or overhaul. Included in energy assets are capital lease assets and accumulated depreciation of capital lease assets. For additional information see the Sale-Leaseback section below and Note 7. The Company evaluates its long-lived assets for impairment as events or changes in circumstances indicate the carrying value of these assets may not be fully recoverable. Examples of such triggering events applicable to the Company’s assets include a significant decrease in the market price of a long-lived asset or asset group or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. The Company evaluates recoverability of long-lived assets to be held and used by estimating the undiscounted future cash flows before interest associated with the expected uses and eventual disposition of those assets. When these comparisons indicate that the carrying value of those assets is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the amount that the carrying value exceeds the fair value. From time to time, the Company has applied for and received cash grant awards from the U.S. Treasury Department (the “Treasury”) under Section 1603 of the American Recovery and Reinvestment Act of 2009 (the “Act”). The Act authorized the Treasury to make payments to eligible persons who place in service qualifying renewable energy projects. The grants are paid in lieu of investment tax credits. All of the cash proceeds from the grants were used and recorded as a reduction in the cost basis of the applicable energy assets. If the Company disposes of the property, or the property ceases to qualify as specified energy property, within five years from the date the property is placed in service, then a prorated portion of the Section 1603 payment must be repaid. The Company last received a Section 1603 grant during the year ended December 31, 2014. No further Section 1603 grant payments are expected to be received as the program has expired. For tax purposes, the Section 1603 payments are not included in federal and certain state taxable income and the basis of the property is reduced by 50% of the payment received. Deferred grant income of $6,637 and $7,188 in the accompanying consolidated balance sheets at December 31, 2018 and 2017 , respectively, represents the benefit of the basis difference to be amortized to income tax expense over the life of the related property. The Company has historically received cash rebates from utility companies, which were accounted for as reductions in the book value of the related energy assets. The rebates were one-time payments based on the cost and efficiency of the installed units, and are earned upon installation and inspection by the utility. The payments are not related to, or subject to adjustment based on, future operating performance. The rebates were payable from the utility to the Company and are applied against the cost of construction, thereby reducing the book value of the corresponding energy assets and have been treated as an investing activity in the accompanying consolidated statements of cash flows. No rebates were received during the years ended December 31, 2018 , 2017 and 2016 . Deferred Financing Fees Deferred financing fees relate to the external costs incurred to obtain financing for the Company. Deferred financing fees are amortized over the respective term of the financing using the effective interest method, with the exception of the Company’s revolving credit facility and construction loans, as discussed in Note 8, for which deferred financing fees are amortized on a straight-line basis over the term of the agreement. Deferred financing fees are presented on the consolidated balance sheets as a reduction to long-term debt and capital lease liabilities. Goodwill and Intangible Assets The Company has classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) of companies acquired in purchase transactions. The Company has recorded intangible assets related to customer contracts, customer relationships, non-compete agreements, trade names and technology, each with defined useful lives. The Company assesses the impairment of goodwill and intangible assets that have indefinite lives on an annual basis (December 31st) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Goodwill is reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and projections of future results. T he Company estimates the reporting units fair value and compares it with the carrying value of the reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. Fair value is determined using both an income approach and a market approach. The estimates and assumptions used in the Company’s calculations include revenue growth rates, expense growth rates, expected capital expenditures to determine projected cash flows, expected tax rates and an estimated discount rate to determine present value of expected cash flows. These estimates are based on historical experiences, the Company’s projections of future operating activity and its weighted-average cost of capital. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the consolidated statements of income (loss). Judgment is required in determining whether an event has occurred that may impair the value of goodwill or identifiable intangible assets. Acquired intangible assets other than goodwill that are subject to amortization include customer contracts and customer relationships, as well as software/technology, trade names and non-compete agreements. The intangible assets are amortized over periods ranging from one to fifteen years from their respective acquisition dates. The Company evaluates its intangible assets for impairment consistent with, and part of, their long-lived assets evaluation, as discussed in Energy Assets above. See Notes 4 and 5 for additional disclosures. Other Assets Other assets consist primarily of notes and contracts receivable due to the Company from various customers and non-current restricted cash. Other assets also include, the fair value of derivatives determined to be assets, the non-current portion of project development costs, accounts receivable retainages, sale-leaseback deferred loss and deferred contract costs. Asset Retirement Obligations The Company recognizes a liability for the fair value of required asset retirement obligations (“AROs”) when such obligations are incurred. The Company records, as liabilities, the fair value of the AROs on a discounted basis when incurred and reasonably estimated which is typically at the time the assets are installed or operating. Over time, the liabilities increase due to the change in present value, and initial capitalized costs are depreciated over the useful life of the related assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement cost incurred is recognized as an operating gain or loss in the consolidated statements of income (loss). See Note 7 for additional disclosures on the Company’s AROs. Federal ESPC Liabilities Federal ESPC liabilities, for both projects and energy assets, represent the advances received from third-parties under agreements to finance certain ESPC projects with various federal government agencies. For projects related to the construction or installation of certain energy savings equipment or facilities developed for the government customer, upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the ESPC receivable from the government and corresponding ESPC liability is eliminated from the Company’s consolidated balance sheet. Until recourse to the Company ceases for the ESPC receivables transferred to the investor, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received. For small-scale energy assets developed for a government customer that the Company owns and operates, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received until the liability is eliminated from the Company’s consolidated balance sheet as contract payments assigned by the customer are transferred to the investor. Sale-Leaseback During the first quarter of 2015, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects. In September 2016, the Company amended this agreement to increase the investor’s commitment up to a maximum combined funding amount of $100,000 through June 30, 2017 on certain projects. In May 2017, the Company amended this agreement to extend the end date of the agreement to June 30, 2018. This agreement was not extended further and expired on June 30, 2018. Additionally, the Company sold and contemporaneously leased back one solar PV project to another investor, not a party to the master lease agreement, under a new agreement during the twelve months ended December 31, 2017. During August 2018, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects through August 2019 up to a maximum funding amount of $100,000 . During August 2018, the Company sold and contemporaneously leased back two solar PV projects. See below for a summary of solar PV project sales by fiscal year: Year Ended # Solar PV Projects Sold (actual #’s) Sale Price Deferred Gain Recorded Deferred Loss Recorded Capital Lease Asset/Liability Recorded Initial Lease Term (years) Minimum Lease Payment Maximum Lease Payment Year-ended December 31, 2016 6 $ 17,045 $ 906 $ 145 $ 8,830 20-25 $ 2 $ 397 Year-ended December 31, 2017 13 $ 51,204 $ 4,625 $ 1,204 $ 22,934 10-20 $ 4 $ 510 Year-ended December 31, 2018 2 $ 5,145 $ 574 $ — $ 2,625 20 $ 3 $ 144 As part of these agreements, the Company is a party to a master lease agreement that provides for the sale of solar PV projects to a third-party investor and the simultaneous leaseback of the projects, which the Company then operates and maintains, recognizing revenue through the sale of the electricity and solar renewable energy credits generated by these projects. In sale-leaseback arrangements, the Company first determines whether the solar PV project under the sale-leaseback arrangement is “integral equipment.” A solar PV project is determined to be integral equipment when the cost to remove the project from its existing location, including the shipping and reinstallation costs of the solar PV project at the new site, including any diminution in fair value, exceeds 10% of the fair value of the solar PV project at the time of its original installation. When the leaseback arrangement expires, the Company has the option to purchase the solar PV project for the then fair market value or, in certain circumstances, renew the lease for an extended term. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company not to be integral equipment as the cost to remove the project from its existing location would not exceed 10% of its original fair value. For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a capital lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be capital leases. For leasebacks classified as capital leases, the Company initially records a capital lease asset and capital lease obligation in its consolidated balance sheet equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For capital leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s consolidated balance sheet at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its consolidated balance sheet and amortizes the deferred amounts over the lease term in cost of revenues in its consolidated statements of income (loss). Net amortization expense in cost of revenues related to deferred gains and losses was $213 and $79 of net gains for the year ended December 31, 2018 and December 31, 2017, respectively. A summary of amounts related to sale leasebacks in the Company’s consolidated balance sheets is as follows: December 31, December 31, 2018 2017 Capital lease assets, net $ 38,263 $ 36,676 Deferred loss, short-term, net 115 118 Deferred loss, long-term, net 1,917 2,054 Total deferred loss $ 2,032 $ 2,172 Capital lease liabilities, short-term 4,956 4,157 Capital lease liabilities, long-term 28,407 30,712 Total capital lease liabilites $ 33,363 $ 34,869 Deferred gain, short-term, net 345 338 Deferred gain, long-term, net 5,808 5,835 Total deferred gain $ 6,153 $ 6,173 Other Liabilities Other liabilities consist primarily of deferred revenue related to multi-year operation and maintenance contracts which expire at various dates through 2033. Other liabilities also include the fair value of derivatives and the long term portion of sale-leaseback deferred gains. See Note 18 for additional disclosures. Revenue Recognition The Company derives revenues from energy efficiency and renewable energy products and services. Energy efficiency products and services include the design, engineering, and installation of equipment and other measures to improve the efficiency, and control the operation, of a facility’s energy infrastructure. Renewable energy products and services include the construction of small-scale plants that produce electricity, gas, heat or cooling from renewable sources of energy, the sale of such electricity, gas, heat or cooling from plants that the Company owns, and the sale and installation of solar energy products and systems. Below is a description of the Company’s primary lines of business. Projects - The Company’s principal service relates to energy efficiency projects, which entails the design, engineering and installation of, and assisting with the arranging of financing for an ever-increasing array of innovative technologies and techniques to improve the energy efficiency, and control the operation, of a building’s energy- and water- consuming systems. In certain projects, the Company also designs and constructs for a customer a central plant or cogeneration system providing power, heat and/or cooling to a building, or a small-scale plant that produces electricity, gas, heat or cooling from renewable sources of energy. Under Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) the Company recognizes revenue from the installation or construction of projects over time using the cost-based input method. The Company uses the total costs incurred on the the project relative to the total expected costs to satisfy the performance obligation. When the estimate on a contract indicates a loss, or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Operations & Maintenance (“O&M”) - After an energy efficiency or renewable energy project is completed, the Company often provides ongoing O&M services under a multi-year contract. These services include operating, maintaining and repairing facility energy systems such as boilers, chillers and building controls, as well as central power and other small-scale plants. For larger projects, the Company frequently maintains staff on-site to perform these services. Maintenance revenue is recognized using the input method to recognize revenue. In most cases, O&M fees are fixed annual fees. Because the Company is on-site to perform O&M services, the services are typically a distinct series of promises, and those services have the same pattern of transfer to the customer (i.e., evenly over time), the Company records the revenue on a straight-line basis. Some O&M service contract fees are billed on time expended. In those cases, revenue is recorded based on the time expended in that month. Energy Assets - The Company’s service offerings also includes the sale of electricity, processed renewable gas fuel, heat or cooling from the portfolio of assets that the Company owns and operates. The Company has constructed and is currently designing and constructing a wide range of renewable energy plants using landfill gas (“LFG”), wastewater treatment biogas, solar, biomass, other bio-derived fuels, wind and hydro sources of energy. Most of the Company’s renewable energy projects to date have involved the generation of electricity from solar PV and LFG or the sale of processed LFG. The Company purchases the LFG that otherwise would be combusted or vented, processes it, and either sells it or uses it in its energy plants. The Company has also designed and built, as well as owns, operates and maintains, plants that take biogas generated in the anaerobic digesters of wastewater treatment plants and turns it into renewable natural gas that is either used to generate energy on-site or that can be sold through the nation’s natural gas pipeline grid. Where the Company owns and operates energy producing assets, the Company typically enters into a long-term power purchase agreement (“PPA”) for the sale of the energy. Many of the Company’s energy assets also produce environmental attributes, including renewable energy credits (“RECs”) and Renewable Identification Numbers (“RINs”). In most cases, the Company sells these attributes under separate agreements with third parties other than the PPA customer. The Company recognizes revenues from the sale and delivery of the energy output from renewable energy plants, over time as produced and delivered to the customer, in accordance with specific PPA contract terms. Environmental attributes revenue is recognized at a point in time, when the environmental attributes are transferred to the customer in accordance with the transfer protocols of the environmental attributes market that the Company operates in. In those cases where environmental attributes are sold to the same customer as the energy output, the Company records revenue monthly for both the energy output and the environmental attribute output, as generated and delivered to the customer. The Company has determined that certain power purchase agreements contain a lease component in accordance with Accounting Standards Codification (“ASC”) 840, leases. The Company recognized $7,238 , $3,409 and $3,162 of operating lease revenue under these agreements during the years ended December 31, 2018, 2017 and 2016, respectively. Other - The Company’s service and product offerings also include integrated-PV and consulting and enterprise energy management services. The Company recognizes revenues from delivery of engineering, consulting services and enterprise energy management services over time. For the sale of solar materials, revenue is recognized at a point in time when the Company has transferred physical control of the asset to the customer upon shipment. To the extent a contract is deemed to have multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. Billings in excess of co |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Adoption On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, (Topic 606) using the modified retrospective method applied to those contracts which were not completed as of December 31, 2017. Results for reporting periods beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a net decrease to beginning retained earnings of $4,454 on January 1, 2018 due to the cumulative impact of adopting Topic 606, as detailed below. January 1, 2018 As Reported 606 Adjustments Adjusted Balances Assets: Costs and estimated earnings in excess of billings 104,852 $ (9,194 ) $ 95,658 Prepaid expenses and other current assets 14,037 4,343 18,380 Deferred income taxes, net — 1,003 1,003 Liabilities: Accrued expenses and other current liabilities 23,260 1,190 24,450 Deferred income taxes, net 584 (584 ) — Shareholders' Equity: Retained earnings 235,844 (4,454 ) 231,390 In accordance with Topic 606, the disclosure of the impact of adoption to the Company’s consolidated statements of income (loss) and balance sheets was as follows: Impact of changes in accounting policies 12/31/2018 As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Revenues $ 787,138 $ 784,316 $ 2,822 Cost of revenues 613,526 610,229 3,297 Gross profit 173,612 174,087 (475 ) Operating expenses: Selling, general and administrative expenses 114,513 114,513 — Operating income 59,099 59,574 (475 ) Other expenses, net 16,709 16,709 — Income before provision for income taxes 42,390 42,865 (475 ) Income tax provision 4,813 4,998 (185 ) Net income 37,577 37,867 (290 ) Net income attributable to redeemable non-controlling interests 407 407 — Net income attributable to common shareholders $ 37,984 $ 38,274 $ (290 ) Basic income per share $ 0.83 $ 0.84 $ (0.01 ) Diluted income per share $ 0.81 $ 0.82 $ (0.01 ) December 31, 2018 As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Assets: Costs and estimated earnings in excess of billings $ 86,842 $ 93,214 $ (6,372 ) Prepaid expenses and other current assets 11,571 10,644 927 Liabilities: Accrued expenses and other current liabilities 35,947 34,877 1,070 Deferred income taxes, net 4,352 6,123 (1,771 ) Shareholders' Equity: Retained earnings 269,806 274,550 (4,744 ) The impact in revenue recognition due to the adoption of Topic 606 is primarily from the timing of revenue recognition for uninstalled materials, amortization of contract acquisition costs over the contract term, and timing of revenue recognition from renewable energy credits. See Note 2 for a summary of the Company’s significant policies for revenue recognition. Disaggregation of Revenue The following table provides information about disaggregated revenue by line of business, reportable segments, and geographical region for the year ended December 31, 2018 . US Regions U.S. Federal Canada Non-Solar DG All Other Total Line of Business Year ended December 31, 2018 Project revenue $ 296,226 $ 202,286 $ 29,571 $ 4,550 $ 12,420 $ 545,053 O&M revenue 17,814 39,250 37 8,135 — 65,236 Energy assets 18,442 4,062 2,604 69,599 1,069 95,776 Other 1,862 711 6,770 371 71,359 81,073 Total revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 Geographical Regions Year ended December 31, 2018 United States $ 334,344 $ 246,309 $ 2,557 $ 82,655 $ 68,883 $ 734,748 Canada — — 36,425 — 303 36,728 Other — — — — 15,662 15,662 Total revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: January 1, 2018 December 31, 2018 Accounts receivable, net $ 85,121 $ 85,985 Accounts receivable retainage, net 17,484 13,516 Contract Assets: Costs and estimated earnings in excess of billings 95,658 86,842 Contract Liabilities: Billings in excess of cost and estimated earnings 27,248 30,706 Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. Unbilled revenue, presented as costs and estimated earnings in excess of billings, represent amounts earned and billable that were not invoiced at the end of the fiscal period. Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights to consideration are generally unconditional at the time its performance obligations are satisfied. At the inception of a contract, the Company expects the period between when it satisfies its performance obligations, and when the customer pays for the services, will be one year or less. As such, the Company has elected to apply the practical expedient which allows the Company to not adjust the promised amount of consideration for the effects of a significant financing component, when a financing component is present. When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs incurred and advance payments received on project contracts. As of December 31, 2018 , the Company classified $6,342 as a non-current liability, included in other liabilities on the consolidated balance sheets, for those performance obligations expected to be completed beyond the next twelve months. The decrease in contract assets for the year ended December 31, 2018 was primarily due to billings of approximately $510,470 , offset in part by revenue recognized of $485,143 . The change in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, exceeding reductions from recognition of revenue as performance obligations were satisfied. For the year ended December 31, 2018 , the Company recognized revenue of $95,318 , and billed customers $80,007 , that was previously included in the beginning balance of contract liabilities. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments. Contracts are often modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods or services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis. The Company elected to utilize the modified retrospective transition practical expedient which allows the Company to evaluate the impact of contract modifications as of the adoption date rather than evaluating the impact of the modifications at the time they occurred prior to the adoption date. Performance obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. Performance obligations are satisfied as of a point in time or over time and are supported by contracts with customers. For most of the Company’s contracts, there are multiple promises of goods or services. Typically, the Company provides a significant service of integrating a complex set of tasks and components such as design, engineering, construction management, and equipment procurement for a project contract. The bundle of goods and services are provided to deliver one output for which the customer has contracted. In these cases, the Company considers the bundle of goods and services to be a single performance obligation. The Company may also promise to provide distinct goods or services within a contract, such as a project contract for installation of energy conservation measures and post-installation O&M services. In these cases the Company separates the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Backlog - The Company’s remaining performance obligations (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments and the backlog may fluctuate with currency movements. In addition, our customers have the right, under some circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. At December 31, 2018 , the Company had backlog of approximately $1,660,800 . Approximately 25% , of our December 31, 2018 backlog is anticipated to be recognized as revenue in the next twelve months and the remaining, thereafter. The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed. Contract acquisition costs: In connection with the adoption of Topic 606, the Company is required to account for certain acquisition cost over the life of the contract, consisting primarily of commissions when paid. Commission costs are incurred commencing at contract signing. Commission costs are allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. As of January 1, 2018 and December 31, 2018, the Company capitalized $927 in commission costs related to contracts that were not completed. For contracts that have a duration of less than one year, the Company follows a practical expedient and expenses these costs when incurred. During the year ended December 31, 2018 , the amortization of commission costs related to contracts were not material and have been included in the accompanying consolidated statements of income (loss). Additionally, no impairment charges in connection with the Company’s commission costs or project development costs were recorded during the period ended December 31, 2018 . The Company analyzed the impact of adoption of Topic 606 on the Company’s project development costs and determined no change in the Company’s accounting policy was required . In the year ended December 31, 2018 , $15,672 of project development costs were recognized in the consolidated statement of income (loss) on projects that converted to customer contracts. |
Business Acquisitions and Relat
Business Acquisitions and Related Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisitions and Related Transactions | BUSINESS ACQUISITIONS AND RELATED TRANSACTIONS The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, Business Combinations . The purchase price for each has been allocated to the assets based on their estimated fair values at the date of each acquisition as set forth in the table below. The excess purchase price over the estimated fair value of the net assets, which are calculated using level 3 inputs per the fair value hierarchy as defined in Note 17, acquired has been recorded as goodwill. Intangible assets, if identified, have been recorded and are being amortized over periods ranging from one to fifteen years . See Note 5 for additional information. Determining the fair value of certain assets and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Certain amounts below are provisional based on our best estimates using information available as of the reporting date. The Company is waiting for information to become available to finalize its valuation of certain elements of these transactions. Specifically, the assigned values for energy assets, intangibles, and goodwill are provisional in nature and subject to change upon the completion of the final valuation of such elements. During the year ended December 31, 2018 , the Company completed an acquisition of certain assets of Washington, DC based mechanical, electrical, plumbing, and fire protection design company, JVP Engineers, P.C. The consideration consisted of $2,326 , of which, $1,901 has been paid to date. The remaining balance is attributed to a contingent consideration holdback related to the collection of certain receivables and will be be paid 15 months from the completion of the acquisition. No debt was assumed or cash acquired in the transaction. The pro-forma effects of this acquisition on the Company’s operations are not material. During the year ended December 31, 2018 , the Company had a measurement period adjustment of $197 , which was recorded as a reduction to goodwill. During the year ended December 31, 2018 , the Company completed an acquisition of certain assets of the Hawaii-based building science and design engineering consulting firm, Chelsea Group Limited. The consideration consisted of $1,691 of cash and potential contingent consideration of up to $2,000 based upon meeting certain future revenue targets over the next 5 years. The final purchase price is subject to a net working capital adjustment, dependent on the level of working capital at the acquisition date, that has not been finalized yet. The fair value of the contingent consideration was $555 as of the date of acquisition. No debt was assumed or cash acquired in the transaction. The pro-forma effects of this acquisition on the Company’s operations are not material. The value of the contingent consideration increased by $44 during the year ended December 31, 2018 to a ending balance of $599 as of December 31, 2018. See Note 17 for additional information on the of the contingent consideration. In January 2017, the Company acquired two solar PV projects currently under construction as well as associated construction loan agreements with a bank for use in providing non-recourse financing for these acquired solar PV projects currently under construction. The Company paid $2,409 to acquire the assets under construction, and assumed $5,635 of associated non-recourse financing. In December 2016, the Company acquired a solar PV project currently under construction as well as an associated construction loan agreement with a bank for use in providing non-recourse financing for this acquired solar PV project currently under construction. The Company paid $3,575 to acquire the asset under construction, and assumed $9,503 of associated non-recourse financing. A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective year is as follows: 2018 2017 2016 Accounts receivable $ 1,015 $ — $ — Prepaid expenses and other current assets 12 256 263 Property and equipment and energy assets — 7,788 12,815 Intangibles 680 — — Goodwill 2,845 — — Accounts payable 67 — — Purchase price $ 4,619 $ 8,044 $ 13,078 Total, net of cash received $ 4,619 $ 8,044 $ 13,078 Debt assumed $ — $ 5,635 $ 9,503 Total fair value of consideration $ 4,619 $ 2,409 $ 3,575 The results of the acquired assets since the dates of the acquisitions have been included in the Company’s operations as presented in the accompanying consolidated statements of income (loss), consolidated statements of comprehensive income (loss) and consolidated statements of cash flows. For the years ended December 31, 2018 , in order to expand its portfolio of energy assets, the Company acquired twelve solar projects from two separate developers and is under definitive agreement to acquire six additional solar projects. The Company has concluded that in accordance with ASC 805, Business Combinations, these acquisitions did not constitute a business as the assets acquired in each case could be considered a single asset or group of similar assets that made up substantially all of the fair market value of the acquisitions. See Note 7 for additional disclosures on these asset acquisitions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying value of goodwill attributable to each reportable segment are as follows: U.S. Regions U.S. Federal Canada Other Total Balance, December 31, 2016 $ 24,759 $ 3,375 $ 3,262 $ 26,580 $ 57,976 Sale of assets of a business — — — (2,639 ) (2,639 ) Currency effects — — 232 566 798 Balance, December 31, 2017 24,759 3,375 3,494 24,507 56,135 Goodwill acquired during the year 1,611 1,234 — — 2,845 Currency effects — — (277 ) (371 ) (648 ) Balance, December 31, 2018 $ 26,370 $ 4,609 $ 3,217 $ 24,136 $ 58,332 Accumulated Goodwill Impairment Balance, December 31, 2017 $ — $ — $ (1,016 ) $ — $ (1,016 ) Accumulated Goodwill Impairment Balance, December 31, 2018 $ — $ — $ (1,016 ) $ — $ (1,016 ) In accordance with ASC 350, goodwill was tested for impairment as of December 31, 2018 , 2017 and 2016 at the reporting unit level under the income approach which uses, in part, a discounted cash flow method and a peer-based, and a risk-adjusted weighted average cost of capital. No impairment was recorded in the December 31, 2018 , 2017 or 2016 assessments. Based on the Company’s goodwill impairment assessment, all of its reporting units with goodwill had estimated fair values as of December 31, 2018 that exceeded their carrying values by at least 20% . Based on the Company’s goodwill impairment assessment, all of its reporting units with goodwill had estimated fair values as of December 31, 2017 that exceeded their carrying values by at least 20% . However, during the course of the valuation analysis it was determined that although the fair value of the Company’s Canada reporting unit exceeded the carrying amount of this reporting unit, the carrying value of the reporting unit was negative as of December 31, 2017 . The Canada reporting unit had goodwill of $3,494 as of December 31, 2017. The gross carrying amount and accumulated amortization of intangible assets are as follows: As of December 31, 2018 2017 Gross Carrying Amount Customer contracts $ 7,818 $ 7,786 Customer relationships 12,082 11,863 Non-compete agreements 3,013 3,052 Technology 2,710 2,751 Trade names 541 546 26,164 25,998 Accumulated Amortization Customer contracts 7,668 7,786 Customer relationships 10,302 9,557 Non-compete agreements 3,013 3,048 Technology 2,651 2,642 Trade names 526 525 24,160 23,558 Intangible assets, net $ 2,004 $ 2,440 Amortization expense related to customer contracts is included in cost of revenues in the consolidated statements of income (loss). Amortization expense related to customer relationships, non-compete agreements, technology and trade names is included in selling, general and administrative expenses in the consolidated statements of income (loss). Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to eight years. All other intangible assets are amortized over periods ranging from approximately four to fifteen years, as defined by the nature of the respective intangible asset. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. The Company annually assesses whether a change in the life over which the Company’s assets are amortized is necessary or more frequently if events or circumstances warrant. No changes to useful lives were made during the years ended December 31, 2018 , 2017 and 2016 . Amortization expense for the years ended December 31, 2018 , 2017 and 2016 is as follows: Year Ended December 31, 2018 2017 2016 Customer contracts $ 30 $ 31 $ 184 Customer relationships 973 1,244 1,809 Non-compete agreements 3 42 116 Technology 47 128 238 Trade names 4 6 11 Total intangible amortization expense $ 1,057 $ 1,451 $ 2,358 Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years is as follows: Estimated Amortization Included in Selling, General and Administrative Expenses 2019 $ 844 2020 620 2021 247 2022 75 2023 66 Thereafter 152 $ 2,004 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following: December 31, 2018 2017 Furniture and office equipment $ 6,118 $ 5,846 Computer equipment and software costs 23,781 21,457 Leasehold improvements 3,990 3,255 Automobiles 1,373 1,181 Land 1,454 1,498 Property and equipment, gross 36,716 33,237 Less - accumulated depreciation (29,731 ) (27,934 ) Property and equipment, net $ 6,985 $ 5,303 Depreciation expense on property and equipment for the years ended December 31, 2018 , 2017 and 2016 was $2,167 , $2,394 and $3,020 , respectively, and is included in selling, general and administrative expenses in the accompanying consolidated statements of income (loss). |
Energy Assets
Energy Assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Energy Assets | ENERGY ASSETS Energy assets consist of the following: December 31, 2018 2017 Energy assets $ 619,708 $ 488,818 Less - accumulated depreciation and amortization (159,756 ) (132,375 ) Energy assets, net $ 459,952 $ 356,443 Included in energy assets are capital lease assets and accumulated depreciation of capital lease assets. Capital lease assets consist of the following: December 31, 2018 2017 Capital lease assets $ 42,402 $ 38,725 Less - accumulated depreciation and amortization (4,139 ) (2,049 ) Capital lease assets, net $ 38,263 $ 36,676 Depreciation and amortization expense on the above energy assets, net of deferred grant amortization, for the years ended December 31, 2018 , 2017 and 2016 was $27,305 , $21,648 and $19,377 , respectively, and is included in cost of revenues in the accompanying consolidated statements of income (loss). Included in these depreciation and amortization expense totals are depreciation and amortization expense on capital lease assets of $2,090 , $1,305 and $570 for the years ended December 31, 2018 , 2017 and 2016 , respectively. For the years ended December 31, 2018 , in order to expand its portfolio of energy assets and in connection with the adoption of ASU 2017-01, the Company acquired numerous energy projects, which did not constitute businesses under the new guidance. The Company acquired and closed on twelve solar projects, and entered into a definitive agreement to purchase six additional solar projects, from two developers for a total purchase price of $72,921 . The purchase price included deferred consideration of $5,437 that will be paid upon final completion of the respective projects and throughout 2019. As of December 31, 2018, the Company has paid $62,116 to the developers of the projects. As of December 31, 2018 , the Company had $897 in ARO assets recorded in project assets and $897 in ARO liabilities recorded in accrued expenses and other current liabilities and other liabilities. As of December 31, 2017 the Company had immaterial ARO obligations. The Company’s current ARO liabilities relate to the removal of equipment and pipelines at certain renewable gas projects and obligations related to the decommissioning of certain solar facilities. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt comprised the following: Commencement Date Maturity Date Acceleration Clause (2) Rate as of December 31, Balance as of December 31, 2018 2018 2017 Senior secured credit facility, interest at varying rates monthly in arrears June 2015 June 2020 NA 4.710 % $ 43,074 $ 49,986 Variable rate term loan payable in semi-annual installments January 2006 February 2021 Yes 5.047 % 936 1,220 Variable rate term loan payable in semi-annual installments January 2006 June 2024 Yes 4.797 % 7,426 8,295 Variable rate term loan payable in quarterly installments February 2009 December 2024 NA NA — 8,757 Term loan payable in quarterly installments March 2011 March 2021 Yes 7.250 % 1,464 2,218 Term loan payable in monthly installments October 2011 June 2028 NA 6.110 % 3,843 4,551 Variable rate term loan payable in quarterly installments October 2012 June 2020 NA 6.297 % 30,674 32,711 Variable rate term loan payable in quarterly installments September 2015 March 2023 NA 5.297 % 17,208 18,346 Term loan payable in quarterly installments August 2016 July 2031 NA 4.950 % 3,925 4,605 Term loan payable in quarterly installments March 2017 March 2028 NA 5.000 % 3,945 4,258 Term loan payable in monthly installments (3) April 2017 April 2027 NA 4.500 % 22,081 13,325 Term loan payable in quarterly installments April 2017 February 2034 NA 5.610 % 2,735 3,128 Variable rate term loan payable in quarterly installments June 2017 December 2027 NA 5.247 % 12,915 14,034 Variable rate term loan payable in quarterly installments February 2018 August 2022 Yes 10.297 % 21,475 — Term loan payable in quarterly installments June 2018 December 2038 Yes 5.150 % 30,069 — Variable rate term loan payable in semi-annual installments June 2018 June 2033 Yes 4.847 % 9,668 — Variable rate construction loan payable November 2016 June 2018 NA NA — 1,721 Variable rate term loan payable in monthly/quarterly installments October 2018 October 2029 Yes 5.020 % 9,072 — Capital leases (1) 33,363 35,013 253,873 202,168 Less - current maturities 26,890 22,375 Less - deferred financing fees 7,821 6,556 Long-term debt $ 219,162 $ 173,237 (1) Capital leases do not include approximately $25,305 in future interest payments (2) These agreements have acceleration causes that, in the event of default, as defined, the payee has the option to accelerate payment terms and make due the remaining principal and the required interest balance according to the agreement (3) As of December 31, 2018, this construction loan has an additional $2,742 commitment that could be drawn upon Aggregate maturities of long-term debt for the years ended December 31, are as follows: 2019 $ 26,890 2020 85,685 2021 18,573 2022 27,810 2023 27,518 Thereafter 69,955 Debt Discount (2,558 ) $ 253,873 Senior Secured Credit Facility - Revolver and Term Loan On June 30, 2015, the Company entered into a third amended and restated bank credit facility with two banks. The new credit facility replaces and extended the Company’s existing credit facility, which was scheduled to expire in accordance with its terms on June 30, 2016. The revolving credit facility and term loan mature on June 30, 2020, when all amounts will be due and payable in full. The Company expects to use the new credit facility for general corporate purposes of the Company and its subsidiaries, including permitted acquisitions, refinancing of existing indebtedness and working capital. In July 2016, the Company entered into an amendment to the third amended and restated bank credit facility that amended the requirement of the total funded debt to EBITDA ratio, as defined. In November 2016, the Company entered into an additional amendment to the third amended and restated bank credit facility that increased the amount of the term loan under the credit facility by approximately $20,000 to an aggregate of $30,000 and extends the maturity date of the term loan from June 30, 2018 to June 30, 2020. In June 2017, the Company entered into an additional amendment to the third amended and restated bank credit facility that increased the amount available to be drawn on the revolving credit facility from $60,000 to $75,000 . This amendment also amended the requirement of the total funded debt to EBITDA ratio, as defined, described below. In June 2018, the Company entered into an additional amendment to the Third Amended and Restated bank credit facility. The amendment added an additional lender, increased the aggregate amount of the revolving commitments from $75,000 to $85,000 through the existing June 30, 2020 end date, increased the term loan from $25,000 to $46,000 to reduce the outstanding revolving loan balances by the same amount and, for the period of June 30, 2018 through June 30, 2020, increased the Total Funded Debt to EBITDA covenant ratio, as defined, from a maximum of 2.75 to 3.00 . The total commitment under the amended credit facility (revolving credit, term loan and swing line) is $136,000 . The credit facility consists of a $85,000 revolving credit facility and a $46,000 term loan. The revolving credit facility may be increased by up to an additional $25,000 at the Company’s option if lenders are willing to provide such increased commitments, subject to certain conditions. Up to $20,000 of the revolving credit facility may be borrowed in Canadian dollars, Euros or pounds sterling. The Company is the sole borrower under the credit facility. The obligations under the credit facility are guaranteed by certain of the Company’s direct and indirect wholly owned domestic subsidiaries and are secured by a pledge of all of the Company’s and such subsidiary guarantors’ assets, other than the equity interests of certain subsidiaries and assets held in non-core subsidiaries (as defined in the agreement). At December 31, 2018 and 2017 , $41,500 and $22,500 , excluding debt discounts, was outstanding under the term loan, respectively. At December 31, 2018 and 2017 , $1,696 and $27,580 , excluding debt discounts, was outstanding under the revolving credit facility, respectively. At December 31, 2018 funds of $72,234 is available for borrowing under the revolving credit facility. At December 31, 2018, the Company had $11,070 in letters of credit outstanding. The interest rate for borrowings under the credit facility is based on, at the Company’s option, either (1) a base rate equal to a margin of 0.5% or 0.25% , depending on the Company’s ratio of Total Funded Debt to EBITDA (as defined in the agreement), over the highest of (a) the federal funds effective rate, plus 0.50% , (b) Bank of America’s prime rate and (c) a rate based on the London interbank deposit rate (“LIBOR”) plus 1.50% , or (2) the one-, two- three- or six-month LIBOR plus a margin of 2.00% or 1.75% , depending on the Company’s ratio of Total Funded Debt to EBITDA, as defined. A commitment fee of 0.375% is payable quarterly on the undrawn portion of the revolving credit facility. At December 31, 2018 , the interest rate for borrowings under the revolving credit facility was 4.52% and the weighted average interest rate for borrowings under the term loan was 4.72% . The revolving credit facility does not require amortization of principal. The term loan requires quarterly principal payments of $1,500 , with the balance due at maturity. All borrowings may be paid before maturity in whole or in part at the Company’s option without penalty or premium, other than reimbursement of any breakage and deployment costs in the case of LIBOR borrowings. The credit facility limits the Company’s and its subsidiaries’ ability to, among other things: incur additional indebtedness; incur liens or guarantee obligations; merge, liquidate or dispose of assets; make acquisitions or other investments; enter into hedging agreements; pay dividends and make other distributions and engage in transactions with affiliates, except in the ordinary course of business on an arms’ length basis. Under the credit facility, the Company and its subsidiaries may not invest cash or property in, or loan to, the Company’s non-core subsidiaries in aggregate amounts exceeding 49% of the Company’s consolidated stockholders’ equity. In addition, under the credit facility, the Company and its core subsidiaries must maintain the following financial covenants: • a ratio of total funded debt to EBITDA, as defined, of less than 3.0 to 1.0 as of the end of each fiscal quarter ending June 30, 2018 and thereafter; and • a debt service coverage ratio (as defined in the agreement) of at least 1.5 to 1.0. Any failure to comply with the financial or other covenants of the credit facility would not only prevent the Company from being able to borrow additional funds, but would constitute a default, permitting the lenders to, among other things, accelerate the amounts outstanding, including all accrued interest and unpaid fees, under the credit facility, to terminate the credit facility, and enforce liens against the collateral. The credit facility also includes several other customary events of default, including a change in control of the Company, permitting the lenders to accelerate the indebtedness, terminate the credit facility, and enforce liens against the collateral. For purposes of the Company’s senior secured facility: EBITDA, as defined, excludes the results of certain renewable energy projects that the Company owns and for which financing from others remains outstanding; total funded debt, as defined, includes amounts outstanding under both the term loan and revolver portions of the senior secured credit facility plus other indebtedness, but excludes non-recourse indebtedness of project company subsidiaries; and debt service, as defined, includes principal and interest payments on the indebtedness included in total funded debt other than principal payments on the revolver portion of the facility. February 2018 Term Loan In February 2018, the Company entered into a credit agreement for gross proceeds of $28,500 , with a bank for use in providing non-recourse financing for a new renewable natural gas energy asset at a rate of 7.5% above LIBOR. Principal and interest amounts are due in quarterly installments. The term loan matures on August 31, 2022 with all remaining unpaid amounts outstanding under the agreement due at that time. At December 31, 2018 , $21,475 , net of debt discount, was outstanding under the term loan. The interest rate at December 31, 2018 was 10.297% . June 2018 Term Loan In June 2018, the Company entered into a non-recourse term loan with a bank, with an original principal amount of $12,407 . In August 2018, the Company entered into a joinder agreement which increased the principal amount by an additional $19,252 , for a total principal amount of $31,659 . The loan bears interest at a fixed rate of 5.15% . The principal and interest payments are due in quarterly installments and the loan matures on December 31, 2038, with all remaining unpaid amounts outstanding under the agreement due at that time. These agreements contain interest make-whole provisions that the Company determined qualified as embedded derivatives that are required to be bifurcated and valued separately from the host contract. See Notes 8 and 9 for additional discussions. At December 31, 2018 , $30,069 was outstanding under the term loan, including debt discounts and the make-whole interest provision derivatives. June 2018 Variable Note In June 2018, the Company entered into a loan agreement for use in providing non-recourse financing for a solar PV project in operation. The loan agreement provides for a $10,000 term loan credit facility and bears interest at a variable rate, with interest payments due in semi-annual installments. The term loan matures on June 15, 2033, with all remaining unpaid amounts outstanding under the facility due at that time. At December 31, 2018 , $9,668 , net of debt discounts, was outstanding under the term loan. The variable interest rate for this loan at December 31, 2018 was 4.847% . October 2018 Term Loan In October 2018, the Company entered into a non-recourse term loan with a bank, with an original principal amount of $9,200 . The loan bears interest at a rate of 2.5% above LIBOR. Interest is due monthly in the first year of the loan and then principal and interest payments are due in quarterly installments. the loan matures on October 18, 2029, with all remaining unpaid amounts outstanding under the agreement due at that time. At December 31, 2018 , $9,072 was outstanding under the term loan, including debt discounts. The Company’s project financing facilities contain various financial and other covenant requirements which include debt service coverage ratios and total funded debt to EBITDA, as defined. Any failure to comply with the financial or other covenants of the Company’s projects financings would result in inability to distribute funds to from the wholly-owned subsidiary to the Company or constitute an event of default in which the lenders may have the ability to accelerate the amounts outstanding, including all accrued interest and unpaid fees. As of December 31, 2018, the Company was not in compliance with certain financial covenant requirements on two of the Company’s project financing debt facilities. The Company has received a waiver from one of the financial institutions to waive the failure as of December 31, 2018. The Company has not received a waiver from one financial institution in relation to the covenant failure on a project financing facility for which $3,978 was outstanding as of December 31, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income before income taxes are as follows: Year Ended December 31, 2018 2017 2016 Domestic $ 46,542 $ 29,792 $ 19,874 Foreign (4,152 ) (1,075 ) (3,507 ) Income before (benefit) provision for income taxes $ 42,390 $ 28,717 $ 16,367 The components of the (benefit) provision for income taxes are as follows: Year Ended December 31, 2018 2017 2016 Current: Federal $ (1,888 ) $ (1,055 ) $ 1,304 State 1,176 671 303 Foreign 30 161 (106 ) (682 ) (223 ) 1,501 Deferred: Federal 2,662 (6,683 ) 2,341 State 2,530 1,853 106 Foreign 303 262 422 5,495 (4,568 ) 2,869 $ 4,813 $ (4,791 ) $ 4,370 The Company’s deferred tax assets and liabilities result primarily from temporary differences between financial reporting and tax recognition of depreciation, energy efficiency and NOL carryforwards. Deferred tax assets and liabilities consist of the following: December 31, 2018 2017 Deferred tax assets: Compensation accruals $ 3,489 $ 3,042 Reserves 2,940 2,149 Other 127 — Net operating losses 10,010 10,099 Interest rate swaps 666 866 Energy efficiency 28,911 22,716 Interest limitation 3,292 — Deferred revenue 1,943 815 Gross deferred income tax assets 51,378 39,687 Valuation allowance (7,931 ) (7,534 ) Total deferred income tax assets $ 43,447 $ 32,153 Deferred tax liabilities: Depreciation $ (37,107 ) $ (24,178 ) Deferred effect of derivative liability and ASU 2016-09 adoption (475 ) — Canadian capital cost, allowance and amortization (1,974 ) (3,156 ) United Kingdom goodwill amortization (755 ) (802 ) Outside basis difference (7,488 ) (4,408 ) Other — (193 ) Total deferred income tax liabilities (47,799 ) (32,737 ) Deferred income tax liabilities, net $ (4,352 ) $ (584 ) The Company recorded a valuation allowance in the amount of $7,931 and $7,534 as of December 31, 2018 and 2017 , respectively, related to the following items: 1) The Company recorded a valuation allowance on a deferred tax asset relating to interest rate swaps in the amount of $184 and $401 as of December 31, 2018 and 2017 , respectively. The deferred tax asset represents a future capital loss which can only be recognized for income tax purposes to the extent of capital gain income. Although the Company anticipates sufficient future taxable income, it is more likely than not that it will not be of the appropriate character to allow for the recognition of the future capital loss. 2) As of December 31, 2018 and 2017 , the Company recorded a valuation allowance on a deferred tax asset relating to a foreign net operating loss in the amount of $7,500 and $6,871 , respectively. It is more likely than not that the Company will not generate sufficient taxable income at the foreign subsidiary level to utilize the net operating loss. 3) The Company recorded a valuation allowance on a deferred tax asset relating to a state net operating loss of $247 and $262 at one of its subsidiaries as of December 31, 2018 and 2017 , respectively. It is more likely than not that the Company will not generate sufficient taxable income at the subsidiary level to utilize the net operating loss. The provision for income taxes is based on the various rates set by federal and local authorities and is affected by permanent and temporary differences between financial accounting and tax reporting requirements. The following is a reconciliation of the effective tax rates: Year Ended December 31, 2018 2017 2016 Income before (benefit) provision for income taxes $ 42,390 $ 28,717 $ 16,367 Federal statutory tax expense $ 8,902 $ 10,048 $ 5,728 State income taxes, net of Federal benefit 3,071 1,584 678 Net state impact of deferred rate change 174 327 (110 ) Non deductible expenses 982 1,473 670 Impact of reserve for uncertain tax positions 879 42 (411 ) Stock-based compensation expense (441 ) 116 306 Energy efficiency preferences (8,636 ) (6,416 ) (4,130 ) Foreign items and rate differential (41 ) 139 516 Tax rate change — (13,948 ) — Valuation allowance 641 424 213 Miscellaneous (718 ) 1,420 910 $ 4,813 $ (4,791 ) $ 4,370 Effective tax rate: Federal statutory rate expense 21.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit 7.2 % 5.5 % 4.1 % Net state impact of deferred rate change 0.4 % 1.1 % (0.7 )% Non deductible expenses 2.3 % 5.1 % 4.1 % Impact of reserve for uncertain tax positions 2.1 % 0.1 % (2.5 )% Stock-based compensation expense (1.0 )% 0.4 % 1.9 % Energy efficiency preferences (20.4 )% (22.3 )% (25.2 )% Foreign items and rate differential (0.1 )% 0.5 % 3.2 % Tax rate change — % (48.6 )% — % Valuation allowance 1.5 % 1.5 % 1.3 % Miscellaneous (1.6 )% 4.9 % 5.5 % 11.4 % (16.7 )% 26.7 % A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Year Ended December 31, 2018 2017 Balance, beginning of year $ 600 $ 600 Additions for current year tax positions 300 Additions for prior year tax positions 900 — Settlements paid to tax authorities — — Reductions of prior year tax positions (200 ) — Balance, end of year $ 1,600 $ 600 At December 31, 2018 and 2017 , the Company had approximately $1,600 and $600 , respectively, of total gross unrecognized tax benefits. Of the total gross unrecognized tax benefits as of December 31, 2018 and 2017 , $705 and $80 , respectively, (both net of the federal benefit on state amounts) represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. At December 31, 2018 the Company had a federal net operating loss carryforwards of approximately $7,200 which has an indefinite life, state net operating loss carryforwards of approximately $23,340 , which will expire from 2018 through 2034 and an interest deduction carryforward of approximately $12,300 which has an indefinite life. At December 31, 2018 the Company had Canadian net operating loss carryforwards of approximately $25,000 , which will expire for tax years 2018 through 2028. The Company does not accrue U.S. tax for foreign earnings that it considers to be permanently reinvested outside the United States. Consequently, the Company has not provided any withholding tax on the unremitted earnings of its foreign subsidiaries. As of December 31, 2018 , the amount of earnings for which no repatriation tax has been provided is estimated to be $0 . At December 31, 2018 the company had a federal tax credit carryforward of approximately $28,300 which will expire at various times through 2038. The tax years 2015 through 2018 remain open to examination by major taxing jurisdictions. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes. The (decrease) increase included in tax expense for the years end December 31, 2018 , 2017 and 2016 were $(50) , $(60) and $(20) , respectively. The 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”) was signed into law on December 22, 2017and was effective for tax years beginning after December 31, 2017. The 2017 Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries as of December 31, 2017, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The 2017 Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property and created limitations on the deductibility and timing of interest deductions. The Company recorded a tax benefit for the impact of the 2017 Tax Act of approximately $13,900 , in its consolidated financial statements for the year ending December 31, 2017. This amount was primarily comprised of the remeasurement of federal net deferred tax liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate from 35% to 21%. The Tax 2017 Tax Act provided for a one-time deemed mandatory repatriation for post-1986 undistributed foreign subsidiary earnings and profits (“E&P”) through the year ended December 31, 2017. The Company’s initial estimate showed a deficit in foreign E&P and significant foreign taxes paid, which could be creditable against any tax resulting from the deemed mandatory repatriation. During 2018 the Company concluded that it’s foreign E&P were in a deficit position and the Company had no tax due in connection with the deemed mandatory repatriation. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Legislation. The Company recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. As of December 31, 2018 the Company has finalized it’s accounting for the 2017 Tax Act with no material adjustments and all the impacts are reflected in the consolidated financial statements as of that date. In February 2018, as part of the Bipartisan Budget Act, Code Section 179D Commercial Buildings Energy Efficiency Tax Deduction was retroactively extended through December 31, 2017. Because of the timing of the retroactive extension the impact was not reflected in the Company’s effective tax rate for 2017 but was included as a tax benefit in the Company’s tax provision for the year ending December 31, 2018. |
Investment Funds
Investment Funds | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investment Funds | INVESTMENT FUNDS In each of September 2015, June 2017, June 2018 and October 2018, the Company formed an investment fund with a different third party investor which granted the applicable investor ownership interests in the net assets of certain of the Company’s renewable energy project subsidiaries. The Company currently has four such investment funds each with a different third party investor. The Company consolidates the investment funds, and all inter-company balances and transactions between the Company and the investment funds are eliminated in its consolidated financial statements. The Company determined that the investment funds meet the definition of a VIE. The Company uses a qualitative approach in assessing the consolidation requirement for VIEs that focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has considered the provisions within the contractual arrangements that grant it power to manage and make decisions that affect the operation of these VIEs, including determining the solar energy systems and associated long term customer contracts to be sold or contributed to the VIEs, and installation, operation and maintenance of the solar energy systems. The Company considers that the rights granted to the other investors under the contractual arrangements are more protective in nature rather than participating rights. As such, the Company has determined it is the primary beneficiary of the VIEs for all periods presented. The Company evaluates its relationships with VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. Under the related agreements, cash distributions of income and other receipts by the funds, net of agreed-upon expenses and estimated expenses, tax benefits and detriments of income and loss, and tax benefits of tax credits, are assigned to the funds’ investor and Company’s subsidiaries as specified in contractual arrangements. Certain of these arrangements have call and put options to acquire the investor’s equity interest as specified in the contractual agreements. See Note 11 for additional information on the call and put options. A summary of amounts related to the investment funds in the Company’s consolidated balance sheets for the years ending December 31, 2018 and 2017 is as follows: 2018 (1) 2017 (1) Cash $ 1,255 $ 444 Restricted cash 156 155 Accounts receivable 374 328 Costs and estimated earnings in excess of billings 498 360 Prepaid expenses and other current assets 190 8 Energy assets, net 122,641 55,712 Other assets 1,613 1,398 Accounts payable 234 764 Accrued liabilities 4,146 74 Other liabilities — 75 Current portions of long-term 1,712 — Long-term debt, net of deferred financing costs 26,461 — Other long-term liabilities 2,131 — (1) The amounts in the above table are reflected in parenthetical references on the Company’s consolidated balance sheet. See the Company’s consolidated balance sheet for additional information. |
Non-Controlling Interests and E
Non-Controlling Interests and Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Non-Controlling Interests and Equity | NON-CONTROLLING INTERESTS AND EQUITY Redeemable Non-controlling Interest The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the third quarter of 2015 has the right, beginning on the fifth anniversary of the final funding of the variable rate construction and term loans due 2023 and extending for six months , to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary (the “Call Option”). The Company’s investment fund, which was formed in the third quarter of 2015, also includes a right, beginning on the sixth anniversary of the final funding and extending for one year , for the non-controlling interest holder to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund (the “Put Option”). The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the second quarter of 2017 has the right, beginning on the fifth anniversary of the final funding of the non-controlling interest holder and extending for six months , to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, a call option. The Company’s investment fund formed in the second quarter of 2017 also includes a right, beginning on the sixth anniversary of the final funding and extending for one year , for the non-controlling interest holder to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, a put option. The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the second quarter of 2018 has the right, beginning on the fifth anniversary of the investment fund’s final project being placed into service and extending for six months , to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, a call option. The Company’s investment fund formed in the second quarter of 2018 also includes a right, upon the expiration of the call option and extending for six months , for the non-controlling interest holder to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, a put option. The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the fourth quarter of 2018 has the right, beginning on the fifth anniversary on the last projects placed in-service date and extending for six months, to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, a call option. The Company’s investment fund formed in the fourth quarter of 2018 also includes a right, upon the expiration of the call option and extending for six months, for the non-controlling interest partner to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, a put option. The purchase price for two of the investment funds investors’ interests under the call options is equal to the fair market value of such interest at the time the option is exercised. The purchase price for the other two investment funds investor’s interests under the call options is equal to the greater of (i) the fair market value of such interests at the time the option is exercised or (ii) 7% of the investors’ contributed capital balance at the time the option is exercisable. The call options are exercisable beginning on the date that specified conditions are met for each respective fund. None of the call options are expected to become exercisable prior to 2021. The purchase price for two of the funds investors’ interests in the investment funds under the put options is the lessor of fair market value at the time the option is exercised and a specified amount, ranging from $659 - $917 . The purchase price for the other two of the fund investors’ interest in the investment funds under the put options is the sum of (i) the fair market value at the time the option is exercised, and (ii) the closing costs incurred by the investor in connection with the exercise of the put option. The put options for the investment funds are exercisable beginning on the date that specified conditions are met for each respective fund. The put options are not expected to become exercisable prior to 2022. Because the put options represents redemption features that are not solely within the control of the Company, the non-controlling interests in these funds are presented outside of permanent equity. Redeemable non-controlling interests are reported using the greater of their carrying value at each reporting date (which is impacted by attribution under the HLBV method) or their estimated redemption value in each reporting period. At both December 31, 2018 and 2017 , redeemable non-controlling interests were reported at their carrying value of $14,719 and $10,338 , respectively, as the carrying value at each reporting period was greater than the estimated redemption value. |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plan | STOCK INCENTIVE PLAN Common and Preferred Stock The Company has authorized 500,000 shares of Class A common stock, par value $0.0001 per share, 144,000 shares of Class B common stock, par value $0.0001 per share, and 5,000,000 shares of Preferred Stock, par value $0.0001 per share. The rights of the holders of the Company’s Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of the Company’s Class A common stock is entitled to one vote per share and is not convertible into any other shares of the Company’s capital stock. Each share of the Company’s Class B common stock is entitled to five votes per share, is convertible at any time into one share of Class A common stock at the option of the holder of such share and will automatically convert into one share of Class A common stock upon the occurrence of certain specified events, including a transfer of such shares (other than to such holder’s family members, descendants or certain affiliated persons or entities). The Company’s Board of Directors is authorized to fix the rights and terms for any series of preferred stock without additional shareholder approval. In 2000, the Company’s Board of Directors approved the Company’s 2000 Stock Incentive Plan (the “2000 Plan”) and between 2000 and 2010 authorized the Company to reserve a total of 28,500 shares of its then authorized common stock, par value $0.0001 per share (”Common Stock”) for issuance under the 2000 Plan. The 2000 Plan provided for the issuance of restricted stock grants, incentive stock options and nonqualified stock options. The Company will grant no further stock options or restricted awards under the 2000 Plan. The Company’s 2010 Stock Incentive Plan (the “2010 Plan”), was adopted by the Company’s Board of Directors in May 2010 and approved by its stockholders in June 2010. The 2010 Plan provides for the grant of incentive stock options, non-statutory stock options, performance-based stock options, restricted stock awards and other stock-based awards. Upon its effectiveness, 10,000 shares of the Company’s Class A common stock were reserved for issuance under the 2010 Plan. As of December 31, 2018 , the Company had granted options to purchase 3,887 shares of Class A common stock under the 2010 Plan. The Company’s 2017 Employee Stock Purchase Plan ("ESPP") permits eligible employees to purchase up to an aggregate of 200 shares of the Company’s Class A common stock. This plan commenced December 1, 2017 and was most recently amended on August 2018. The ESPP allows participants to purchase shares of common stock at a 5% discount from the fair market value of the stock as determined on specific dates at six-month intervals. During the year ended December 31, 2018, the Company issued 51 shares under the ESPP. As of December 31, 2018, the amount that had been withheld from employees for future purchases under the ESPP is immaterial. Stock Option Grants The Company has granted stock options to certain employees and directors, including its principal and controlling stockholder, under the 2000 Plan. The Company has also granted stock options to certain employees and directors under the 2010 Plan. At December 31, 2018 , 6,833 shares were available for grant under the 2010 Plan. The following table summarizes the collective activity under the 2000 Plan and the 2010 Plan: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 4,139 $ 7.740 Granted (1) 665 4.703 Exercised (321 ) 3.286 Forfeited (194 ) 8.154 Expired (318 ) 11.293 Outstanding at December 31, 2016 3,971 7.300 Granted (1) 390 6.061 Exercised (401 ) 4.935 Forfeited (41 ) 6.421 Expired (85 ) 10.157 Outstanding at December 31, 2017 3,834 7.367 Granted (1) 518 10.878 Exercised (909 ) 7.367 Forfeited (87 ) 4.726 Expired (51 ) 9.146 Outstanding at December 31, 2018 3,305 $ 8.050 4.99 $ 20,120 Options exercisable at December 31, 2018 1,926 $ 8.824 2.87 $ 10,237 Expected to vest at December 31, 2018 1,379 $ 6.970 7.94 $ 9,883 (1) Grants are related to the 2010 Plan. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2018 , 2017 and 2016 was $ 5,588 , $ 808 and $575 , respectively. During the year ended December 31, 2018 , a total of 909 shares were issued upon the exercise of options under the 2000 and 2010 Plan at an average price of $7.367 per share. Cash received from option exercises under all stock-based payment arrangements, net, for the years ended December 31, 2018 , 2017 and 2016 was $6,696 , $1,977 and $1,054 , respectively. Stock options issued under our 2000 Plan generally expire if not exercised within ten years after the grant date. Under the terms of our 2010 stock incentive plan, all options expire if not exercised within ten years after the grant date. During 2011, the Company began awarding options which typically vest over a five year period on an annual ratable basis. From time to time, the Company awards options providing for vesting over three years, with one-third vesting on each of the first three anniversaries of the grant date. During the year ending December 31, 2016, the Company also awarded options that vest based upon the achievement of specific performance goals. If the employee ceases to be employed by the Company for any reason before vested options have been exercised, the employee has 90 days to exercise options that have vested as of the date of such employee’s termination or they are forfeited. The Company uses the Black-Scholes option pricing model to determine the weighted-average fair value of options granted. The Company will recognize the compensation cost of stock-based awards on a straight-line basis over the vesting period of the award. The determination of the fair value of stock-based payment awards utilizing the Black-Scholes model is affected by the stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The following table sets forth the significant assumptions used in the model during 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Expected dividend yield —% —% —% Risk-free interest rate 2.71%-3.00% 1.96%-2.36% 1.16%-1.77% Expected volatility 43%-45% 46% 46%-49% Expected life 6.5 years 6.5 years 6.5-10 years The Company will continue to use judgment in evaluating the expected term and volatility related to the stock-based compensation on a prospective basis, and incorporating these factors into the Black-Scholes pricing model. The Company records forfeitures as they occur. Higher volatility and longer expected lives result in an increase to stock-based compensation expense determined at the date of grant. The weighted-average fair value of stock options granted during the years ended December 31, 2018 , 2017 and 2016 , under the Black-Scholes option pricing model was $5.20 , $ 2.93 and $2.60 , respectively, per share. For the years ended December 31, 2018 , 2017 and 2016 , the Company recorded stock-based compensation expense of approximately $1,258 , $1,293 , and $1,462 , respectively, in connection with stock-based payment awards. The compensation expense is allocated between cost of revenues and selling, general and administrative expenses in the accompanying consolidated statements of income (loss) based on the salaries and work assignments of the employees holding the options. As of December 31, 2018 , there was approximately $3,107 of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted-average period of 2.1 years. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS The Company has salary reduction/profit sharing plans under the provisions of Section 401(k) of the Internal Revenue Code. The plans cover all employees who have completed the minimum service requirement, as defined by the plans. The plans require the Company to contribute 100% of the first six percent of base compensation that a participant contributes to the plans. Matching contributions made by the Company were $4,957 , $ 3,832 and $4,600 for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company has a Group Personal Pension Plan (GPPP) for employees in the U.K., established in 2016, whereby eligible employees may contribute a portion of their compensation, subject to their age and other limitations established by HM Revenue & Customs. The plan requires the Company to contribute 100% of the first six percent of base compensation that a participant contributes to the plans. Matching contributions made by the Company were $161 , $344 and $202 for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company has a Registered Retirement Savings Plan (RRSP) for employees in Canada, whereby eligible employees may contribute a portion of their compensation. The plan requires the Company to contribute 100% of the first six percent of base compensation that a participant contributes to the plans. Matching contributions made by the Company were $351 , $774 and $307 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company from time to time issues letters of credit and performance bonds, with their third-party lenders, to provide collateral. The Company leases certain administrative offices. The leases are long-term noncancelable real estate lease agreements, expiring at various dates through fiscal 2025. The agreements generally provide for fixed minimum rental payments and the payment of utilities, real estate taxes, insurance and repairs. Rent and related expenses for the years ended December 31, 2018 , 2017 and 2016 was $6,463 , $6,362 and $6,147 , respectively. The Company’s estimated minimum future lease obligations under operating leases are as follows: Operating Leases Year ended December 31, 2019 $ 7,917 2020 7,265 2021 5,833 2022 5,357 2023 3,873 Thereafter 17,348 Total minimum lease payments $ 47,593 Legal Proceedings The Company also is involved in a variety of claims and other legal proceedings generally incidental to its normal business activities. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on its financial condition or results of operations. Commitments as a Result of Acquisitions During the the year ended December 31, 2018, the Company completed an acquisition which provided for a $425 cash consideration holdback contingent upon the Company collecting certain acquired receivables. The contingent consideration will be paid fifteen months from the completion of the acquisition and is recorded in the other liabilities line on the consolidated balance sheets. During the year ended December 31, 2018, the Company completed an acquisition which provided for a revenue earn-out contingent upon the acquired business meeting certain cumulative revenue targets over the next five years. The Company evaluated financial forecasts of the acquired business and concluded that the fair value of this earn-out was approximately $555 which was subsequently increased to $599 as of December 31, 2018 and is recorded in the other liabilities on the consolidated balance sheets. The contingent consideration will be paid yearly, commencing in 2020, if any of the cumulative revenue targets are achieved and the fair value of the earn-out will be periodically re-evaluated and adjustments will be recorded as needed. See Notes 4 and 17 for additional information. During the year ended December 31, 2018, the Company completed an acquisition of certain lease options, which provided for a payout if the lease option is exercised and if certain financial metrics are achieved. The Company evaluated the the acquired lease options and concluded that the fair-value of this contingent liability is approximately $363 , which is recorded in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheets. Payments will be made when milestones are achieved. The contingent liability will be periodically re-evaluated and adjustments will be recorded as needed. See Note 17 for additional information. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | GEOGRAPHIC INFORMATION The Company attributes revenues to customers based on the location of the customer. Information as to the Company’s operations in different geographical areas is as follows: December 31, 2018 2017 Long-lived assets: United States $ 443,385 $ 343,344 Canada 22,107 17,082 Other 1,445 1,320 Total long-lived assets $ 466,937 $ 361,746 Year Ended December 31, 2018 2017 2016 Revenues: United States $ 734,748 $ 665,793 $ 588,791 Canada 36,728 42,186 49,706 Other 15,662 9,173 12,730 Total revenues $ 787,138 $ 717,152 $ 651,227 BUSINESS SEGMENT INFORMATION The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments for the year ended December 31, 2018 are U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“DG”). The Company’s U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services which include the construction of small-scale plants that the Company owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Non-solar DG segment sells electricity, processed renewable gas fuel, heat or cooling, produced from renewable sources of energy, other than solar, and generated by small-scale plants that the Company owns and O&M services for customer owned small-scale plants. The Company’s U.S. Regions segment also, as of 2017, includes certain small-scale solar grid-tie plants developed for customers previously included in our Non-solar DG segment. Previously reported amounts have been restated for comparative purposes. The “All Other” category offers enterprise energy management services, consulting services and the sale of solar PV energy products and systems which we refer to as integrated-PV. These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments. Certain reportable segments are an aggregation of operating segments. For the years ended December 31, 2018 , 2017 and 2016 unallocated corporate expenses were $30,415 , $27,195 and $32,225 , respectively. During the year ended December 31, 2016, the Company reserved for certain assets in its Canada segment totaling $1,934 due to collectability concerns as a result of its previously disclosed restructuring efforts. During the year ended December 31, 2016, the Company included in unallocated corporate activity $2,870 as a reserve for amounts payable from a customer who declared bankruptcy. For the years ended December 31, 2018 , 2017 and 2016 more than 77% of the Company’s revenues have been derived from federal, state, provincial or local government entities, including public housing authorities and public universities. The U.S. federal government, which is considered a single customer for reporting purposes, constituted 31.3% , 32.0% and 27.3% of the Company’s consolidated revenues for the years ended December 31, 2018 , 2017 and 2016 , respectively. Revenues from the U.S. federal government are included in the Company’s U.S. Federal segment. The reports of the Company’s chief operating decision maker do not include assets at the operating segment level. An analysis of the Company’s business segment information and reconciliation to the consolidated financial statements is as follows: U.S. Regions U.S. Federal Canada Non-solar DG All Other Total Consolidated 2018 Revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 Interest income 9 126 — 147 — 282 Interest expense 6,188 1,045 1,917 6,172 22 15,344 Depreciation and intangible asset amortization 5,578 2,772 1,155 18,101 1,542 29,148 Unallocated corporate activity — — — — — (30,415 ) Income before taxes, excluding unallocated corporate activity 20,543 36,332 (2,746 ) 13,412 5,264 72,805 2017 Revenues 290,196 229,146 43,803 79,220 74,787 717,152 Interest income 2 44 1 83 — 130 Interest expense 2,672 1,056 1,927 3,389 38 9,082 Depreciation and intangible asset amortization 2,974 2,623 1,178 15,259 1,881 23,915 Unallocated corporate activity — — — — — (27,195 ) Income (loss) before taxes, excluding unallocated corporate activity 13,865 29,261 1,751 8,115 2,920 55,912 2016 Revenues 276,766 178,005 50,448 74,395 71,613 651,227 Interest income 1 11 — 38 — 50 Interest expense 1,055 942 1,737 3,319 23 7,076 Depreciation and intangible asset amortization 1,901 2,588 1,090 14,557 2,628 22,764 Unallocated corporate activity — — — — — (32,225 ) Income (loss) before taxes, excluding unallocated corporate activity 19,802 22,246 (2,330 ) 9,301 (427 ) 48,592 Information as to the Company’s revenues by service and product lines is as follows: Year Ended December 31, 2018 2017 2016 Revenues: Project $ 545,053 $ 506,550 $ 454,200 Energy Assets 95,776 69,241 64,882 O&M 65,236 60,574 63,082 Integrated-PV 41,349 38,796 29,325 Other Services 39,724 41,991 39,738 Total Revenues $ 787,138 $ 717,152 $ 651,227 |
Other Expenses, Net
Other Expenses, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expenses, Net | OTHER EXPENSES, NET The components of other expenses, net, are as follows: Year Ended December 31, 2018 2017 2016 Gain on derivatives $ (121 ) $ (271 ) $ (279 ) Interest expense, net of interest income 13,132 8,086 6,510 Amortization of deferred financing fees, net 1,894 1,350 1,173 Foreign currency transaction (gain) loss 1,804 (1,294 ) 5 Other expenses, net $ 16,709 $ 7,871 $ 7,409 Estimated amortization expense for existing deferred financing fees for the next five succeeding fiscal years is as follows: Estimated Amortization 2019 $ 1,774 2020 1,061 2021 781 2022 671 2023 487 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT The Company recognizes its financial assets and liabilities at fair value on a recurring basis (at least annually). Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Three levels of inputs that may be used to measure fair value are as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The following table presents the input level used to determine the fair values of the Company’s financial instruments measured at fair value on a recurring basis: Fair Value as of December 31, Level 2018 2017 Assets: Interest rate swap instruments 2 $ 733 $ 233 Commodity swap instruments 2 33 — Total assets $ 766 $ 233 Liabilities: Interest rate swap instruments 2 $ 3,187 3,529 Commodity swap instruments 2 70 — Interest make-whole provisions 2 1,808 — Contingent consideration liabilities 3 962 — Total liabilities $ 6,027 $ 3,529 The fair value of the Company’s interest rate swaps was determined using cash flow analysis on the expected cash flow of the contract in combination with observable market-based inputs, including interest rate curves and implied volatilities. As part of this valuation, the Company considered the credit ratings of the counterparties to the interest rate swaps to determine if a credit risk adjustment was required. The fair value of the Company’s commodity swaps was determined using a cash flow analysis on the expected cash flow of the contract in combination with observable forward price inputs obtained from a third-party pricing source. As part of this valuation, the Company considered the credit ratings of the counterparties to the commodity swaps to determine if a credit risk adjustment was required. The fair value of the Company’s make-whole provisions were determined by comparing them against the rates of similar debt instruments under similar terms without a make-whole provision obtained from various highly rated third-party pricing sources. The fair value of the Company’s contingent consideration liabilities were determined by evaluating the acquired asset’s future financial forecasts and evaluating which, if any, of the cumulative revenue targets, financial metrics and/or milestones are likely to be met. The Company has classified contingent consideration related to certain acquisitions within Level 3 of the fair value hierarchy because the fair value is derived using significant unobservable inputs, which include discount rates and probability-weighted cash flows. The Company determined the fair value of its contingent consideration obligations based on a probability-weighted income approach derived from financial performance estimates and probability assessments of the attainment of certain targets. The Company establishes discount rates to be utilized in its valuation models based on the cost to borrow that would be required by a market participant for similar instruments. In determining the probability of attaining certain technical, financial and operation targets, the Company utilizes data regarding similar milestone events from our own experience, while considering the inherent difficulties and uncertainties in developing a product. On a quarterly basis, the Company reassesses the probability factors associated with the financial, operational and technical targets for its contingent consideration obligations. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. The key assumptions as of December 31, 2018, related to the contingent consideration from the acquisition of certain assets of Chelsea Group Limited, used in the model include a discount rate of 18% for purposes of discounting the low and base case scenarios associated with achievement of the financial based earn-out. The probabilities assigned to these scenarios were 50% for both the low and base case scenarios. An increase or decrease in the probability of achievement of any scenario could result in a significant increase or decrease to the estimated fair value of the contingent consideration liability. The key assumptions as of December 31, 2018, related to the contingent consideration from the acquisition of certain lease options, used in the model include a discount rate of 18% for purposes of discounting the low, base and high case scenarios associated with achievement of the financial based earn-out. The probabilities assigned to these scenarios were 20% for the low case, 75% for the base case and 5% for the high case. An increase or decrease in the probability of achievement of any scenario could result in a significant increase or decrease to the estimated fair value of the contingent consideration liability. The following table sets forth a summary of changes in fair value of contingent liabilities classified as Level 3 for the year ended December 31, 2018: Year Ended December 31, 2018 Contingent consideration liabilities balance at the beginning of year $ — Contingent consideration issued in connection with acquisitions 918 Loss on change in fair value 44 Contingent consideration liabilities balance at the end of year $ 962 The fair value of financial instruments is determined by reference to observable market data and other valuation techniques, as appropriate. The only category of financial instruments where the difference between fair value and recorded book value is notable is long-term debt. At December 31, 2018 and 2017 , the fair value of the Company’s long-term debt was estimated using discounted cash flows analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements which are considered to be level two inputs. There have been no transfers in or out of level two or three for the years ended December 31, 2018 and 2017 . Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt, excluding capital leases, are as follows: As of December 31, 2018 As of December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Long-term debt value (Level 2) $ 211,823 $ 212,687 $ 160,108 $ 160,598 The Company is also required periodically to measure certain other assets at fair value on a nonrecurring basis, including long-lived assets, goodwill and other intangible assets. The Company determined the fair value used in its annual goodwill impairment analysis with its own discounted cash flow analysis. The Company has determined the inputs used in such analysis as Level 3 inputs. There were no assets recorded at fair value on a non-recurring basis at December 31, 2018 or 2017 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES At December 31, 2018 and 2017 , the following table presents information about the fair value amounts of the Company’s derivative instruments: Derivatives as of December 31, 2018 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 703 Other assets $ 233 Interest rate swap contracts Other liabilities $ 3,187 Other liabilities $ 3,529 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 30 Other assets $ — Commodity swap contracts Other assets $ 33 Other assets $ — Commodity swap contracts Other liabilities $ 70 Other liabilities $ — Interest make-whole provisions Other liabilities $ 1,808 Other liabilities $ — All but four of the Company’s freestanding derivatives were designated as hedging instruments as of December 31, 2018 and all but one of the Company’s derivatives were designated as hedging instruments as of December 31, 2017 . The following tables present information about the effects of the Company’s derivative instruments on the consolidated statements of income (loss) and consolidated statements of comprehensive income (loss): Location of (Gain) Loss Recognized in Net Income Amount of (Gain) Loss Recognized in Net Income for the Year Ended December 31, 2018 2017 2016 Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (196 ) $ (271 ) $ (279 ) Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (308 ) $ — $ — Commodity swap contracts Other expenses, net $ 36 $ — $ — Interest make-whole provisions Other expenses, net $ 337 $ — $ — Year Ended December 31, 2018 Derivatives Designated as Hedging Instruments: Accumulated loss in AOCI at the beginning of the period $ (1,745 ) Cumulative impact from the adoption of ASU No. 2017-12 (486 ) Unrealized gain recognized in AOCI 603 Gain reclassified from AOCI to other expenses, net (196 ) Accumulated loss in AOCI at the end of the period $ (1,824 ) In March 2010, the Company entered into a fourteen -year interest rate swap contract under which the Company agreed to pay an amount equal to a specified fixed rate of interest times a notional amount, and to in turn receive an amount equal to a specified variable rate of interest times the same notional principal amount. The swap covered an initial notional amount of approximately $27,900 variable rate note at a fixed interest rate of 3.74% and expired in December 2024. This swap was designated as a hedge in March 2013. During the second quarter of 2014, this swap was de-designated and re-designated as a hedge as a result of a partial pay down of the associated hedged debt principal. As a result $566 was reclassified from accumulated other comprehensive loss and recorded as a reduction to other expenses, net in the Company’s consolidated statements of income (loss) during the second quarter of 2014. During the second quarter 2018, this swap was de-designated as a hedge as a result of the expected pay down of the associated hedged debt principal. As a result, $34 was reclassified from accumulated other comprehensive loss and recorded to other expenses, net in the Company’s consolidated statements of income (loss) during the second quarter 2018. In the third quarter of 2018, the expected pay down of the hedged debt principal occurred and the balance of the related hedge was written off. This resulted in a decrease of other liabilities of $252 in the Company’s consolidated balance sheets and a corresponding decrease in other expenses, net in the Company’s consolidated statements of income (loss). The followings tables present a listing of all the Company’s active derivative instruments as of December 31, 2018 : Active Interest Rate Swap Effective Date Expiration Date Initial Notional Amount ($) Status 11-Year, 5.77% Fixed October 2018 October 2029 $ 9,200 Designated 15-Year, 3.19% Fixed June 2018 June 2033 10,000 Designated 3-Year, 2.46% Fixed March 2018 December 2020 17,100 Not Designated 10-Year, 4.74% Fixed June 2017 December 2027 14,100 Designated 15-Year, 3.26% Fixed February 2023 December 2038 14,084 Designated 7-Year, 2.19% Fixed February 2016 February 2023 20,746 Designated 8-Year, 3.70% Fixed March 2020 June 2028 14,643 Designated 8-Year, 3.70% Fixed March 2020 June 2028 10,734 Designated 8-Year, 1.71% Fixed October 2012 March 2020 9,665 Designated 8-Year, 1.71% Fixed October 2012 March 2020 7,085 Designated 15-Year, 5.30% Fixed February 2006 February 2021 3,256 Designated 15.5-Year, 5.40% Fixed September 2008 March 2024 13,081 Designated Active Commodity Swap Effective Date Expiration Date Initial Notional Amount (Volume) Commodity Measurement Status 1-Year, $2.84 MMBtu Fixed May 2018 April 2019 323,390 MMBtus Not Designated 1-Year, $2.68 MMBtu Fixed May 2019 April 2020 437,004 MMBtus Not Designated 1-Year, $2.70 MMBtu Fixed May 2020 April 2021 435,810 MMBtus Not Designated Other Derivatives Classification Effective Date Expiration Date Fair Value ($) Interest make-whole provisions Liability June/August 2018 December 2038 $ 1,808 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | GEOGRAPHIC INFORMATION The Company attributes revenues to customers based on the location of the customer. Information as to the Company’s operations in different geographical areas is as follows: December 31, 2018 2017 Long-lived assets: United States $ 443,385 $ 343,344 Canada 22,107 17,082 Other 1,445 1,320 Total long-lived assets $ 466,937 $ 361,746 Year Ended December 31, 2018 2017 2016 Revenues: United States $ 734,748 $ 665,793 $ 588,791 Canada 36,728 42,186 49,706 Other 15,662 9,173 12,730 Total revenues $ 787,138 $ 717,152 $ 651,227 BUSINESS SEGMENT INFORMATION The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments for the year ended December 31, 2018 are U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“DG”). The Company’s U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services which include the construction of small-scale plants that the Company owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Non-solar DG segment sells electricity, processed renewable gas fuel, heat or cooling, produced from renewable sources of energy, other than solar, and generated by small-scale plants that the Company owns and O&M services for customer owned small-scale plants. The Company’s U.S. Regions segment also, as of 2017, includes certain small-scale solar grid-tie plants developed for customers previously included in our Non-solar DG segment. Previously reported amounts have been restated for comparative purposes. The “All Other” category offers enterprise energy management services, consulting services and the sale of solar PV energy products and systems which we refer to as integrated-PV. These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments. Certain reportable segments are an aggregation of operating segments. For the years ended December 31, 2018 , 2017 and 2016 unallocated corporate expenses were $30,415 , $27,195 and $32,225 , respectively. During the year ended December 31, 2016, the Company reserved for certain assets in its Canada segment totaling $1,934 due to collectability concerns as a result of its previously disclosed restructuring efforts. During the year ended December 31, 2016, the Company included in unallocated corporate activity $2,870 as a reserve for amounts payable from a customer who declared bankruptcy. For the years ended December 31, 2018 , 2017 and 2016 more than 77% of the Company’s revenues have been derived from federal, state, provincial or local government entities, including public housing authorities and public universities. The U.S. federal government, which is considered a single customer for reporting purposes, constituted 31.3% , 32.0% and 27.3% of the Company’s consolidated revenues for the years ended December 31, 2018 , 2017 and 2016 , respectively. Revenues from the U.S. federal government are included in the Company’s U.S. Federal segment. The reports of the Company’s chief operating decision maker do not include assets at the operating segment level. An analysis of the Company’s business segment information and reconciliation to the consolidated financial statements is as follows: U.S. Regions U.S. Federal Canada Non-solar DG All Other Total Consolidated 2018 Revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 Interest income 9 126 — 147 — 282 Interest expense 6,188 1,045 1,917 6,172 22 15,344 Depreciation and intangible asset amortization 5,578 2,772 1,155 18,101 1,542 29,148 Unallocated corporate activity — — — — — (30,415 ) Income before taxes, excluding unallocated corporate activity 20,543 36,332 (2,746 ) 13,412 5,264 72,805 2017 Revenues 290,196 229,146 43,803 79,220 74,787 717,152 Interest income 2 44 1 83 — 130 Interest expense 2,672 1,056 1,927 3,389 38 9,082 Depreciation and intangible asset amortization 2,974 2,623 1,178 15,259 1,881 23,915 Unallocated corporate activity — — — — — (27,195 ) Income (loss) before taxes, excluding unallocated corporate activity 13,865 29,261 1,751 8,115 2,920 55,912 2016 Revenues 276,766 178,005 50,448 74,395 71,613 651,227 Interest income 1 11 — 38 — 50 Interest expense 1,055 942 1,737 3,319 23 7,076 Depreciation and intangible asset amortization 1,901 2,588 1,090 14,557 2,628 22,764 Unallocated corporate activity — — — — — (32,225 ) Income (loss) before taxes, excluding unallocated corporate activity 19,802 22,246 (2,330 ) 9,301 (427 ) 48,592 Information as to the Company’s revenues by service and product lines is as follows: Year Ended December 31, 2018 2017 2016 Revenues: Project $ 545,053 $ 506,550 $ 454,200 Energy Assets 95,776 69,241 64,882 O&M 65,236 60,574 63,082 Integrated-PV 41,349 38,796 29,325 Other Services 39,724 41,991 39,738 Total Revenues $ 787,138 $ 717,152 $ 651,227 |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | QUARTERLY INFORMATION (Unaudited) The following tables set forth selected unaudited condensed consolidated statement of income (loss) data for each of the most recent eight quarters ended December 31, 2018 . Operating results for any quarter are not necessarily indicative of results for any future period. Three Months Ended, March 31 June 30 September 30 December 31 2018 Revenues $ 167,410 $ 196,982 $ 205,375 $ 217,371 Gross profit $ 35,473 $ 42,776 $ 46,162 $ 49,201 Net income attributable to common shareholders $ 6,988 $ 8,702 $ 10,701 $ 11,593 Net income per share attributable to common shareholders: Basic $ 0.15 $ 0.19 $ 0.23 $ 0.25 Diluted $ 0.15 $ 0.19 $ 0.23 $ 0.24 Weighted average common shares outstanding: Basic 45,373 45,470 45,854 46,114 Diluted 45,994 46,406 46,944 47,327 2017 Revenues $ 134,610 $ 166,665 $ 204,744 $ 211,133 Gross profit $ 25,924 $ 35,408 $ 41,367 $ 41,459 Net income (loss) attributable to common shareholders $ (644 ) $ 5,831 $ 8,493 $ 23,811 Net income (loss) per share attributable to common shareholders: Basic $ (0.01 ) $ 0.13 $ 0.19 $ 0.52 Diluted $ (0.01 ) $ 0.13 $ 0.19 $ 0.52 Weighted average common shares outstanding: Basic 45,514 45,463 45,524 45,537 Diluted 45,514 45,675 45,771 45,957 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company has a controlling financial interest and four investment funds formed to fund the purchase and operation of solar energy systems, which are consolidated with the Company as variable interest entities (“VIE”). The Company uses a qualitative approach in assessing the consolidation requirement for VIEs. This approach focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For all periods presented, the Company has determined that it is the primary beneficiary in all of its operational VIEs. The Company evaluates its relationships with the VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Gains and losses from the translation of all foreign currency financial statements are recorded in accumulated other comprehensive loss, net, within stockholders’ equity. The Company prepares its consolidated financial statements in conformity with GAAP. |
Use of Estimates | Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates and assumptions used in these consolidated financial statements relate to management’s estimates of final construction contract profit in accordance with accounting for long-term contracts, allowance for doubtful accounts, inventory reserves, realization of project development costs, fair value of derivative financial instruments, accounting for business acquisitions, stock-based awards, impairment of goodwill and long-lived assets, asset retirement obligations (“AROs”), income taxes, self insurance reserves and potential liability in conjunction with certain commitments and contingencies. Actual results could differ from those estimates. The Company is self-insured for employee health insurance. The maximum exposure in fiscal year 2018 under the plan was $100 per covered participant, after which reinsurance takes effect. The liability for unpaid claims and associated expenses, including incurred but not reported claims, is determined by management and reflected in the Company’s consolidated balance sheets in accrued expenses and other current liabilities. The liability is calculated based on historical data, which considers both the frequency and settlement amount of claims. The Company’s estimated accrual for this liability could be different than its ultimate obligation if variables such as the frequency or amount of future claims differ significantly from management’s assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash on deposit, overnight repurchase agreements and amounts invested in highly liquid money market funds. Cash equivalents consist of short term investments with original maturities of three months or less. The Company maintains accounts with financial institutions and the balances in such accounts, at times, exceed federally insured limits. This credit risk is divided among a number of financial institutions that management believes to be of high quality. The carrying amount of cash and cash equivalents approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 17. |
Restricted Cash | Restricted Cash Restricted cash consists of cash and cash equivalents held in an escrow account in association with construction draws for energy savings performance contracts (“ESPC”), construction of energy assets, operations and maintenance (“O&M”) reserve accounts, cash collateralized letters of credit as well as cash required under term loans to be maintained in debt service reserve accounts until all obligations have been indefeasibly paid in full. These accounts are primarily invested in highly liquid money market funds. The carrying amount of the cash and cash equivalents in these accounts approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 17. Restricted cash also includes funds held for clients, which represent assets that, based upon the Company’s intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds to third parties, primarily utility service providers, relating to the Company’s enterprise energy management services. As of December 31, 2018 and 2017 , the Company classified the non-current portion of restricted cash of $19,637 and $20,092 , respectively, in other assets on its consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and management’s evaluation of outstanding accounts receivable. Bad debts are written off against the allowance when identified. |
Accounts Receivable Retainage | Accounts Receivable Retainage Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. |
Inventory | Inventory Inventories, which consist primarily of PV solar panels, batteries and related accessories, are stated at the lower of cost (“first-in, first-out” method) or net realizable value (determined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation). Provisions have been made to reduce the carrying value of inventory to the net realizable value. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses consist primarily of short-term prepaid expenditures that will amortize within one year. |
Federal ESPC Receivable | Federal ESPC Receivable Federal ESPC receivable represents the amount to be paid by various federal government agencies for work performed and earned by the Company under specific ESPCs. The Company assigns certain of its rights to receive those payments to third-parties that provide construction and permanent financing for such contracts. Upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the assigned ESPC receivable from the government and corresponding ESPC liability are eliminated from the Company’s consolidated financial statements. |
Project Development Costs | Project Development Costs The Company capitalizes as project development costs only those costs incurred in connection with the development of energy projects, primarily direct labor, interest costs, outside contractor services, consulting fees, legal fees and travel, if incurred after a point in time where the realization of related revenue becomes probable. Project development costs incurred prior to the probable realization of revenue are expensed as incurred. The Company classifies as a current asset those project development efforts that are expected to proceed to construction activity in the twelve months that follow. The Company periodically reviews these balances and writes off any amounts where the realization of the related revenue is no longer probable. Project development costs of $639 and $2,355 were included in other long-term assets as of December 31, 2018 and 2017 , respectively. |
Property and Equipment | Property and Equipment Property and equipment consists primarily of office and computer equipment, and is recorded at cost. Major additions and improvements are capitalized as additions to the property and equipment accounts, while replacements, maintenance and repairs that do not improve or extend the life of the respective assets, are expensed as incurred. Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited Gains or losses on disposal of property and equipment are reflected in selling, general and administrative expenses in the consolidated statements of income (loss). |
Energy Assets | Energy Assets Energy assets consist of costs of materials, direct labor, interest costs, outside contract services, deposits and project development costs incurred in connection with the construction of small-scale renewable energy plants that the Company owns. These amounts are capitalized and amortized to cost of revenues in the Company’s consolidated statements of income (loss) on a straight line basis over the lives of the related assets or the terms of the related contracts. The Company capitalizes interest costs relating to construction financing during the period of construction. Capitalized interest is included in energy assets, net, in the Company’s consolidated balance sheets. Capitalized interest is amortized to cost of revenues in the Company’s consolidated statements of income (loss) on a straight line basis over the useful life of the associated energy asset. The amount of interest capitalized for the years ended December 31, 2018 , 2017 and 2016 was $3,817 , $ 4,256 and $ 1,253 , respectively. Routine maintenance costs are expensed in the current year’s consolidated statements of income (loss) to the extent that they do not extend the life of the asset. Major maintenance, upgrades and overhauls are required for certain components of the Company’s assets. In these instances, the costs associated with these upgrades are capitalized and are depreciated over the shorter of the remaining life of the asset or the period until the next required major maintenance or overhaul. Included in energy assets are capital lease assets and accumulated depreciation of capital lease assets. For additional information see the Sale-Leaseback section below and Note 7. The Company evaluates its long-lived assets for impairment as events or changes in circumstances indicate the carrying value of these assets may not be fully recoverable. Examples of such triggering events applicable to the Company’s assets include a significant decrease in the market price of a long-lived asset or asset group or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. The Company evaluates recoverability of long-lived assets to be held and used by estimating the undiscounted future cash flows before interest associated with the expected uses and eventual disposition of those assets. When these comparisons indicate that the carrying value of those assets is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the amount that the carrying value exceeds the fair value. From time to time, the Company has applied for and received cash grant awards from the U.S. Treasury Department (the “Treasury”) under Section 1603 of the American Recovery and Reinvestment Act of 2009 (the “Act”). The Act authorized the Treasury to make payments to eligible persons who place in service qualifying renewable energy projects. The grants are paid in lieu of investment tax credits. All of the cash proceeds from the grants were used and recorded as a reduction in the cost basis of the applicable energy assets. If the Company disposes of the property, or the property ceases to qualify as specified energy property, within five years from the date the property is placed in service, then a prorated portion of the Section 1603 payment must be repaid. The Company last received a Section 1603 grant during the year ended December 31, 2014. No further Section 1603 grant payments are expected to be received as the program has expired. For tax purposes, the Section 1603 payments are not included in federal and certain state taxable income and the basis of the property is reduced by 50% of the payment received. Deferred grant income of $6,637 and $7,188 in the accompanying consolidated balance sheets at December 31, 2018 and 2017 , respectively, represents the benefit of the basis difference to be amortized to income tax expense over the life of the related property. The Company has historically received cash rebates from utility companies, which were accounted for as reductions in the book value of the related energy assets. The rebates were one-time payments based on the cost and efficiency of the installed units, and are earned upon installation and inspection by the utility. The payments are not related to, or subject to adjustment based on, future operating performance. The rebates were payable from the utility to the Company and are applied against the cost of construction, thereby reducing the book value of the corresponding energy assets and have been treated as an investing activity in the accompanying consolidated statements of cash flows. |
Deferred Financing Fees | Deferred Financing Fees Deferred financing fees relate to the external costs incurred to obtain financing for the Company. Deferred financing fees are amortized over the respective term of the financing using the effective interest method, with the exception of the Company’s revolving credit facility and construction loans, as discussed in Note 8, for which deferred financing fees are amortized on a straight-line basis over the term of the agreement. Deferred financing fees are presented on the consolidated balance sheets as a reduction to long-term debt and capital lease liabilities. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) of companies acquired in purchase transactions. The Company has recorded intangible assets related to customer contracts, customer relationships, non-compete agreements, trade names and technology, each with defined useful lives. The Company assesses the impairment of goodwill and intangible assets that have indefinite lives on an annual basis (December 31st) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Goodwill is reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and projections of future results. T he Company estimates the reporting units fair value and compares it with the carrying value of the reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. Fair value is determined using both an income approach and a market approach. The estimates and assumptions used in the Company’s calculations include revenue growth rates, expense growth rates, expected capital expenditures to determine projected cash flows, expected tax rates and an estimated discount rate to determine present value of expected cash flows. These estimates are based on historical experiences, the Company’s projections of future operating activity and its weighted-average cost of capital. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the consolidated statements of income (loss). Judgment is required in determining whether an event has occurred that may impair the value of goodwill or identifiable intangible assets. Acquired intangible assets other than goodwill that are subject to amortization include customer contracts and customer relationships, as well as software/technology, trade names and non-compete agreements. The intangible assets are amortized over periods ranging from one to fifteen years from their respective acquisition dates. The Company evaluates its intangible assets for impairment consistent with, and part of, their long-lived assets evaluation, as discussed in Energy Assets above. See Notes 4 and 5 for additional disclosures. |
Other Assets | Other Assets Other assets consist primarily of notes and contracts receivable due to the Company from various customers and non-current restricted cash. Other assets also include, the fair value of derivatives determined to be assets, the non-current portion of project development costs, accounts receivable retainages, sale-leaseback deferred loss and deferred contract costs. |
Asset Retirement Obligations | Asset Retirement Obligations The Company recognizes a liability for the fair value of required asset retirement obligations (“AROs”) when such obligations are incurred. The Company records, as liabilities, the fair value of the AROs on a discounted basis when incurred and reasonably estimated which is typically at the time the assets are installed or operating. Over time, the liabilities increase due to the change in present value, and initial capitalized costs are depreciated over the useful life of the related assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement cost incurred is recognized as an operating gain or loss in the consolidated statements of income (loss). See Note 7 for additional disclosures on the Company’s AROs. |
Federal ESPC Liabilities | Federal ESPC Liabilities Federal ESPC liabilities, for both projects and energy assets, represent the advances received from third-parties under agreements to finance certain ESPC projects with various federal government agencies. For projects related to the construction or installation of certain energy savings equipment or facilities developed for the government customer, upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the ESPC receivable from the government and corresponding ESPC liability is eliminated from the Company’s consolidated balance sheet. Until recourse to the Company ceases for the ESPC receivables transferred to the investor, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received. For small-scale energy assets developed for a government customer that the Company owns and operates, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received until the liability is eliminated from the Company’s consolidated balance sheet as contract payments assigned by the customer are transferred to the investor. |
Sale-Leaseback | Sale-Leaseback During the first quarter of 2015, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects. In September 2016, the Company amended this agreement to increase the investor’s commitment up to a maximum combined funding amount of $100,000 through June 30, 2017 on certain projects. In May 2017, the Company amended this agreement to extend the end date of the agreement to June 30, 2018. This agreement was not extended further and expired on June 30, 2018. Additionally, the Company sold and contemporaneously leased back one solar PV project to another investor, not a party to the master lease agreement, under a new agreement during the twelve months ended December 31, 2017. During August 2018, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects through August 2019 up to a maximum funding amount of $100,000 . During August 2018, the Company sold and contemporaneously leased back two solar PV projects. See below for a summary of solar PV project sales by fiscal year: Year Ended # Solar PV Projects Sold (actual #’s) Sale Price Deferred Gain Recorded Deferred Loss Recorded Capital Lease Asset/Liability Recorded Initial Lease Term (years) Minimum Lease Payment Maximum Lease Payment Year-ended December 31, 2016 6 $ 17,045 $ 906 $ 145 $ 8,830 20-25 $ 2 $ 397 Year-ended December 31, 2017 13 $ 51,204 $ 4,625 $ 1,204 $ 22,934 10-20 $ 4 $ 510 Year-ended December 31, 2018 2 $ 5,145 $ 574 $ — $ 2,625 20 $ 3 $ 144 As part of these agreements, the Company is a party to a master lease agreement that provides for the sale of solar PV projects to a third-party investor and the simultaneous leaseback of the projects, which the Company then operates and maintains, recognizing revenue through the sale of the electricity and solar renewable energy credits generated by these projects. In sale-leaseback arrangements, the Company first determines whether the solar PV project under the sale-leaseback arrangement is “integral equipment.” A solar PV project is determined to be integral equipment when the cost to remove the project from its existing location, including the shipping and reinstallation costs of the solar PV project at the new site, including any diminution in fair value, exceeds 10% of the fair value of the solar PV project at the time of its original installation. When the leaseback arrangement expires, the Company has the option to purchase the solar PV project for the then fair market value or, in certain circumstances, renew the lease for an extended term. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company not to be integral equipment as the cost to remove the project from its existing location would not exceed 10% of its original fair value. For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a capital lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be capital leases. For leasebacks classified as capital leases, the Company initially records a capital lease asset and capital lease obligation in its consolidated balance sheet equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For capital leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s consolidated balance sheet at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its consolidated balance sheet and amortizes the deferred amounts over the lease term in cost of revenues in its consolidated statements of income (loss). Net amortization expense in cost of revenues related to deferred gains and losses was $213 and $79 of net gains for the year ended December 31, 2018 and December 31, 2017, respectively. |
Other Liabilities | Other Liabilities Other liabilities consist primarily of deferred revenue related to multi-year operation and maintenance contracts which expire at various dates through 2033. Other liabilities also include the fair value of derivatives and the long term portion of sale-leaseback deferred gains. See Note 18 for additional disclosures. |
Revenue Recognition | Revenue Recognition The Company derives revenues from energy efficiency and renewable energy products and services. Energy efficiency products and services include the design, engineering, and installation of equipment and other measures to improve the efficiency, and control the operation, of a facility’s energy infrastructure. Renewable energy products and services include the construction of small-scale plants that produce electricity, gas, heat or cooling from renewable sources of energy, the sale of such electricity, gas, heat or cooling from plants that the Company owns, and the sale and installation of solar energy products and systems. Below is a description of the Company’s primary lines of business. Projects - The Company’s principal service relates to energy efficiency projects, which entails the design, engineering and installation of, and assisting with the arranging of financing for an ever-increasing array of innovative technologies and techniques to improve the energy efficiency, and control the operation, of a building’s energy- and water- consuming systems. In certain projects, the Company also designs and constructs for a customer a central plant or cogeneration system providing power, heat and/or cooling to a building, or a small-scale plant that produces electricity, gas, heat or cooling from renewable sources of energy. Under Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) the Company recognizes revenue from the installation or construction of projects over time using the cost-based input method. The Company uses the total costs incurred on the the project relative to the total expected costs to satisfy the performance obligation. When the estimate on a contract indicates a loss, or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Operations & Maintenance (“O&M”) - After an energy efficiency or renewable energy project is completed, the Company often provides ongoing O&M services under a multi-year contract. These services include operating, maintaining and repairing facility energy systems such as boilers, chillers and building controls, as well as central power and other small-scale plants. For larger projects, the Company frequently maintains staff on-site to perform these services. Maintenance revenue is recognized using the input method to recognize revenue. In most cases, O&M fees are fixed annual fees. Because the Company is on-site to perform O&M services, the services are typically a distinct series of promises, and those services have the same pattern of transfer to the customer (i.e., evenly over time), the Company records the revenue on a straight-line basis. Some O&M service contract fees are billed on time expended. In those cases, revenue is recorded based on the time expended in that month. Energy Assets - The Company’s service offerings also includes the sale of electricity, processed renewable gas fuel, heat or cooling from the portfolio of assets that the Company owns and operates. The Company has constructed and is currently designing and constructing a wide range of renewable energy plants using landfill gas (“LFG”), wastewater treatment biogas, solar, biomass, other bio-derived fuels, wind and hydro sources of energy. Most of the Company’s renewable energy projects to date have involved the generation of electricity from solar PV and LFG or the sale of processed LFG. The Company purchases the LFG that otherwise would be combusted or vented, processes it, and either sells it or uses it in its energy plants. The Company has also designed and built, as well as owns, operates and maintains, plants that take biogas generated in the anaerobic digesters of wastewater treatment plants and turns it into renewable natural gas that is either used to generate energy on-site or that can be sold through the nation’s natural gas pipeline grid. Where the Company owns and operates energy producing assets, the Company typically enters into a long-term power purchase agreement (“PPA”) for the sale of the energy. Many of the Company’s energy assets also produce environmental attributes, including renewable energy credits (“RECs”) and Renewable Identification Numbers (“RINs”). In most cases, the Company sells these attributes under separate agreements with third parties other than the PPA customer. The Company recognizes revenues from the sale and delivery of the energy output from renewable energy plants, over time as produced and delivered to the customer, in accordance with specific PPA contract terms. Environmental attributes revenue is recognized at a point in time, when the environmental attributes are transferred to the customer in accordance with the transfer protocols of the environmental attributes market that the Company operates in. In those cases where environmental attributes are sold to the same customer as the energy output, the Company records revenue monthly for both the energy output and the environmental attribute output, as generated and delivered to the customer. The Company has determined that certain power purchase agreements contain a lease component in accordance with Accounting Standards Codification (“ASC”) 840, leases. The Company recognized $7,238 , $3,409 and $3,162 of operating lease revenue under these agreements during the years ended December 31, 2018, 2017 and 2016, respectively. Other - The Company’s service and product offerings also include integrated-PV and consulting and enterprise energy management services. The Company recognizes revenues from delivery of engineering, consulting services and enterprise energy management services over time. For the sale of solar materials, revenue is recognized at a point in time when the Company has transferred physical control of the asset to the customer upon shipment. To the extent a contract is deemed to have multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. Billings in excess of cost and estimated earnings represents advanced billings on certain construction contracts. Costs and estimated earnings in excess of billings represent certain amounts under customer contracts that were earned and billable but not invoiced. Results for reporting periods beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under ASC 605, Revenue Recognition. Cost of Revenues Cost of revenues include the cost of labor, materials, equipment, subcontracting and outside engineering that are required for the development and installation of projects, as well as preconstruction costs, sales incentives, associated travel, inventory obsolescence charges, amortization of intangible assets related to customer contracts, and, if applicable, costs of procuring financing. A majority of the Company’s contracts have fixed price terms; however, in some cases the Company negotiates protections, such as a cost-plus structure, to mitigate the risk of rising prices for materials, services and equipment. Cost of revenues also include the costs of maintaining and operating the small-scale renewable energy plants that the Company owns, including the cost of fuel (if any) and depreciation charges. |
Income Taxes | Income Taxes The Company provides for income taxes based on the liability method. The Company provides for deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities calculated using the enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. The Company accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors that include, but are not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on a quarterly basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company’s liabilities for uncertain tax positions can be relieved only if the contingency becomes legally extinguished through either payment to the taxing authority or the expiration of the statute of limitations, the recognition of the benefits associated with the position meet the “more-likely-than-not” threshold or the liability becomes effectively settled through the examination process. The Company considers matters to be effectively settled once the taxing authority has completed all of its required or expected examination procedures, including all appeals and administrative reviews; the Company has no plans to appeal or litigate any aspect of the tax position; and the Company believes that it is highly unlikely that the taxing authority would examine or re-examine the related tax position. The Company also accrues for potential interest and penalties, related to unrecognized tax benefits in income tax expense. The Company has presented all deferred tax assets and liabilities as net and noncurrent on its consolidated balance sheet as of December 31, 2018 and 2017 , respectively. See Note 9 for additional information on the Company’s income taxes. |
Foreign Currency | Foreign Currency The local currency of the Company’s foreign operations is considered the functional currency of such operations. All assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the year. Translation adjustments are accumulated as a separate component of stockholders’ equity. Foreign currency translation gains and losses are reported in the consolidated statements of comprehensive income (loss). Foreign currency transaction gains and losses are reported in the consolidated statements of income (loss). |
Financial Instruments | Financial Instruments Financial instruments consist of cash and cash equivalents, restricted cash, accounts and notes receivable, long-term contract receivables, accounts payable, accrued expenses, capital lease assets and liabilities, contingent considerations, short- and long-term borrowings, interest rate swaps, and commodity swaps. Because of their short maturity, the carrying amounts of cash and cash equivalents, restricted cash, accounts and notes receivable, accounts payable, and accrued expenses approximate fair value. |
Share-Based Compensation Expense | Stock-Based Compensation Expense Stock-based compensation expense results from the issuance of shares of restricted common stock and grants of stock options to employees, directors, outside consultants and others. The Company recognizes the costs associated with restricted stock option grants, and employee stock purchases made via the Company’s Employee Stock Purchase Plan (the “ESPP”) using the fair value recognition provisions of accounting standards codification (“ASC”) 718, Compensation - Stock Compensation (“ASC 718”) on a straight-line basis over the vesting period of the awards. Certain option grants have performance conditions that must be achieved prior to vesting and are expensed based on the expected achievement at each reporting period. Stock-based compensation expense is also recognized in association with employee stock purchases related to the Company’s ESPP. Stock-based compensation expense is recognized based on the grant-date fair value. The Company estimates the fair value of the stock-based awards, including stock options, using the Black-Scholes option-pricing model. Determining the fair value of stock-based awards requires the use of highly subjective assumptions, including the fair value of the common stock underlying the award, the expected term of the award and expected stock price volatility. The assumptions used in determining the fair value of stock-based awards represent management’s estimates, which involve inherent uncertainties and the application of management judgment. As a result, if factors change, and different assumptions are employed, the stock-based compensation could be materially different in the future. The risk-free interest rates are based on the U.S. Treasury yield curve in effect at the time of grant, with maturities approximating the expected life of the stock options. The Company has no history of paying dividends. Additionally, as of each of the grant dates, there was no expectation that the Company would pay dividends over the expected life of the options. The expected life of the awards is estimated using historical data and management’s expectations. The Company uses historical volatility as the expected volatility assumption required in the Black-Scholes model. The Company recognizes compensation expense for only the portion of options that are expected to vest. If there are any modifications or cancellations of the underlying invested securities or the terms of the stock option, it may be necessary to accelerate, increase or cancel any remaining unamortized stock-based compensation expense. As a result of the adoption of ASU 2016-09, during fiscal year 2017, no significant changes were made to the Company’s accounting for forfeitures. Upon adoption the Company recorded a $4,000 deferred tax asset and corresponding credit to retained earnings for excess tax benefits that had not previously been recognized because the related tax deductions had not reduced taxes payable. The Company also accounts for equity instruments issued to non-employee directors and consultants at fair value. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the equity instruments to be issued. The measurement date of the fair value of the equity instrument issued is the grant date, which is the date that the Company and the grantee reach a mutual understanding of the key terms and conditions of the award. |
Fair Value Measurements | Fair Value Measurements The Company follows the guidance related to fair value measurements for all of its non-financial assets and non-financial liabilities, except for those recognized at fair value in the financial statements at least annually. These assets include goodwill and long-lived assets measured at fair value for impairment assessments, and non-financial assets and liabilities initially measured at fair value in a business combination. The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts and notes receivable, long-term contract receivables, accounts payable, accrued expenses, capital lease assets and liabilities, contingent considerations, short- and long-term borrowings, interest rate swaps, and commodity swaps. Because of their short maturity, the carrying amounts of cash and cash equivalents, restricted cash, accounts and notes receivable, accounts payable, and accrued expenses approximate fair value. The carrying value of long-term variable-rate debt approximates fair value. As of December 31, 2018 , the carrying value of the Company’s long-term debt exceeds its fair value of $211,823 by approximately $864 . Fair value of the Company’s debt is based on quoted market prices or on rates available to the Company for debt with similar terms and maturities, which are level two inputs of the fair value hierarchy, as defined in Note 17. The Company accounts for its interest rate swaps and commodity swaps as derivative financial instruments in accordance with the related guidance. Under this guidance, derivatives are carried on the Company’s consolidated balance sheets at fair value. The fair value of the Company’s interest rate and commodity swaps are determined based on observable market data in combination with expected cash flows for each instrument. The Company accounts for its make-whole provision features as embedded derivatives in accordance with related guidance. Under this guidance, the derivative is bifurcated from its host contract and recorded on the Company’s consolidated balance sheets at fair value. The fair value of the Company’s make-whole provisions are determined based on observable market data and a with and without model. The consideration for the Company’s acquisitions often includes future payments that are contingent upon the occurrence of a particular event. The Company records a contingent consideration obligation for such contingent consideration payments at fair value on the acquisition date. The Company estimates the acquisition date fair value of contingent consideration obligations through valuation models that incorporate probability adjusted assumptions related to the achievement of the milestones and the likelihood of making related payments. Each period the Company revalues the contingent consideration obligations associated with the acquisition to fair value and records changes in the fair value as contingent consideration expense within the selling, general and administrative expenses line in our consolidated statements of income (loss). Increases or decreases in the fair value of the contingent consideration obligations can result from changes in assumed discount periods and rates, changes in the assumed timing and amount of revenue and expense estimates and changes in assumed probability with respect to the attainment of certain financial and operational metrics, among others. Significant judgment is employed in determining these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the amount of contingent consideration expense recorded in any given period. However, deferred consideration related to certain holdbacks and completion payments are considered short-term in nature. These amounts are recorded at full value and are only revalued if one of those underlying assumptions changes. See Note 17 for additional information related to fair value measurements. FAIR VALUE MEASUREMENT The Company recognizes its financial assets and liabilities at fair value on a recurring basis (at least annually). Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Three levels of inputs that may be used to measure fair value are as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the Company utilizes derivatives contracts as part of its risk management strategy to manage exposure to market fluctuations in interest and commodity rates. These instruments are subject to various credit and market risks. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. Credit risk represents the potential loss that may occur because a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. The Company seeks to manage credit risk by entering into financial instrument transactions only through counterparties that the Company believes to be creditworthy. Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates and commodity prices. The Company seeks to manage market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. As a matter of policy, the Company does not use derivatives for speculative purposes. The Company considers the use of derivatives with all financing transactions to mitigate risk. The Company recognizes cash flows from derivative instruments as operating activities in the consolidated statements of cash flows. The effective portion of changes in fair value on interest rate swaps designated as cash flow hedges are recognized in the Company’s consolidated statements of comprehensive income (loss). Changes in fair value on derivatives not designated as hedges are recognized in the Company’s consolidated statements of income (loss). In July 2018, the Company had an early prepayment on one of its term loans that had a related interest rate swap that was designated as a hedging instrument, which was canceled and de-designated as a hedge instrument. The Company does not have a history of prepaying its loans and notes that another prepayment is not probable and a forced prepayment of any of its hedged term or construction loans is remote. See Note 18 for additional information concerning the de-designation of this interest rate swap. In June 2018, the Company entered into a term loan agreement, discussed in Note 8, that contained an interest make-whole provision. In August 2018, the Company signed a joinder to the above agreement, which added another series of notes to the term loan that also contained an interest make-whole provision. The Company determined that these provisions fulfill the requirements of an embedded derivative instrument that were required to be bifurcated from its host agreement. The instrument is revalued periodically and the changes in fair value are recognized as either gains or losses in earnings in the Company’s consolidated statements of income (loss). See Notes 17 and 18 for additional information on the Company’s derivative instruments. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares, including vested restricted shares. When the effects are not anti-dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares; the dilutive effect of convertible preferred stock, under the “if converted” method; and the treasury stock method with regard to warrants and stock options; all as determined under the treasury stock method. |
Variable Interest Entities | Variable Interest Entities Certain contracts are executed jointly through partnership and joint venture arrangements with unrelated third parties. The arrangements are often formed for the single business purpose of executing a specific project and allow the Company to share risks and/or secure specialty skills required for project execution. The Company evaluates each partnership and joint venture at inception to determine if it qualifies as a VIE under ASC 810, Consolidation . A variable interest entity is an entity used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors who are not required to provide sufficient financial resources for the entity to support its activities without additional subordinated financial support. Upon the occurrence of certain events outlined in ASC 810, the Company reassesses its initial determination of whether the partnership or joint venture is a VIE. The Company also evaluates whether it is the primary beneficiary of each VIE and consolidates the VIE if the Company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining whether it qualifies as the primary beneficiary. The Company also considers all parties that have direct or implicit variable interests when determining whether it is the primary beneficiary. When the Company is determined to be the primary beneficiary, the VIE is consolidated. As required by ASC 810, management's assessment of whether the Company is the primary beneficiary of a VIE is continuously performed. The Company generally aggregates the disclosures of its VIEs based on certain qualitative and quantitative factors including the purpose and design of the underlying VIEs, the nature of the assets in the VIE, and the type of involvement the Company has with the VIE including its role and type of interest held in the VIE. As of December 31, 2018, all the VIEs that make up the Company’s investment funds are similar in purpose, design, and the Company’s involvement and, as such, are aggregated in one disclosure. See Note 10 for additional disclosures. |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests In each of September 2015, June 2017, June 2018 and October 2018, the Company formed an investment fund with a different third party investor which granted the applicable investor ownership interests in the net assets of certain of the Company’s renewable energy project subsidiaries. The Company currently has four such investment funds each with a different third party investor. The Company entered into these agreements in order to finance the costs of constructing energy assets which are under long-term customer contracts. The Company has determined that these entities qualify as VIEs and that it is the primary beneficiary in the operational partnerships for accounting purposes. Accordingly, the Company will consolidate the assets and liabilities and operating results of the entities in its consolidated financial statements. The Company will recognize the investors’ share of the net assets of the subsidiaries as redeemable non-controlling interests in its consolidated balance sheet. The Company has determined that the provisions in the contractual arrangements represent substantive profit-sharing arrangements. The Company has further determined that the appropriate methodology for attributing income and loss to the redeemable non-controlling interests each period is a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, the amounts of income and loss attributed to the redeemable non-controlling interests in the consolidated statements of income (loss) reflect changes in the amounts the investors would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements, assuming the net assets of this funding structure were liquidated at recorded amounts. The investors’ non-controlling interest in the results of operations of this funding structure is determined as the difference in the non-controlling interest’s claim under the HLBV method at the start and end of each reporting period, after taking into account any capital transactions, such as contributions or distributions, between the Company’s subsidiaries and the investors. The use of the HLBV methodology to allocate income to the redeemable non-controlling interest holders may create volatility in the Company’s consolidated statements of income (loss) as the application of HLBV can drive changes in net income available and loss attributable to the redeemable non-controlling interests from quarter to quarter. The Company classified the non-controlling interests with redemption features that are not solely within the control of the Company outside of permanent equity on its consolidated balance sheets. The redeemable non-controlling interests will be reported using the greater of their carrying value at each reporting date as determined by the HLBV method or the estimated redemption values in each reporting period. See Notes 10 and 11 for additional disclosures. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method applied to those contracts which were not completed as of December 31, 2017. Results for reporting periods beginning January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded an adjustment of $4,454 to retained earnings on January 1, 2018 due to the cumulative impact of adopting Topic 606. See Note 3 "Revenue from Contracts with Customers" for the required disclosures related to the impact of adopting this standard and a discussion of the Company's updated policies related to revenue recognition discussed below. The Company derives revenues from energy efficiency and renewable energy products and services. Energy efficiency products and services include the design, engineering, and installation of equipment and other measures to improve the efficiency, and control the operation, of a facility’s energy infrastructure. Renewable energy products and services include the construction of small-scale plants that produce electricity, gas, heat or cooling from renewable sources of energy, the sale of such electricity, gas, heat or cooling from plants that the Company owns, and the sale and installation of solar energy products and systems. For a description of the Company’s primary lines of business, see Revenue Recognition above. Intangibles-Goodwill and Other In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use-Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation, setup, and upfront costs and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective interim and annual periods beginning after December 15, 2019, with early adoption permitted, and can be applied either retrospectively or prospectively. The Company is currently evaluating the impact ASU 2018-13 on its consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2017-12 during the third quarter of 2018. Upon adoption, the Company recognized an increase to retained earnings and an accumulated other comprehensive loss of $432 to remove the cumulative effect of hedging ineffectiveness previously recognized in earnings, as of January 1, 2018, for contracts designated as hedging instruments that were outstanding at the beginning of the third quarter 2018. The Company also recognized a decrease in other expenses, net and an increase in accumulated other comprehensive loss of $54 to remove the cumulative effect of hedging ineffectiveness previously recognized in earnings through 2018. In October 2018, the FASB issued ASU No. 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes, which permits the use of the OIS rate as a U.S. benchmark interest rate for hedge accounting purposes. The Company adopted ASU 2018-16 in the fourth quarter of 2018. The adoption had no impact on the Company’s consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2018-13 on its consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, the Company is electing to only recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has completed its evaluation on the impact on the consolidated financial statements of the adoption of ASU 2016-02, and is adopting the standard as of January 1, 2019. On January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach of applying the new standard at the adoption date. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company is also choosing to apply the policy election under ASC 842 that allows the Company to not include its short-term leases in its calculation of right-of-use asset or liability and instead continue to recognize expense on a straight-line basis over the remaining lease term for these leases. As a result of the adoption of ASC 842, the Company expects to recognize an increase in net lease assets between $30.6 million and $33.8 million and an increase in net lease liabilities between $32.4 million and $35.7 million related to the recognition of a right-of-use asset and the associated liability. The Company is in the process of evaluating if there was an impairment of the previously unrecognized right-of-use assets effective January 1, 2019. The Company is currently working to complete the implementation of new processes and information technology tools to assist in our ongoing lease data collection and analysis as well as updating our accounting policies and internal controls in connection with the adoption of the new standard. Stock Based Compensation Expense In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This new guidance amends the scope of modification accounting for share-based payment awards. ASU 2017-09 provide guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company adopted these requirements on January 1, 2018. The adoption had no impact on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of current stock compensation recognition standards to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 will become effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity's adoption date of ASU 2014-09 (Topic 606), which the Company adopted on January 1, 2018. The Company adopted ASU 2018-07 during the second quarter of 2018. The adoption had no impact on the Company’s consolidated financial statements, as the Company currently has no issued share-payments to non-employees. Consolidated Statements of Cash Flow In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates diversity in practice in how certain cash receipts and cash payments are presented and classified in the consolidated statements of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company adopted these requirements on January 1, 2018. The adoption had no impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. ASU 2016-18 requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The guidance should be applied using a retrospective transition method for each period presented. The Company has adopted this guidance as of January 1, 2018 and the consolidated statement of cash flow has been prepared to conform with ASU 2016-18 for all periods presented. Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to allow entities to reclassify the income tax effects of tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact ASU 2018-02 on its consolidated financial statements. Business Combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides guidance to entities to assist with evaluating when a set of transferred assets and activities (collectively, the “set”) is a business and provides a screen to determine when a set is not a business. Under the new guidance, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a prospective basis to any transactions occurring within the period of adoption. Early adoption is permitted for interim or annual periods in which the financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts are as follows: Year Ended December 31, 2018 2017 2016 Allowance for doubtful accounts, beginning of period $ 3,315 $ 7,836 $ 3,729 Charges to costs and expenses 610 81 4,332 Account write-offs and other (1,160 ) (4,602 ) (225 ) Allowance for doubtful accounts, end of period $ 2,765 $ 3,315 $ 7,836 |
Estimated Useful Lives of Property and Equipment | Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited Property and equipment consists of the following: December 31, 2018 2017 Furniture and office equipment $ 6,118 $ 5,846 Computer equipment and software costs 23,781 21,457 Leasehold improvements 3,990 3,255 Automobiles 1,373 1,181 Land 1,454 1,498 Property and equipment, gross 36,716 33,237 Less - accumulated depreciation (29,731 ) (27,934 ) Property and equipment, net $ 6,985 $ 5,303 |
Schedule of Sale Leaseback Transactions | A summary of amounts related to sale leasebacks in the Company’s consolidated balance sheets is as follows: December 31, December 31, 2018 2017 Capital lease assets, net $ 38,263 $ 36,676 Deferred loss, short-term, net 115 118 Deferred loss, long-term, net 1,917 2,054 Total deferred loss $ 2,032 $ 2,172 Capital lease liabilities, short-term 4,956 4,157 Capital lease liabilities, long-term 28,407 30,712 Total capital lease liabilites $ 33,363 $ 34,869 Deferred gain, short-term, net 345 338 Deferred gain, long-term, net 5,808 5,835 Total deferred gain $ 6,153 $ 6,173 ee below for a summary of solar PV project sales by fiscal year: Year Ended # Solar PV Projects Sold (actual #’s) Sale Price Deferred Gain Recorded Deferred Loss Recorded Capital Lease Asset/Liability Recorded Initial Lease Term (years) Minimum Lease Payment Maximum Lease Payment Year-ended December 31, 2016 6 $ 17,045 $ 906 $ 145 $ 8,830 20-25 $ 2 $ 397 Year-ended December 31, 2017 13 $ 51,204 $ 4,625 $ 1,204 $ 22,934 10-20 $ 4 $ 510 Year-ended December 31, 2018 2 $ 5,145 $ 574 $ — $ 2,625 20 $ 3 $ 144 |
Basic and Diluted Earnings Per Share Calculation, Numerator and Denominator | When the effects are not anti-dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares; the dilutive effect of convertible preferred stock, under the “if converted” method; and the treasury stock method with regard to warrants and stock options; all as determined under the treasury stock method. Year Ended December 31, 2018 2017 2016 Net income attributable to common shareholders $ 37,984 $ 37,491 $ 12,032 Basic weighted-average shares outstanding 45,729 45,509 46,409 Effect of dilutive securities: Stock options 1,102 239 84 Diluted weighted-average shares outstanding 46,831 45,748 46,493 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Impact of Adoption to our Condensed Consolidated Statements of Income and Balance Sheets | The Company recorded a net decrease to beginning retained earnings of $4,454 on January 1, 2018 due to the cumulative impact of adopting Topic 606, as detailed below. January 1, 2018 As Reported 606 Adjustments Adjusted Balances Assets: Costs and estimated earnings in excess of billings 104,852 $ (9,194 ) $ 95,658 Prepaid expenses and other current assets 14,037 4,343 18,380 Deferred income taxes, net — 1,003 1,003 Liabilities: Accrued expenses and other current liabilities 23,260 1,190 24,450 Deferred income taxes, net 584 (584 ) — Shareholders' Equity: Retained earnings 235,844 (4,454 ) 231,390 In accordance with Topic 606, the disclosure of the impact of adoption to the Company’s consolidated statements of income (loss) and balance sheets was as follows: Impact of changes in accounting policies 12/31/2018 As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Revenues $ 787,138 $ 784,316 $ 2,822 Cost of revenues 613,526 610,229 3,297 Gross profit 173,612 174,087 (475 ) Operating expenses: Selling, general and administrative expenses 114,513 114,513 — Operating income 59,099 59,574 (475 ) Other expenses, net 16,709 16,709 — Income before provision for income taxes 42,390 42,865 (475 ) Income tax provision 4,813 4,998 (185 ) Net income 37,577 37,867 (290 ) Net income attributable to redeemable non-controlling interests 407 407 — Net income attributable to common shareholders $ 37,984 $ 38,274 $ (290 ) Basic income per share $ 0.83 $ 0.84 $ (0.01 ) Diluted income per share $ 0.81 $ 0.82 $ (0.01 ) December 31, 2018 As Reported Balances without adoption of Topic 606 Effect of Change Higher/(Lower) Assets: Costs and estimated earnings in excess of billings $ 86,842 $ 93,214 $ (6,372 ) Prepaid expenses and other current assets 11,571 10,644 927 Liabilities: Accrued expenses and other current liabilities 35,947 34,877 1,070 Deferred income taxes, net 4,352 6,123 (1,771 ) Shareholders' Equity: Retained earnings 269,806 274,550 (4,744 ) |
Summary of Disaggregation of Revenue | The following table provides information about disaggregated revenue by line of business, reportable segments, and geographical region for the year ended December 31, 2018 . US Regions U.S. Federal Canada Non-Solar DG All Other Total Line of Business Year ended December 31, 2018 Project revenue $ 296,226 $ 202,286 $ 29,571 $ 4,550 $ 12,420 $ 545,053 O&M revenue 17,814 39,250 37 8,135 — 65,236 Energy assets 18,442 4,062 2,604 69,599 1,069 95,776 Other 1,862 711 6,770 371 71,359 81,073 Total revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 Geographical Regions Year ended December 31, 2018 United States $ 334,344 $ 246,309 $ 2,557 $ 82,655 $ 68,883 $ 734,748 Canada — — 36,425 — 303 36,728 Other — — — — 15,662 15,662 Total revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 |
Summary of Contract Balances | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: January 1, 2018 December 31, 2018 Accounts receivable, net $ 85,121 $ 85,985 Accounts receivable retainage, net 17,484 13,516 Contract Assets: Costs and estimated earnings in excess of billings 95,658 86,842 Contract Liabilities: Billings in excess of cost and estimated earnings 27,248 30,706 |
Business Acquisitions and Rel_2
Business Acquisitions and Related Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation by Acquisitions | A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective year is as follows: 2018 2017 2016 Accounts receivable $ 1,015 $ — $ — Prepaid expenses and other current assets 12 256 263 Property and equipment and energy assets — 7,788 12,815 Intangibles 680 — — Goodwill 2,845 — — Accounts payable 67 — — Purchase price $ 4,619 $ 8,044 $ 13,078 Total, net of cash received $ 4,619 $ 8,044 $ 13,078 Debt assumed $ — $ 5,635 $ 9,503 Total fair value of consideration $ 4,619 $ 2,409 $ 3,575 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill attributable to each reportable segment are as follows: U.S. Regions U.S. Federal Canada Other Total Balance, December 31, 2016 $ 24,759 $ 3,375 $ 3,262 $ 26,580 $ 57,976 Sale of assets of a business — — — (2,639 ) (2,639 ) Currency effects — — 232 566 798 Balance, December 31, 2017 24,759 3,375 3,494 24,507 56,135 Goodwill acquired during the year 1,611 1,234 — — 2,845 Currency effects — — (277 ) (371 ) (648 ) Balance, December 31, 2018 $ 26,370 $ 4,609 $ 3,217 $ 24,136 $ 58,332 Accumulated Goodwill Impairment Balance, December 31, 2017 $ — $ — $ (1,016 ) $ — $ (1,016 ) Accumulated Goodwill Impairment Balance, December 31, 2018 $ — $ — $ (1,016 ) $ — $ (1,016 ) |
Schedule of Intangible Assets, Net | he gross carrying amount and accumulated amortization of intangible assets are as follows: As of December 31, 2018 2017 Gross Carrying Amount Customer contracts $ 7,818 $ 7,786 Customer relationships 12,082 11,863 Non-compete agreements 3,013 3,052 Technology 2,710 2,751 Trade names 541 546 26,164 25,998 Accumulated Amortization Customer contracts 7,668 7,786 Customer relationships 10,302 9,557 Non-compete agreements 3,013 3,048 Technology 2,651 2,642 Trade names 526 525 24,160 23,558 Intangible assets, net $ 2,004 $ 2,440 Amortization expense for the years ended December 31, 2018 , 2017 and 2016 is as follows: Year Ended December 31, 2018 2017 2016 Customer contracts $ 30 $ 31 $ 184 Customer relationships 973 1,244 1,809 Non-compete agreements 3 42 116 Technology 47 128 238 Trade names 4 6 11 Total intangible amortization expense $ 1,057 $ 1,451 $ 2,358 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years is as follows: Estimated Amortization Included in Selling, General and Administrative Expenses 2019 $ 844 2020 620 2021 247 2022 75 2023 66 Thereafter 152 $ 2,004 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited Property and equipment consists of the following: December 31, 2018 2017 Furniture and office equipment $ 6,118 $ 5,846 Computer equipment and software costs 23,781 21,457 Leasehold improvements 3,990 3,255 Automobiles 1,373 1,181 Land 1,454 1,498 Property and equipment, gross 36,716 33,237 Less - accumulated depreciation (29,731 ) (27,934 ) Property and equipment, net $ 6,985 $ 5,303 |
Energy Assets (Tables)
Energy Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Summary of Energy Assets | Energy assets consist of the following: December 31, 2018 2017 Energy assets $ 619,708 $ 488,818 Less - accumulated depreciation and amortization (159,756 ) (132,375 ) Energy assets, net $ 459,952 $ 356,443 |
Schedule of Capital Leased Assets | Included in energy assets are capital lease assets and accumulated depreciation of capital lease assets. Capital lease assets consist of the following: December 31, 2018 2017 Capital lease assets $ 42,402 $ 38,725 Less - accumulated depreciation and amortization (4,139 ) (2,049 ) Capital lease assets, net $ 38,263 $ 36,676 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | Long-term debt comprised the following: Commencement Date Maturity Date Acceleration Clause (2) Rate as of December 31, Balance as of December 31, 2018 2018 2017 Senior secured credit facility, interest at varying rates monthly in arrears June 2015 June 2020 NA 4.710 % $ 43,074 $ 49,986 Variable rate term loan payable in semi-annual installments January 2006 February 2021 Yes 5.047 % 936 1,220 Variable rate term loan payable in semi-annual installments January 2006 June 2024 Yes 4.797 % 7,426 8,295 Variable rate term loan payable in quarterly installments February 2009 December 2024 NA NA — 8,757 Term loan payable in quarterly installments March 2011 March 2021 Yes 7.250 % 1,464 2,218 Term loan payable in monthly installments October 2011 June 2028 NA 6.110 % 3,843 4,551 Variable rate term loan payable in quarterly installments October 2012 June 2020 NA 6.297 % 30,674 32,711 Variable rate term loan payable in quarterly installments September 2015 March 2023 NA 5.297 % 17,208 18,346 Term loan payable in quarterly installments August 2016 July 2031 NA 4.950 % 3,925 4,605 Term loan payable in quarterly installments March 2017 March 2028 NA 5.000 % 3,945 4,258 Term loan payable in monthly installments (3) April 2017 April 2027 NA 4.500 % 22,081 13,325 Term loan payable in quarterly installments April 2017 February 2034 NA 5.610 % 2,735 3,128 Variable rate term loan payable in quarterly installments June 2017 December 2027 NA 5.247 % 12,915 14,034 Variable rate term loan payable in quarterly installments February 2018 August 2022 Yes 10.297 % 21,475 — Term loan payable in quarterly installments June 2018 December 2038 Yes 5.150 % 30,069 — Variable rate term loan payable in semi-annual installments June 2018 June 2033 Yes 4.847 % 9,668 — Variable rate construction loan payable November 2016 June 2018 NA NA — 1,721 Variable rate term loan payable in monthly/quarterly installments October 2018 October 2029 Yes 5.020 % 9,072 — Capital leases (1) 33,363 35,013 253,873 202,168 Less - current maturities 26,890 22,375 Less - deferred financing fees 7,821 6,556 Long-term debt $ 219,162 $ 173,237 (1) Capital leases do not include approximately $25,305 in future interest payments (2) These agreements have acceleration causes that, in the event of default, as defined, the payee has the option to accelerate payment terms and make due the remaining principal and the required interest balance according to the agreement (3) As of December 31, 2018, this construction loan has an additional $2,742 commitment that could be drawn upon |
Schedule of Aggregate Maturities of Long-Term Debt | Aggregate maturities of long-term debt for the years ended December 31, are as follows: 2019 $ 26,890 2020 85,685 2021 18,573 2022 27,810 2023 27,518 Thereafter 69,955 Debt Discount (2,558 ) $ 253,873 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Income Taxes | The components of income before income taxes are as follows: Year Ended December 31, 2018 2017 2016 Domestic $ 46,542 $ 29,792 $ 19,874 Foreign (4,152 ) (1,075 ) (3,507 ) Income before (benefit) provision for income taxes $ 42,390 $ 28,717 $ 16,367 |
Income Tax Provision (Benefit) | The components of the (benefit) provision for income taxes are as follows: Year Ended December 31, 2018 2017 2016 Current: Federal $ (1,888 ) $ (1,055 ) $ 1,304 State 1,176 671 303 Foreign 30 161 (106 ) (682 ) (223 ) 1,501 Deferred: Federal 2,662 (6,683 ) 2,341 State 2,530 1,853 106 Foreign 303 262 422 5,495 (4,568 ) 2,869 $ 4,813 $ (4,791 ) $ 4,370 |
Deferred Income Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following: December 31, 2018 2017 Deferred tax assets: Compensation accruals $ 3,489 $ 3,042 Reserves 2,940 2,149 Other 127 — Net operating losses 10,010 10,099 Interest rate swaps 666 866 Energy efficiency 28,911 22,716 Interest limitation 3,292 — Deferred revenue 1,943 815 Gross deferred income tax assets 51,378 39,687 Valuation allowance (7,931 ) (7,534 ) Total deferred income tax assets $ 43,447 $ 32,153 Deferred tax liabilities: Depreciation $ (37,107 ) $ (24,178 ) Deferred effect of derivative liability and ASU 2016-09 adoption (475 ) — Canadian capital cost, allowance and amortization (1,974 ) (3,156 ) United Kingdom goodwill amortization (755 ) (802 ) Outside basis difference (7,488 ) (4,408 ) Other — (193 ) Total deferred income tax liabilities (47,799 ) (32,737 ) Deferred income tax liabilities, net $ (4,352 ) $ (584 ) |
Reconciliation of Effective Tax Rates | The following is a reconciliation of the effective tax rates: Year Ended December 31, 2018 2017 2016 Income before (benefit) provision for income taxes $ 42,390 $ 28,717 $ 16,367 Federal statutory tax expense $ 8,902 $ 10,048 $ 5,728 State income taxes, net of Federal benefit 3,071 1,584 678 Net state impact of deferred rate change 174 327 (110 ) Non deductible expenses 982 1,473 670 Impact of reserve for uncertain tax positions 879 42 (411 ) Stock-based compensation expense (441 ) 116 306 Energy efficiency preferences (8,636 ) (6,416 ) (4,130 ) Foreign items and rate differential (41 ) 139 516 Tax rate change — (13,948 ) — Valuation allowance 641 424 213 Miscellaneous (718 ) 1,420 910 $ 4,813 $ (4,791 ) $ 4,370 Effective tax rate: Federal statutory rate expense 21.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit 7.2 % 5.5 % 4.1 % Net state impact of deferred rate change 0.4 % 1.1 % (0.7 )% Non deductible expenses 2.3 % 5.1 % 4.1 % Impact of reserve for uncertain tax positions 2.1 % 0.1 % (2.5 )% Stock-based compensation expense (1.0 )% 0.4 % 1.9 % Energy efficiency preferences (20.4 )% (22.3 )% (25.2 )% Foreign items and rate differential (0.1 )% 0.5 % 3.2 % Tax rate change — % (48.6 )% — % Valuation allowance 1.5 % 1.5 % 1.3 % Miscellaneous (1.6 )% 4.9 % 5.5 % 11.4 % (16.7 )% 26.7 % |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Year Ended December 31, 2018 2017 Balance, beginning of year $ 600 $ 600 Additions for current year tax positions 300 Additions for prior year tax positions 900 — Settlements paid to tax authorities — — Reductions of prior year tax positions (200 ) — Balance, end of year $ 1,600 $ 600 |
Investment Funds (Tables)
Investment Funds (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | A summary of amounts related to the investment funds in the Company’s consolidated balance sheets for the years ending December 31, 2018 and 2017 is as follows: 2018 (1) 2017 (1) Cash $ 1,255 $ 444 Restricted cash 156 155 Accounts receivable 374 328 Costs and estimated earnings in excess of billings 498 360 Prepaid expenses and other current assets 190 8 Energy assets, net 122,641 55,712 Other assets 1,613 1,398 Accounts payable 234 764 Accrued liabilities 4,146 74 Other liabilities — 75 Current portions of long-term 1,712 — Long-term debt, net of deferred financing costs 26,461 — Other long-term liabilities 2,131 — (1) The amounts in the above table are reflected in parenthetical references on the Company’s consolidated balance sheet. See the Company’s consolidated balance sheet for additional information. |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes the collective activity under the 2000 Plan and the 2010 Plan: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 4,139 $ 7.740 Granted (1) 665 4.703 Exercised (321 ) 3.286 Forfeited (194 ) 8.154 Expired (318 ) 11.293 Outstanding at December 31, 2016 3,971 7.300 Granted (1) 390 6.061 Exercised (401 ) 4.935 Forfeited (41 ) 6.421 Expired (85 ) 10.157 Outstanding at December 31, 2017 3,834 7.367 Granted (1) 518 10.878 Exercised (909 ) 7.367 Forfeited (87 ) 4.726 Expired (51 ) 9.146 Outstanding at December 31, 2018 3,305 $ 8.050 4.99 $ 20,120 Options exercisable at December 31, 2018 1,926 $ 8.824 2.87 $ 10,237 Expected to vest at December 31, 2018 1,379 $ 6.970 7.94 $ 9,883 (1) Grants are related to the 2010 Plan. |
Schedule of Stock Options Valuation Assumptions | The following table sets forth the significant assumptions used in the model during 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Expected dividend yield —% —% —% Risk-free interest rate 2.71%-3.00% 1.96%-2.36% 1.16%-1.77% Expected volatility 43%-45% 46% 46%-49% Expected life 6.5 years 6.5 years 6.5-10 years |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Company's Lease Obligations | The Company’s estimated minimum future lease obligations under operating leases are as follows: Operating Leases Year ended December 31, 2019 $ 7,917 2020 7,265 2021 5,833 2022 5,357 2023 3,873 Thereafter 17,348 Total minimum lease payments $ 47,593 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Composition of Assets and Revenues by Geographic Locations | The Company attributes revenues to customers based on the location of the customer. Information as to the Company’s operations in different geographical areas is as follows: December 31, 2018 2017 Long-lived assets: United States $ 443,385 $ 343,344 Canada 22,107 17,082 Other 1,445 1,320 Total long-lived assets $ 466,937 $ 361,746 Year Ended December 31, 2018 2017 2016 Revenues: United States $ 734,748 $ 665,793 $ 588,791 Canada 36,728 42,186 49,706 Other 15,662 9,173 12,730 Total revenues $ 787,138 $ 717,152 $ 651,227 |
Other Expenses, Net (Tables)
Other Expenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expenses, Net | The components of other expenses, net, are as follows: Year Ended December 31, 2018 2017 2016 Gain on derivatives $ (121 ) $ (271 ) $ (279 ) Interest expense, net of interest income 13,132 8,086 6,510 Amortization of deferred financing fees, net 1,894 1,350 1,173 Foreign currency transaction (gain) loss 1,804 (1,294 ) 5 Other expenses, net $ 16,709 $ 7,871 $ 7,409 |
Schedule of Estimated Amortization Expense for the Next Five Years | Estimated amortization expense for existing deferred financing fees for the next five succeeding fiscal years is as follows: Estimated Amortization 2019 $ 1,774 2020 1,061 2021 781 2022 671 2023 487 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Fair Value by Balance Sheet Grouping | The following table presents the input level used to determine the fair values of the Company’s financial instruments measured at fair value on a recurring basis: Fair Value as of December 31, Level 2018 2017 Assets: Interest rate swap instruments 2 $ 733 $ 233 Commodity swap instruments 2 33 — Total assets $ 766 $ 233 Liabilities: Interest rate swap instruments 2 $ 3,187 3,529 Commodity swap instruments 2 70 — Interest make-whole provisions 2 1,808 — Contingent consideration liabilities 3 962 — Total liabilities $ 6,027 $ 3,529 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth a summary of changes in fair value of contingent liabilities classified as Level 3 for the year ended December 31, 2018: Year Ended December 31, 2018 Contingent consideration liabilities balance at the beginning of year $ — Contingent consideration issued in connection with acquisitions 918 Loss on change in fair value 44 Contingent consideration liabilities balance at the end of year $ 962 |
Fair Value and Carrying Value of Long-Term Debt | Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt, excluding capital leases, are as follows: As of December 31, 2018 As of December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Long-term debt value (Level 2) $ 211,823 $ 212,687 $ 160,108 $ 160,598 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Derivative Fair Value | At December 31, 2018 and 2017 , the following table presents information about the fair value amounts of the Company’s derivative instruments: Derivatives as of December 31, 2018 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 703 Other assets $ 233 Interest rate swap contracts Other liabilities $ 3,187 Other liabilities $ 3,529 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 30 Other assets $ — Commodity swap contracts Other assets $ 33 Other assets $ — Commodity swap contracts Other liabilities $ 70 Other liabilities $ — Interest make-whole provisions Other liabilities $ 1,808 Other liabilities $ — |
Schedule of Derivative Effect on Consolidated Statement of Income (Loss) | The following tables present information about the effects of the Company’s derivative instruments on the consolidated statements of income (loss) and consolidated statements of comprehensive income (loss): Location of (Gain) Loss Recognized in Net Income Amount of (Gain) Loss Recognized in Net Income for the Year Ended December 31, 2018 2017 2016 Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (196 ) $ (271 ) $ (279 ) Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (308 ) $ — $ — Commodity swap contracts Other expenses, net $ 36 $ — $ — Interest make-whole provisions Other expenses, net $ 337 $ — $ — |
Schedule of Derivative Instruments Effect on Comprehensive Income (Loss) | Year Ended December 31, 2018 Derivatives Designated as Hedging Instruments: Accumulated loss in AOCI at the beginning of the period $ (1,745 ) Cumulative impact from the adoption of ASU No. 2017-12 (486 ) Unrealized gain recognized in AOCI 603 Gain reclassified from AOCI to other expenses, net (196 ) Accumulated loss in AOCI at the end of the period $ (1,824 ) |
Schedule of Derivative Instruments | The followings tables present a listing of all the Company’s active derivative instruments as of December 31, 2018 : Active Interest Rate Swap Effective Date Expiration Date Initial Notional Amount ($) Status 11-Year, 5.77% Fixed October 2018 October 2029 $ 9,200 Designated 15-Year, 3.19% Fixed June 2018 June 2033 10,000 Designated 3-Year, 2.46% Fixed March 2018 December 2020 17,100 Not Designated 10-Year, 4.74% Fixed June 2017 December 2027 14,100 Designated 15-Year, 3.26% Fixed February 2023 December 2038 14,084 Designated 7-Year, 2.19% Fixed February 2016 February 2023 20,746 Designated 8-Year, 3.70% Fixed March 2020 June 2028 14,643 Designated 8-Year, 3.70% Fixed March 2020 June 2028 10,734 Designated 8-Year, 1.71% Fixed October 2012 March 2020 9,665 Designated 8-Year, 1.71% Fixed October 2012 March 2020 7,085 Designated 15-Year, 5.30% Fixed February 2006 February 2021 3,256 Designated 15.5-Year, 5.40% Fixed September 2008 March 2024 13,081 Designated Active Commodity Swap Effective Date Expiration Date Initial Notional Amount (Volume) Commodity Measurement Status 1-Year, $2.84 MMBtu Fixed May 2018 April 2019 323,390 MMBtus Not Designated 1-Year, $2.68 MMBtu Fixed May 2019 April 2020 437,004 MMBtus Not Designated 1-Year, $2.70 MMBtu Fixed May 2020 April 2021 435,810 MMBtus Not Designated Other Derivatives Classification Effective Date Expiration Date Fair Value ($) Interest make-whole provisions Liability June/August 2018 December 2038 $ 1,808 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operational Results by Business Segments | An analysis of the Company’s business segment information and reconciliation to the consolidated financial statements is as follows: U.S. Regions U.S. Federal Canada Non-solar DG All Other Total Consolidated 2018 Revenues $ 334,344 $ 246,309 $ 38,982 $ 82,655 $ 84,848 $ 787,138 Interest income 9 126 — 147 — 282 Interest expense 6,188 1,045 1,917 6,172 22 15,344 Depreciation and intangible asset amortization 5,578 2,772 1,155 18,101 1,542 29,148 Unallocated corporate activity — — — — — (30,415 ) Income before taxes, excluding unallocated corporate activity 20,543 36,332 (2,746 ) 13,412 5,264 72,805 2017 Revenues 290,196 229,146 43,803 79,220 74,787 717,152 Interest income 2 44 1 83 — 130 Interest expense 2,672 1,056 1,927 3,389 38 9,082 Depreciation and intangible asset amortization 2,974 2,623 1,178 15,259 1,881 23,915 Unallocated corporate activity — — — — — (27,195 ) Income (loss) before taxes, excluding unallocated corporate activity 13,865 29,261 1,751 8,115 2,920 55,912 2016 Revenues 276,766 178,005 50,448 74,395 71,613 651,227 Interest income 1 11 — 38 — 50 Interest expense 1,055 942 1,737 3,319 23 7,076 Depreciation and intangible asset amortization 1,901 2,588 1,090 14,557 2,628 22,764 Unallocated corporate activity — — — — — (32,225 ) Income (loss) before taxes, excluding unallocated corporate activity 19,802 22,246 (2,330 ) 9,301 (427 ) 48,592 |
Revenue from External Customers by Products and Services | Information as to the Company’s revenues by service and product lines is as follows: Year Ended December 31, 2018 2017 2016 Revenues: Project $ 545,053 $ 506,550 $ 454,200 Energy Assets 95,776 69,241 64,882 O&M 65,236 60,574 63,082 Integrated-PV 41,349 38,796 29,325 Other Services 39,724 41,991 39,738 Total Revenues $ 787,138 $ 717,152 $ 651,227 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Operating Results | The following tables set forth selected unaudited condensed consolidated statement of income (loss) data for each of the most recent eight quarters ended December 31, 2018 . Operating results for any quarter are not necessarily indicative of results for any future period. Three Months Ended, March 31 June 30 September 30 December 31 2018 Revenues $ 167,410 $ 196,982 $ 205,375 $ 217,371 Gross profit $ 35,473 $ 42,776 $ 46,162 $ 49,201 Net income attributable to common shareholders $ 6,988 $ 8,702 $ 10,701 $ 11,593 Net income per share attributable to common shareholders: Basic $ 0.15 $ 0.19 $ 0.23 $ 0.25 Diluted $ 0.15 $ 0.19 $ 0.23 $ 0.24 Weighted average common shares outstanding: Basic 45,373 45,470 45,854 46,114 Diluted 45,994 46,406 46,944 47,327 2017 Revenues $ 134,610 $ 166,665 $ 204,744 $ 211,133 Gross profit $ 25,924 $ 35,408 $ 41,367 $ 41,459 Net income (loss) attributable to common shareholders $ (644 ) $ 5,831 $ 8,493 $ 23,811 Net income (loss) per share attributable to common shareholders: Basic $ (0.01 ) $ 0.13 $ 0.19 $ 0.52 Diluted $ (0.01 ) $ 0.13 $ 0.19 $ 0.52 Weighted average common shares outstanding: Basic 45,514 45,463 45,524 45,537 Diluted 45,514 45,675 45,771 45,957 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Principles of Consolidation (Details) | Dec. 31, 2018fund |
Accounting Policies [Abstract] | |
Investment funds formed to fund the purchase of solar energy systems | 4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Use of Estimates (Details) | 12 Months Ended |
Dec. 31, 2018$ / participant | |
Accounting Policies [Abstract] | |
Maximum exposure, per participant | 100,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||
Restricted cash, noncurrent | $ 19,637 | $ 20,092 | $ 19,920 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts, beginning of period | $ 3,729,000 | $ 3,315,000 | $ 7,836,000 | $ 3,729,000 |
Charges to costs and expenses | 610,000 | 81,000 | 4,332,000 | |
Account write-offs and other | (1,160,000) | (4,602,000) | (225,000) | |
Allowance for doubtful accounts, end of period | 2,765,000 | 3,315,000 | 7,836,000 | |
Accounts receivable retainage reserve | $ 0 | $ 0 | ||
Minimum | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Accounts receivable retainage | 5.00% | |||
Maximum | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Accounts receivable retainage | 10.00% | |||
Operating Segments | Canada | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Interest and debt expense | 1,934,000 | |||
Accounts receivable | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts receivable, period increase | 2,394,000 | |||
Interest and debt expense | 1,655,000 | |||
Costs in Excess of Billings | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts receivable, period increase | 476,000 | |||
Construction in Progress, Gross | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts receivable, period increase | $ 325,000 | |||
Contract Receivable Retainage | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Interest and debt expense | $ 279,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Project Development Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Product development cost included in other long-term assets | $ 639 | $ 2,355 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 5 years |
Computer equipment and software costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 5 years |
Computer equipment and software costs | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 5 years |
Automobiles | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful life | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Energy Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Interest costs capitalized | $ 3,817,000 | $ 4,256,000 | $ 1,253,000 |
Deferred grant income | 6,637,000 | 7,188,000 | |
Rebates from utility company | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Goodwill [Line Items] | |
Intangible assets amortization period | 1 year |
Maximum | |
Goodwill [Line Items] | |
Intangible assets amortization period | 15 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Sales Leaseback (Details) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2018USD ($)project | Dec. 31, 2018USD ($)project | Dec. 31, 2017USD ($)project | Dec. 31, 2016USD ($)project | Sep. 30, 2016USD ($) | |
Sale Leaseback Transaction [Line Items] | |||||
Capital lease assets, net | $ 6,985,000 | $ 5,303,000 | |||
Deferred Gain Recorded | 6,153,000 | 6,173,000 | |||
Deferred Loss Recorded | $ 2,032,000 | $ 2,172,000 | |||
Solar PV project | |||||
Sale Leaseback Transaction [Line Items] | |||||
Maximum combined funding amount | $ 100,000,000 | $ 100,000,000 | |||
Number of projects sold then leased back to separate investor | project | 2 | 1 | |||
Number of Solar PV Projects Sold | project | 2 | 13 | 6 | ||
Sale Price | $ 5,145,000 | $ 51,204,000 | $ 17,045,000 | ||
Deferred Gain Recorded | 574,000 | 4,625,000 | 906,000 | ||
Deferred Loss Recorded | 0 | 1,204,000 | 145,000 | ||
Capital Lease Asset/Liability Recorded | $ 2,625,000 | 22,934,000 | $ 8,830,000 | ||
Percentage of fair value threshold integral equipment | 10.00% | ||||
Net amortization expense (gains) | $ 213,000 | $ (79,000) | |||
Solar PV project | Minimum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Initial Lease Term (years) | 10 years | 20 years | |||
Lease payment | $ 3,000 | $ 4,000 | $ 2,000 | ||
Solar PV project | Maximum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Initial Lease Term (years) | 20 years | 20 years | 25 years | ||
Lease payment | $ 144,000 | $ 510,000 | $ 397,000 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Amounts Related to Sale Leaseback (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Sale Leaseback Transaction [Line Items] | |||
Capital lease assets, net | $ 6,985 | $ 5,303 | |
Total deferred loss | 2,032 | 2,172 | |
Total capital lease liabilites | 33,363 | 34,869 | |
Total deferred gain | 6,153 | 6,173 | |
Solar PV project | |||
Sale Leaseback Transaction [Line Items] | |||
Deferred loss, short-term, net | 115 | 118 | |
Deferred loss, long-term, net | 1,917 | 2,054 | |
Total deferred loss | 0 | 1,204 | $ 145 |
Capital lease liabilities, short-term | 4,956 | 4,157 | |
Capital lease liabilities, long-term | 28,407 | 30,712 | |
Deferred gain, short-term, net | 345 | 338 | |
Deferred gain, long-term, net | 5,808 | 5,835 | |
Total deferred gain | 574 | 4,625 | $ 906 |
Solar PV project | Assets Held under Capital Leases | |||
Sale Leaseback Transaction [Line Items] | |||
Capital lease assets, net | $ 38,263 | $ 36,676 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Operating lease revenue | $ 7,238 | $ 3,409 | $ 3,162 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jan. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income tax assets, net | $ 0 | |
Accounting Standards Update 2016-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred income tax assets, net | $ 4,000 | |
Credit to retained earnings | (4,454) | 4,000 |
Accounting Standards Update 2016-09 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit to retained earnings | $ (4,454) | $ 4,000 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of fixed-rate long-term debt in excess of fair value | $ 864 | |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt value | $ 211,823 | $ 160,108 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2017 | Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Treasury stock, shares, acquired | 218,000 | 575,000 | |||
Treasury stock, value, acquired | $ 1,839,000 | $ 3,412,000 | $ 6,387,000 | ||
Repurchase fees | $ 9,000 | $ 23,000 | |||
Treasury Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Treasury stock, shares, acquired | 217,774 | 574,848 | 1,298,418 | ||
Treasury stock, value, acquired | $ 1,839,000 | $ 3,412,000 | $ 6,387,000 | ||
Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount (up to) | $ 15,000,000 | $ 10,000,000 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||||||||||
Net income attributable to common shareholders | $ 11,593 | $ 10,701 | $ 8,702 | $ 6,988 | $ 23,811 | $ 8,493 | $ 5,831 | $ (644) | $ 37,984 | $ 37,491 | $ 12,032 |
Basic weighted-average shares outstanding (in shares) | 46,114 | 45,854 | 45,470 | 45,373 | 45,537 | 45,524 | 45,463 | 45,514 | 45,729 | 45,509 | 46,409 |
Effect of dilutive securities: | |||||||||||
Stock options (in shares) | 1,102 | 239 | 84 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 47,327 | 46,944 | 46,406 | 45,994 | 45,957 | 45,771 | 45,675 | 45,514 | 46,831 | 45,748 | 46,493 |
Stock options excluded from calculation of dilutive shares as the effect would be anti-dilutive (in shares) | 692 | 2,560 | 3,530 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Derivative Instruments (Details) | 1 Months Ended |
Jul. 31, 2018term_loans | |
Accounting Policies [Abstract] | |
Number term loans that had a related interest rate swap | 1 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Redeemable Non-Controlling Interest (Details) | Dec. 31, 2018fund |
Accounting Policies [Abstract] | |
Investment funds formed to fund the purchase of solar energy systems | 4 |
Summary of Significant Accou_21
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jan. 01, 2018 |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit to retained earnings | $ 4,454 | |
Accounting Standards Update 2014-09 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit to retained earnings | 4,454 | |
Accounting Standards Update 2017-12 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit to retained earnings | (54) | |
Accounting Standards Update 2017-12 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit to retained earnings | 432 | |
Nonoperating Income (Expense) | Accounting Standards Update 2017-12 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Credit to retained earnings | $ 54 | |
Scenario, Forecast | Minimum | Subsequent Event | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in net lease assets | $ 30,600 | |
Increase in net lease liabilities | 32,400 | |
Scenario, Forecast | Maximum | Subsequent Event | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in net lease assets | 33,800 | |
Increase in net lease liabilities | $ 35,700 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract with customer, liability, noncurrent | $ 6,342,000 | |
Contract with customer, asset, reclassified to receivable | 510,470,000 | |
Contract with customer, asset, revenue recognized | 485,143,000 | |
Contract with customer, liability, revenue recognized | 95,318,000 | |
Contract with customer, liability, billings | 80,007,000 | |
Revenue, remaining performance obligation | $ 1,660,800,000 | |
Revenue, remaining performance obligation, percentage | 25.00% | |
Capitalized commission costs | $ 927,000 | $ 927,000 |
Impairment charges in connection with the the Company's commissionn costs or project development costs | 0 | |
Capitalized contract cost, project development costs | $ 15,672,000 | |
Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract receivable retainage percentage | 5.00% | |
Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract receivable retainage percentage | 10.00% | |
Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Increase (decrease) in retained earnings | $ 4,454,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Impact of Adoption (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Assets: | ||||||||||||
Costs and estimated earnings in excess of billings | $ 86,842 | $ 104,852 | $ 86,842 | $ 104,852 | $ 104,852 | |||||||
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $8, respectively) | 11,571 | 14,037 | 11,571 | 14,037 | 14,037 | |||||||
Deferred income taxes, net | 0 | |||||||||||
Liabilities: | ||||||||||||
Accrued expenses and other current liabilities (including amounts in VIEs of $4,233 and $149, respectively) | 35,947 | 23,260 | 35,947 | 23,260 | 23,260 | |||||||
Deferred income taxes, net | 4,352 | 4,352 | 584 | |||||||||
Shareholders' Equity: | ||||||||||||
Retained earnings | 269,806 | 235,844 | 269,806 | 235,844 | 235,844 | |||||||
Income Statement [Abstract] | ||||||||||||
Revenues | 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | 787,138 | 717,152 | $ 651,227 | |
Cost of revenues | 613,526 | 572,994 | 516,883 | |||||||||
Gross profit | 49,201 | 46,162 | 42,776 | 35,473 | 41,459 | 41,367 | 35,408 | 25,924 | 173,612 | 144,158 | 134,344 | |
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 114,513 | 107,570 | 110,568 | |||||||||
Operating income | 59,099 | 36,588 | 23,776 | |||||||||
Other expenses, net | 16,709 | 7,871 | 7,409 | |||||||||
Income before (benefit) provision for income taxes | 42,390 | 28,717 | 16,367 | |||||||||
Income tax (benefit) provision | 4,813 | (4,791) | 4,370 | |||||||||
Net income | 37,577 | 33,508 | 11,997 | |||||||||
Net loss attributable to redeemable non-controlling interest | 407 | 3,983 | 35 | |||||||||
Net income attributable to common shareholders | $ 11,593 | $ 10,701 | $ 8,702 | $ 6,988 | $ 23,811 | $ 8,493 | $ 5,831 | $ (644) | $ 37,984 | $ 37,491 | $ 12,032 | |
Basic income per share (in usd per share) | $ 0.25 | $ 0.23 | $ 0.19 | $ 0.15 | $ 0.52 | $ 0.19 | $ 0.13 | $ (0.01) | $ 0.83 | $ 0.82 | $ 0.26 | |
Diluted income per share (in usd per share) | $ 0.24 | $ 0.23 | $ 0.19 | $ 0.15 | $ 0.52 | $ 0.19 | $ 0.13 | $ (0.01) | $ 0.81 | $ 0.82 | $ 0.26 | |
Balances without adoption of Topic 606 | ||||||||||||
Assets: | ||||||||||||
Costs and estimated earnings in excess of billings | $ 93,214 | $ 93,214 | 95,658 | |||||||||
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $8, respectively) | 10,644 | 10,644 | 18,380 | |||||||||
Deferred income taxes, net | 1,003 | |||||||||||
Liabilities: | ||||||||||||
Accrued expenses and other current liabilities (including amounts in VIEs of $4,233 and $149, respectively) | 34,877 | 34,877 | 24,450 | |||||||||
Deferred income taxes, net | 6,123 | 6,123 | 0 | |||||||||
Shareholders' Equity: | ||||||||||||
Retained earnings | 274,550 | 274,550 | 231,390 | |||||||||
Income Statement [Abstract] | ||||||||||||
Revenues | 784,316 | |||||||||||
Cost of revenues | 610,229 | |||||||||||
Gross profit | 174,087 | |||||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 114,513 | |||||||||||
Operating income | 59,574 | |||||||||||
Other expenses, net | 16,709 | |||||||||||
Income before (benefit) provision for income taxes | 42,865 | |||||||||||
Income tax (benefit) provision | 4,998 | |||||||||||
Net income | 37,867 | |||||||||||
Net loss attributable to redeemable non-controlling interest | 407 | |||||||||||
Net income attributable to common shareholders | $ 38,274 | |||||||||||
Basic income per share (in usd per share) | $ 0.84 | |||||||||||
Diluted income per share (in usd per share) | $ 0.82 | |||||||||||
606 Adjustments | ||||||||||||
Assets: | ||||||||||||
Costs and estimated earnings in excess of billings | (6,372) | $ (6,372) | (9,194) | |||||||||
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $8, respectively) | 927 | 927 | 4,343 | |||||||||
Deferred income taxes, net | 1,003 | |||||||||||
Liabilities: | ||||||||||||
Accrued expenses and other current liabilities (including amounts in VIEs of $4,233 and $149, respectively) | 1,070 | 1,070 | 1,190 | |||||||||
Deferred income taxes, net | (1,771) | (1,771) | (584) | |||||||||
Shareholders' Equity: | ||||||||||||
Retained earnings | $ (4,744) | (4,744) | $ (4,454) | |||||||||
Income Statement [Abstract] | ||||||||||||
Revenues | 2,822 | |||||||||||
Cost of revenues | 3,297 | |||||||||||
Gross profit | (475) | |||||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 0 | |||||||||||
Operating income | (475) | |||||||||||
Other expenses, net | 0 | |||||||||||
Income before (benefit) provision for income taxes | (475) | |||||||||||
Income tax (benefit) provision | (185) | |||||||||||
Net income | (290) | |||||||||||
Net loss attributable to redeemable non-controlling interest | 0 | |||||||||||
Net income attributable to common shareholders | $ (290) | |||||||||||
Basic income per share (in usd per share) | $ (0.01) | |||||||||||
Diluted income per share (in usd per share) | $ (0.01) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | $ 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | $ 787,138 | $ 717,152 | $ 651,227 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 734,748 | 665,793 | 588,791 | ||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 36,728 | $ 42,186 | $ 49,706 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 15,662 | ||||||||||
Project revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 545,053 | ||||||||||
O&M revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 65,236 | ||||||||||
Energy assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 95,776 | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 81,073 | ||||||||||
U.S. Regions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 334,344 | ||||||||||
U.S. Regions | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 334,344 | ||||||||||
U.S. Regions | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
U.S. Regions | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
U.S. Regions | Project revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 296,226 | ||||||||||
U.S. Regions | O&M revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 17,814 | ||||||||||
U.S. Regions | Energy assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 18,442 | ||||||||||
U.S. Regions | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,862 | ||||||||||
U.S. Federal | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 246,309 | ||||||||||
U.S. Federal | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 246,309 | ||||||||||
U.S. Federal | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
U.S. Federal | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
U.S. Federal | Project revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 202,286 | ||||||||||
U.S. Federal | O&M revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 39,250 | ||||||||||
U.S. Federal | Energy assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,062 | ||||||||||
U.S. Federal | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 711 | ||||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 38,982 | ||||||||||
Canada | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,557 | ||||||||||
Canada | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 36,425 | ||||||||||
Canada | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Canada | Project revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 29,571 | ||||||||||
Canada | O&M revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 37 | ||||||||||
Canada | Energy assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,604 | ||||||||||
Canada | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6,770 | ||||||||||
Non-Solar DG | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 82,655 | ||||||||||
Non-Solar DG | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 82,655 | ||||||||||
Non-Solar DG | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Non-Solar DG | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Non-Solar DG | Project revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,550 | ||||||||||
Non-Solar DG | O&M revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 8,135 | ||||||||||
Non-Solar DG | Energy assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 69,599 | ||||||||||
Non-Solar DG | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 371 | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 84,848 | ||||||||||
Other | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 68,883 | ||||||||||
Other | Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 303 | ||||||||||
Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 15,662 | ||||||||||
Other | Project revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 12,420 | ||||||||||
Other | O&M revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Other | Energy assets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,069 | ||||||||||
Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 71,359 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net (including amounts in VIEs of $374 and $328, respectively) | $ 85,985 | $ 85,121 | |
Accounts receivable retainage, net | 13,516 | 17,484 | |
Contract Assets: | |||
Costs and estimated earnings in excess of billings | 86,842 | $ 104,852 | $ 104,852 |
Contract Liabilities: | |||
Billings in excess of cost and estimated earnings | 30,706 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net (including amounts in VIEs of $374 and $328, respectively) | 85,121 | ||
Accounts receivable retainage, net | 17,484 | ||
Contract Assets: | |||
Costs and estimated earnings in excess of billings | $ 93,214 | 95,658 | |
Contract Liabilities: | |||
Billings in excess of cost and estimated earnings | $ 27,248 |
Business Acquisitions and Rel_3
Business Acquisitions and Related Transactions - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017USD ($)project | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)projectdeveloper | Dec. 31, 2017USD ($) | Dec. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |||||
Loss on change in fair value | $ 44,000 | ||||
Measurement period adjustment, recorded as a reduction to goodwill | $ 2,639,000 | ||||
Number of developers current year solar projects were purchased from | developer | 2 | ||||
Undisclosed Name of Acquiree One | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration | $ 2,326,000 | ||||
Initial cash payment | $ 1,901,000 | ||||
Contingent consideration, liability, acquired receivables, payment period | 15 months | ||||
Debt assumed | $ 0 | ||||
Measurement period adjustment, recorded as a reduction to goodwill | 197,000 | ||||
Undisclosed Name of Acquiree Two | |||||
Business Acquisition [Line Items] | |||||
Initial cash payment | 1,691,000 | ||||
Debt assumed | 0 | ||||
Contingent consideration liabilities | $ 2,000,000 | ||||
Contingent consideration, liability, revenue targets, period | 5 years | ||||
Contingent consideration, liability, fair value | $ 599,000 | $ 555,000 | |||
Solar PV project | |||||
Business Acquisition [Line Items] | |||||
Initial cash payment | $ 2,409,000 | $ 3,575,000 | |||
Debt assumed | $ 5,635,000 | $ 9,503,000 | |||
Number of projects acquired | project | 2 | ||||
Solar Projects 2018 | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration | 72,921,000 | ||||
Initial cash payment | 62,116,000 | ||||
Contingent consideration liabilities | $ 5,437,000 | ||||
Number of projects acquired | project | 12 | ||||
Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets amortization period | 1 year | ||||
Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets amortization period | 15 years | ||||
Scenario, Plan | |||||
Business Acquisition [Line Items] | |||||
Number of projects acquired | project | 6 | ||||
Scenario, Plan | Solar Projects 2018 | |||||
Business Acquisition [Line Items] | |||||
Number of projects acquired | project | 6 |
Business Acquisitions and Rel_4
Business Acquisitions and Related Transactions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 58,332 | $ 56,135 | $ 57,976 |
Total, net of cash received | 3,590 | 2,409 | 3,575 |
Solar Photovoltaic Projects And EEX | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 1,015 | ||
Prepaid expenses and other current assets | 12 | 256 | 263 |
Property and equipment and energy assets | 0 | 7,788 | 12,815 |
Intangibles | 680 | ||
Goodwill | 2,845 | ||
Accounts payable | 67 | ||
Purchase price | 4,619 | 8,044 | 13,078 |
Total, net of cash received | 4,619 | 8,044 | 13,078 |
Debt assumed | 0 | 5,635 | 9,503 |
Total fair value of consideration | $ 4,619 | $ 2,409 | $ 3,575 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 56,135 | $ 57,976 |
Sale of assets of a business | (2,639) | |
Currency effects | (648) | 798 |
Goodwill acquired during the year | 2,845 | |
Ending Balance | 58,332 | 56,135 |
Goodwill impairment | (1,016) | (1,016) |
U.S. Regions | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 24,759 | 24,759 |
Sale of assets of a business | 0 | |
Goodwill acquired during the year | 1,611 | |
Ending Balance | 26,370 | 24,759 |
Goodwill impairment | 0 | 0 |
U.S. Federal | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3,375 | 3,375 |
Sale of assets of a business | 0 | |
Goodwill acquired during the year | 1,234 | |
Ending Balance | 4,609 | 3,375 |
Goodwill impairment | 0 | 0 |
Canada | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3,494 | 3,262 |
Sale of assets of a business | 0 | |
Currency effects | (277) | 232 |
Goodwill acquired during the year | 0 | |
Ending Balance | 3,217 | 3,494 |
Goodwill impairment | (1,016) | (1,016) |
Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 24,507 | 26,580 |
Sale of assets of a business | (2,639) | |
Currency effects | (371) | 566 |
Goodwill acquired during the year | 0 | |
Ending Balance | 24,136 | 24,507 |
Goodwill impairment | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Goodwill | $ 58,332,000 | 56,135,000 | 57,976,000 |
Minimum | |||
Goodwill [Line Items] | |||
Percent of goodwill fair value that exceeds carrying value | 20.00% | ||
Intangible assets amortization period | 1 year | ||
Minimum | Customer contracts | |||
Goodwill [Line Items] | |||
Intangible assets amortization period | 1 year | ||
Minimum | Customer relationships, noncompete agreements, technology and trade names | |||
Goodwill [Line Items] | |||
Intangible assets amortization period | 4 years | ||
Maximum | |||
Goodwill [Line Items] | |||
Intangible assets amortization period | 15 years | ||
Maximum | Customer contracts | |||
Goodwill [Line Items] | |||
Intangible assets amortization period | 8 years | ||
Maximum | Customer relationships, noncompete agreements, technology and trade names | |||
Goodwill [Line Items] | |||
Intangible assets amortization period | 15 years | ||
Canada | |||
Goodwill [Line Items] | |||
Goodwill | $ 3,217,000 | 3,494,000 | 3,262,000 |
U.S. Regions | |||
Goodwill [Line Items] | |||
Goodwill | $ 26,370,000 | $ 24,759,000 | $ 24,759,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 26,164 | $ 25,998 |
Accumulated Amortization | 24,160 | 23,558 |
Intangible assets, net | 2,004 | 2,440 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,818 | 7,786 |
Accumulated Amortization | 7,668 | 7,786 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,082 | 11,863 |
Accumulated Amortization | 10,302 | 9,557 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,013 | 3,052 |
Accumulated Amortization | 3,013 | 3,048 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,710 | 2,751 |
Accumulated Amortization | 2,651 | 2,642 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 541 | 546 |
Accumulated Amortization | $ 526 | $ 525 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 1,057 | $ 1,451 | $ 2,358 |
Customer contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 30 | 31 | 184 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 973 | 1,244 | 1,809 |
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 3 | 42 | 116 |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 47 | 128 | 238 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 4 | $ 6 | $ 11 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 2,004 | $ 2,440 |
Included in Selling, General and Administrative Expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | 844 | |
2,020 | 620 | |
2,021 | 247 | |
2,022 | 75 | |
2,023 | 66 | |
Thereafter | 152 | |
Intangible assets, net | $ 2,004 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 36,716 | $ 33,237 | |
Less - accumulated depreciation | (29,731) | (27,934) | |
Property and equipment, net | 6,985 | 5,303 | |
Depreciation of property and equipment | 2,167 | 2,394 | $ 3,020 |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,118 | 5,846 | |
Computer equipment and software costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 23,781 | 21,457 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,990 | 3,255 | |
Automobiles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,373 | 1,181 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,454 | $ 1,498 |
Energy Assets - Additional Info
Energy Assets - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)projectdeveloper | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Energy assets, net | $ 459,952,000 | $ 356,443,000 | |
Capital lease assets | 42,402,000 | 38,725,000 | |
Less - accumulated depreciation and amortization | (4,139,000) | (2,049,000) | |
Capital lease assets, net | 38,263,000 | 36,676,000 | |
Project asset depreciation | 27,305,000 | 21,648,000 | $ 19,377,000 |
Depreciation and amortization expense on capital lease assets | $ 2,090,000 | 1,305,000 | $ 570,000 |
Number of developers current year solar projects were purchased from | developer | 2 | ||
Asset retirement obligation, project assets | $ 897,000 | ||
Asset retirement obligation | 897,000 | 0 | |
Renewal Energy Program | |||
Property, Plant and Equipment [Line Items] | |||
Energy assets | 619,708,000 | 488,818,000 | |
Less - accumulated depreciation and amortization | (159,756,000) | (132,375,000) | |
Energy assets, net | $ 459,952,000 | $ 356,443,000 | |
Solar Projects 2018 | |||
Property, Plant and Equipment [Line Items] | |||
Number of projects acquired | project | 12 | ||
Fair value of consideration | $ 72,921,000 | ||
Contingent consideration liabilities | 5,437,000 | ||
Payments to acquire businesses | $ 62,116,000 | ||
Scenario, Plan | |||
Property, Plant and Equipment [Line Items] | |||
Number of projects acquired | project | 6 | ||
Scenario, Plan | Solar Projects 2018 | |||
Property, Plant and Equipment [Line Items] | |||
Number of projects acquired | project | 6 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Oct. 31, 2018 | Aug. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Amount outstanding | $ 253,873 | $ 202,168 | ||
Less - current maturities | 26,890 | 22,375 | ||
Less - deferred financing fees | 7,821 | 6,556 | ||
Long-term debt | 219,162 | 173,237 | ||
Capital leases | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | 33,363 | 35,013 | ||
Capital leases, future interest payments | $ 25,305 | |||
Variable rate term loan payable in semi-annual installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.047% | |||
Amount outstanding | $ 936 | 1,220 | ||
Variable rate term loan payable in semi-annual installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 4.797% | |||
Amount outstanding | $ 7,426 | 8,295 | ||
Variable rate term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ 0 | 8,757 | ||
Term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 7.25% | |||
Amount outstanding | $ 1,464 | 2,218 | ||
Term loan payable in monthly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.11% | |||
Amount outstanding | $ 3,843 | 4,551 | ||
Variable rate term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 6.297% | |||
Amount outstanding | $ 30,674 | 32,711 | ||
Variable rate term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.297% | |||
Amount outstanding | $ 17,208 | 18,346 | ||
Term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.95% | |||
Amount outstanding | $ 3,925 | 4,605 | ||
Term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.00% | |||
Amount outstanding | $ 3,945 | 4,258 | ||
Term loan payable in monthly installments(3) | Term loan | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.50% | |||
Amount outstanding | $ 22,081 | 13,325 | ||
Construction loan, additional commitment available to be drawn upon | $ 2,742 | |||
Term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.61% | |||
Amount outstanding | $ 2,735 | 3,128 | ||
Variable rate term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.247% | |||
Amount outstanding | $ 12,915 | 14,034 | ||
Variable rate term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 10.297% | |||
Amount outstanding | $ 21,475 | 0 | ||
Term loan payable in quarterly installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.15% | |||
Stated interest rate | 5.15% | |||
Amount outstanding | $ 30,069 | 0 | ||
Variable rate term loan payable in semi-annual installments | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 4.847% | |||
Amount outstanding | $ 9,668 | 0 | ||
Variable rate construction loan payable | Term loan | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ 0 | 1,721 | ||
Variable Rate Term Loan Due In September 2029 | Term loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.02% | 2.50% | ||
Amount outstanding | $ 9,072 | 0 | ||
Senior secured credit facility | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 4.71% | |||
Amount outstanding | $ 43,074 | $ 49,986 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 26,890 | $ 22,375 |
2,020 | 85,685 | |
2,021 | 18,573 | |
2,022 | 27,810 | |
2,023 | 27,518 | |
Thereafter | 69,955 | |
Debt Discount | (2,558) | |
Amount outstanding | $ 253,873 | $ 202,168 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility - Revolver and Term Loan (Details) | Jun. 30, 2015USD ($)bank | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 01, 2017USD ($) | May 31, 2017USD ($) | Nov. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | |||||||
Long-term debt value, carrying value | $ 253,873,000 | $ 202,168,000 | |||||
Remaining borrowing capacity | 72,234,000 | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, number of banks | bank | 2 | ||||||
Additional borrowing capacity (up to) | $ 25,000,000 | ||||||
Current borrowing capacity | $ 85,000,000 | ||||||
Total Funded Debt to EBITDA covenant ratio, maximum | 3 | 2.75 | |||||
Long-term debt value, carrying value | $ 136,000,000 | ||||||
Amount outstanding | $ 1,696,000 | 27,580,000 | |||||
Commitment fee percentage | 0.375% | ||||||
Debt interest rate | 4.52% | ||||||
Periodic principal payment | $ 1,500,000 | ||||||
Maximum amount of Company's consolidated stockholders' equity eligible for investment in or loan to non-core subsidiaries | 0.49 | ||||||
Minimum debt service coverage ratio | 1.5 | ||||||
Revolving Credit Facility | As of the end of each fiscal quarter ending September 30, 2016, December 31, 2016, March 31, 2017 and June 30, 2017 | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum EBITDA requirement | 3 | ||||||
Revolving Credit Facility | Federal Funds Effective Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Revolving Credit Facility | Minimum | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Revolving Credit Facility | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Current borrowing capacity | $ 20,000,000 | ||||||
Revolving Credit Facility | Maximum | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Term loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Additional borrowing capacity (up to) | $ 20,000,000 | ||||||
Current borrowing capacity | 46,000,000 | $ 75,000,000 | $ 60,000,000 | $ 30,000,000 | |||
Term loan | Notes payable to banks | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt value, carrying value | $ 41,500,000 | $ 22,500,000 | |||||
Original principal amount | $ 46,000,000 | ||||||
Debt interest rate | 4.72% | ||||||
Term loan | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Current borrowing capacity | 25,000,000 | ||||||
Line of Credit | Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Current borrowing capacity | $ 85,000,000 | $ 75,000,000 | |||||
Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt value, carrying value | $ 11,070,000 |
Long-Term Debt - Construction a
Long-Term Debt - Construction and Term Loans (Details) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2018USD ($) | Dec. 31, 2018USD ($)Financial_institutions | Oct. 31, 2018USD ($) | Aug. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||
Long-term debt value, carrying value | $ 253,873,000 | $ 202,168,000 | ||||
Number of project financing debt facilities Company was not in compliance with | Financial_institutions | 2 | |||||
Number of project financing debt facilities Company was not in compliance with that waived failure | Financial_institutions | 1 | |||||
Number of project financing debt facilities Company was not in compliance with that did not waive failure | Financial_institutions | 1 | |||||
Covenant failure fee on a project financing facility | $ 3,978,000 | |||||
Term loan | Variable rate term loan payable in quarterly installments | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt value, carrying value | $ 21,475,000 | 0 | ||||
Debt interest rate | 10.297% | |||||
Term loan | Seven Point Five Percent Term Loan Due In August 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Draws on line of credit | $ 28,500,000 | |||||
Term loan | Five Point One Five Percent Term Loan Due December 2038 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt value, carrying value | $ 30,069,000 | 0 | ||||
Debt interest rate | 5.15% | |||||
Stated interest rate | 5.15% | |||||
Original principal amount | $ 31,659,000 | $ 12,407,000 | ||||
Term loan | Variable Rate Term Loan Due In June 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt value, carrying value | $ 9,668,000 | 0 | ||||
Debt interest rate | 4.847% | |||||
Original principal amount | $ 10,000,000 | |||||
Term loan | Variable Rate Term Loan Due In September 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt value, carrying value | $ 9,072,000 | $ 0 | ||||
Debt interest rate | 5.02% | 2.50% | ||||
Original principal amount | $ 9,200 | |||||
Term Loan - Joinder Agreement | Five Point One Five Percent Term Loan Due December 2038 | ||||||
Debt Instrument [Line Items] | ||||||
Original principal amount | $ 19,252,000 | |||||
London Interbank Offered Rate (LIBOR) | Term loan | Seven Point Five Percent Term Loan Due In August 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 7.50% |
Income Taxes - Domestic and for
Income Taxes - Domestic and foreign income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 46,542 | $ 29,792 | $ 19,874 |
Foreign | (4,152) | (1,075) | (3,507) |
Income before (benefit) provision for income taxes | $ 42,390 | $ 28,717 | $ 16,367 |
Income Taxes - Income tax provi
Income Taxes - Income tax provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ (1,888) | $ (1,055) | $ 1,304 |
Current, State | 1,176 | 671 | 303 |
Current, Foreign | 30 | 161 | (106) |
Current, Total | (682) | (223) | 1,501 |
Deferred, Federal | 2,662 | (6,683) | 2,341 |
Deferred, State | 2,530 | 1,853 | 106 |
Deferred, Foreign | 303 | 262 | 422 |
Deferred, Total | 5,495 | (4,568) | 2,869 |
Income tax (benefit) provision | $ 4,813 | $ (4,791) | $ 4,370 |
Income Taxes - Deferred income
Income Taxes - Deferred income tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Compensation accruals | $ 3,489 | $ 3,042 |
Reserves | 2,940 | 2,149 |
Other | 127 | 0 |
Net operating losses | 10,010 | 10,099 |
Interest rate swaps | 666 | 866 |
Energy efficiency | 28,911 | 22,716 |
Interest limitation | 3,292 | 0 |
Deferred revenue | 1,943 | 815 |
Gross deferred income tax assets | 51,378 | 39,687 |
Valuation allowance | (7,931) | (7,534) |
Total deferred income tax assets | 43,447 | 32,153 |
Deferred tax liabilities: | ||
Depreciation | (37,107) | (24,178) |
Deferred effect of derivative liability and ASU 2016-09 adoption | (475) | 0 |
Outside basis difference | (7,488) | (4,408) |
Other | 0 | (193) |
Total deferred income tax liabilities | (47,799) | (32,737) |
Deferred income tax liabilities, net | (4,352) | (584) |
Canada | ||
Deferred tax liabilities: | ||
Foreign Authority | (1,974) | (3,156) |
United Kingdom goodwill amortization | ||
Deferred tax liabilities: | ||
Foreign Authority | $ (755) | $ (802) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 7,931 | $ 7,534 | |
Interest rate swaps | 184 | 401 | |
Net operating losses | 10,010 | 10,099 | |
Unrecognized tax benefits | 1,600 | 600 | $ 600 |
Unrecognized tax benefits that would impact effective tax rate | 705 | 80 | |
Operating loss carryforward | 28,911 | 22,716 | |
Interest deduction carryforward | 12,300 | ||
Earnings with no repatriation tax | 0 | ||
Amount of (decrease) increase included in tax expense for interest and penalties related to uncertain tax positions | (50) | (60) | $ (20) |
Tax Cuts and Jobs Act of 2017, incomplete accounting, change in tax rate, deferred tax liability, provisional income tax benefit | 13,900 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Deferred tax assets, foreign | 7,500 | 6,871 | |
Operating loss carryforward | 25,000 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Net operating losses | 23,340 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Net operating losses | 7,200 | ||
Operating loss carryforward | 28,300 | ||
Subsidiaries | State | |||
Income Tax Contingency [Line Items] | |||
Net operating losses | $ 247 | $ 262 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income before (benefit) provision for income taxes | $ 42,390 | $ 28,717 | $ 16,367 |
Federal statutory tax expense | 8,902 | 10,048 | 5,728 |
State income taxes, net of Federal benefit | 3,071 | 1,584 | 678 |
Net state impact of deferred rate change | 174 | 327 | (110) |
Non deductible expenses | 982 | 1,473 | 670 |
Impact of reserve for uncertain tax positions | 879 | 42 | (411) |
Stock-based compensation expense | (441) | 116 | 306 |
Energy efficiency preferences | (8,636) | (6,416) | (4,130) |
Foreign items and rate differential | (41) | 139 | 516 |
Tax rate change | 0 | (13,948) | 0 |
Valuation allowance | 641 | 424 | 213 |
Miscellaneous | (718) | 1,420 | 910 |
Income tax (benefit) provision | $ 4,813 | $ (4,791) | $ 4,370 |
Effective tax rate: | |||
Federal statutory rate expense | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 7.20% | 5.50% | 4.10% |
Net state impact of deferred rate change | 0.40% | 1.10% | (0.70%) |
Non deductible expenses | 2.30% | 5.10% | 4.10% |
Impact of reserve for uncertain tax positions | 2.10% | 0.10% | (2.50%) |
Stock-based compensation expense | (1.00%) | 0.40% | 1.90% |
Energy efficiency preferences | (20.40%) | (22.30%) | (25.20%) |
Foreign items and rate differential | (0.10%) | 0.50% | 3.20% |
Tax rate change | 0.00% | (48.60%) | 0.00% |
Valuation allowance | 1.50% | 1.50% | 1.30% |
Miscellaneous | (1.60%) | 4.90% | 5.50% |
Effective tax rate | 11.40% | (16.70%) | 26.70% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 600 | $ 600 |
Additions for current year tax positions | 300 | |
Additions for prior year tax positions | 900 | 0 |
Settlements paid to tax authorities | 0 | 0 |
Reductions of prior year tax positions | (200) | 0 |
Balance, end of year | $ 1,600 | $ 600 |
Investment Funds (Details)
Investment Funds (Details) $ in Thousands | Dec. 31, 2018USD ($)fund | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | ||
Number of investment funds | fund | 4 | |
Cash | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | $ 1,255 | $ 444 |
Restricted cash | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 156 | 155 |
Accounts receivable | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 374 | 328 |
Costs and estimated earnings in excess of billings | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 498 | 360 |
Prepaid expenses and other current assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 190 | 8 |
Energy assets, net | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 122,641 | 55,712 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, assets | 1,613 | 1,398 |
Accounts payable | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 234 | 764 |
Accrued liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 4,146 | 74 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 0 | 75 |
Current portions of long-term | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 1,712 | 0 |
Long-term debt, net of deferred financing costs | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | 26,461 | 0 |
Other long-term liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, liabilities | $ 2,131 | $ 0 |
Non-Controlling Interests and_2
Non-Controlling Interests and Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||||
Term of extension of Call Option | 6 months | 6 months | 6 months | 6 months | |
Term of extension of Put Option | 6 months | 1 year | 1 year | ||
Investor contributed capital balance, percentage | 7.00% | ||||
Redeemable non-controlling interests | $ 14,719 | $ 10,338 | |||
Minimum | |||||
Class of Stock [Line Items] | |||||
Variable interest entity, aggregate exercise price of put options | 659 | ||||
Maximum | |||||
Class of Stock [Line Items] | |||||
Variable interest entity, aggregate exercise price of put options | $ 917 |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Details) $ / shares in Units, $ in Thousands | Dec. 01, 2017shares | Dec. 31, 2018USD ($)vote$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2011 | Dec. 31, 2015$ / shares | Dec. 31, 2010$ / sharesshares | May 31, 2010shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Granted (in shares) | 518,000 | 390,000 | 665,000 | |||||
Total intrinsic value of options exercised | $ | $ 5,588 | $ 808 | $ 575 | |||||
Exercise of stock options, net (in shares) | 909,000 | 401,000 | 321,000 | |||||
Exercised (in usd per share) | $ / shares | $ 7.367 | $ 4.935 | $ 3.286 | |||||
Exercise of stock options, net | $ | $ 6,696 | $ 1,977 | $ 1,054 | |||||
Cash received from option exercises under all stock-based payment arrangements, net | $ | $ 7,197 | $ 1,977 | $ 1,054 | |||||
Weighted average exercise price (in usd per share) | $ / shares | $ 8.050 | $ 7.367 | $ 7.300 | $ 7.740 | ||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 5 years | |||||||
Ratable vesting percentage | 33.33% | |||||||
Exercise term upon termination | 90 days | |||||||
Weighted average exercise price (in usd per share) | $ / shares | $ 5.20 | $ 2.93 | $ 2.60 | |||||
Stock-based compensation expense | $ | $ 1,258 | $ 1,293 | $ 1,462 | |||||
Non-vested stock options unrecognized compensation expense | $ | $ 3,107 | |||||||
Non-vested stock options unrecognized compensation expense, weighted-average period of recognition | 2 years 1 month 18 days | |||||||
Stock Options | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 3 years | |||||||
Class A Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Number of votes per share | vote | 1 | |||||||
Class B Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 144,000,000 | 144,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Number of votes per share | vote | 5 | |||||||
Common stock, shares issuable upon conversion (in shares) | 1 | |||||||
Preferred Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
2000 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Shares reserved for future issuance (in shares) | 28,500,000 | |||||||
2000 Stock Incentive Plan | Stock Options | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 10 years | |||||||
2010 Stock Incentive Plan | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for grant (in shares) | 6,833,000 | |||||||
Options vesting period | 10 years | |||||||
2010 Stock Incentive Plan | Class A Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for future issuance (in shares) | 10,000,000 | |||||||
Granted (in shares) | 3,887,000 | |||||||
2017 Employee Stock Purchase Plan | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of allocated shares (up to) (in shares) | 200,000 | |||||||
Discount from fair value of stock | 5.00% | |||||||
Stock issued during period (in shares) | 51,000 |
Stock Incentive Plan - Stock Op
Stock Incentive Plan - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | |||
Beginning balance (in shares) | 3,834,000 | 3,971,000 | 4,139,000 |
Granted (in shares) | 518,000 | 390,000 | 665,000 |
Exercised (in shares) | (909,000) | (401,000) | (321,000) |
Forfeited (in shares) | (87,000) | (41,000) | (194,000) |
Expired (in shares) | (51,000) | (85,000) | (318,000) |
Ending balance (in shares) | 3,305,000 | 3,834,000 | 3,971,000 |
Options exercisable (in shares) | 1,926,000 | ||
Options expected to vest (in shares) | 1,379,000 | ||
Weighted-Average Exercise Price | |||
Beginning balance (in usd per share) | $ 7.367 | $ 7.300 | $ 7.740 |
Granted (in usd per share) | 10.878 | 6.061 | 4.703 |
Exercised (in usd per share) | 7.367 | 4.935 | 3.286 |
Forfeited (in usd per share) | 4.726 | 6.421 | 8.154 |
Expired (in usd per share) | 9.146 | 10.157 | 11.293 |
Ending balance (in usd per share) | 8.050 | $ 7.367 | $ 7.300 |
Options exercisable (in usd per share) | 8.824 | ||
Expected to vest (in usd per share) | $ 6.970 | ||
Outstanding, remaining contractual term | 4 years 11 months 27 days | ||
Exercisable, remaining contractual term | 2 years 10 months 13 days | ||
Expected to vest, remaining contractual term | 7 years 11 months 9 days | ||
Outstanding, aggregate intrinsic value | $ 20,120 | ||
Exercisable, aggregate intrinsic value | 10,237 | ||
Expected to vest, aggregate intrinsic value | $ 9,883 |
Stock Incentive Plan - Fair Val
Stock Incentive Plan - Fair Value Assumptions (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value significant assumptions: | |||
Expected dividend yield | $ 0 | $ 0 | $ 0 |
Risk-free interest rate, minimum | 2.71% | 1.96% | 1.16% |
Risk-free interest rate, maximum | 3.00% | 2.36% | 1.77% |
Expected volatility | 46.00% | ||
Expected volatility, minimum | 43.00% | 46.00% | |
Expected volatility, maximum | 45.00% | 49.00% | |
Expected life | 6 years 6 months | 6 years 6 months | |
Minimum | |||
Fair value significant assumptions: | |||
Expected life | 6 years 6 months | ||
Maximum | |||
Fair value significant assumptions: | |||
Expected life | 10 years |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
401(k) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 100.00% | ||
Employer matching percent | 6.00% | ||
Employer contributions | $ 4,957 | $ 3,832 | $ 4,600 |
GPPP | United Kingdom goodwill amortization | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 100.00% | ||
Employer matching percent | 6.00% | ||
Employer contributions | $ 161 | 344 | 202 |
RRSP | Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 100.00% | ||
Employer matching percent | 6.00% | ||
Employer contributions | $ 351 | $ 774 | $ 307 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 30, 2018 | |
Loss Contingencies [Line Items] | ||||
Operating leases, rent expense | $ 6,463 | $ 6,362 | $ 6,147 | |
Undisclosed Name of Acquiree One | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability, certain acquired receivables | $ 425 | |||
Contingent consideration, liability, acquired receivables, payment period | 15 months | |||
Undisclosed Name of Acquiree Two | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability, revenue earn-outs, payment period | 5 years | |||
Contingent consideration, liability, fair value | $ 599 | $ 555 | ||
Contingent consideration liabilities | 2,000 | |||
Undisclosed Name Of Acquiree Three | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration liabilities | $ 363 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 7,917 |
2,020 | 7,265 |
2,021 | 5,833 |
2,022 | 5,357 |
2,023 | 3,873 |
Thereafter | 17,348 |
Total minimum lease payments | $ 47,593 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | $ 466,937 | $ 361,746 | $ 466,937 | $ 361,746 | |||||||
Revenues | 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | 787,138 | 717,152 | $ 651,227 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | 443,385 | 343,344 | 443,385 | 343,344 | |||||||
Revenues | 734,748 | 665,793 | 588,791 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | 22,107 | 17,082 | 22,107 | 17,082 | |||||||
Revenues | 36,728 | 42,186 | 49,706 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | $ 1,445 | $ 1,320 | 1,445 | 1,320 | |||||||
Revenues | $ 15,662 | $ 9,173 | $ 12,730 |
Other Expenses, Net (Details)
Other Expenses, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Gain on derivatives | $ (121) | $ (271) | $ (279) |
Interest expense, net of interest income | 13,132 | 8,086 | 6,510 |
Amortization of deferred financing fees, net | 1,894 | 1,350 | 1,173 |
Foreign currency transaction (gain) loss | 1,804 | (1,294) | 5 |
Other expenses, net | $ 16,709 | $ 7,871 | $ 7,409 |
Other Expenses, Net - Deferred
Other Expenses, Net - Deferred Financing Costs (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated Amortization | |
2,019 | $ 1,774 |
2,020 | 1,061 |
2,021 | 781 |
2,022 | 671 |
2,023 | $ 487 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Total liabilities | $ 6,027 | $ 3,529 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Asset derivatives | 766 | 233 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Assets: | ||
Asset derivatives | 733 | 233 |
Liabilities: | ||
Liability derivatives | 3,187 | 3,529 |
Fair Value, Inputs, Level 2 | Commodity swap | ||
Assets: | ||
Asset derivatives | 33 | 0 |
Liabilities: | ||
Liability derivatives | 70 | 0 |
Fair Value, Inputs, Level 2 | Hybrid Instrument | ||
Liabilities: | ||
Liability derivatives | 1,808 | 0 |
Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Contingent consideration liabilities | $ 962 | $ 0 |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair Value of Contingent Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration liabilities balance at the beginning of year | $ 0 |
Contingent consideration issued in connection with acquisitions | 918 |
Loss on change in fair value | 44 |
Contingent consideration liabilities balance at the end of year | $ 962 |
Fair Value Measurement - Fair_3
Fair Value Measurement - Fair Value and Carrying Value of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt value (Level 2) | $ 211,823 | $ 160,108 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt value (Level 2) | $ 212,687 | $ 160,598 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Probability of low case scenario | 20.00% | |
Probability of base case scenario | 75.00% | |
Probability of high case scenario | 5.00% | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded at fair value on a non-recurring basis | $ 0 | $ 0 |
Hybrid Instrument | Measurement Input, Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, measurement input | 0.18 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract |
Interest make-whole provisions | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value ($) | $ 1,808 | |
Designated as Hedging Instrument | Interest rate swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 703 | $ 233 |
Designated as Hedging Instrument | Interest rate swap contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value ($) | $ 3,187 | $ 3,529 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments | contract | 4 | 1 |
Not Designated as Hedging Instrument | Interest rate swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 30 | $ 0 |
Not Designated as Hedging Instrument | Commodity swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 33 | 0 |
Not Designated as Hedging Instrument | Commodity swap contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value ($) | 70 | 0 |
Not Designated as Hedging Instrument | Interest make-whole provisions | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value ($) | $ 1,808 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Effects on statements of income and consolidated statements of comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in net income (loss) | $ (121) | $ (271) | $ (279) |
Nonoperating Income (Expense) | Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in net income (loss) | (196) | (271) | (279) |
Nonoperating Income (Expense) | Not Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in net income (loss) | (308) | 0 | 0 |
Nonoperating Income (Expense) | Not Designated as Hedging Instrument | Commodity swap contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in net income (loss) | 36 | 0 | 0 |
Nonoperating Income (Expense) | Not Designated as Hedging Instrument | Hybrid Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in net income (loss) | $ 337 | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effects of Derivative Instruments in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 336,620 | |
Ending balance | 376,875 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (1,745) | |
Unrealized gain recognized in AOCI | 603 | |
Gain reclassified from AOCI to other expenses, net | (196) | |
Ending balance | $ (1,824) | |
Accounting Standards Update 2017-12 | ||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Cumulative impact from the adoption of new ASU | $ (54) | |
Accounting Standards Update 2017-12 | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Cumulative impact from the adoption of new ASU | $ (486) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2010 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2014 | |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Decrease in other expenses | $ 252 | |||
Interest Rate Swap | Interest Rate Swap Contract 3 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, term of contract | 14 years | |||
Interest rate swap, notional amount | $ 27,900 | |||
Interest rate swap, variable interest rate | (3.74%) | |||
Interest rate swap, amount reclassified | $ 34 | $ 566 | ||
Decrease in deferred liabilities | $ 252 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Summary of Active Derivative Instruments (Details) | Dec. 31, 2018USD ($)$ / MMBTU | Dec. 31, 2018USD ($)MMBTU$ / MMBTU |
Commodity Contract - April 2019 | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, term of contract | 1 year | |
Derivative, active commodity swap, fixed price (in usd per MMBtu) | $ / MMBTU | 2.84 | 2.84 |
Initial notional amount, volume (in MMBtu) | MMBTU | 323,390 | |
Interest Rate Swap October 2029 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 9,200,000 | $ 9,200,000 |
Derivative, active interest rate swap | 5.77% | 5.77% |
Derivative, term of contract | 11 years | |
Interest Rate Swap June 2033 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 10,000,000 | $ 10,000,000 |
Derivative, active interest rate swap | 3.19% | 3.19% |
Derivative, term of contract | 15 years | |
Interest Rate Swap - December 2020 | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 17,100,000 | $ 17,100,000 |
Derivative, active interest rate swap | 2.46% | 2.46% |
Derivative, term of contract | 3 years | |
Interest Rate Swap - December 2027 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 14,100,000 | $ 14,100,000 |
Derivative, active interest rate swap | 4.74% | 4.74% |
Derivative, term of contract | 10 years | |
Interest Rate Swap - December 2038 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 14,084,000 | $ 14,084,000 |
Derivative, active interest rate swap | 3.26% | 3.26% |
Derivative, term of contract | 15 years | |
Interest Rate Swap - February 2023 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 20,746,000 | $ 20,746,000 |
Derivative, active interest rate swap | 2.19% | 2.19% |
Derivative, term of contract | 7 years | |
Interest Rate Swap - June 2028 - Contract 1 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 14,643,000 | $ 14,643,000 |
Derivative, active interest rate swap | 3.70% | 3.70% |
Derivative, term of contract | 8 years | |
Interest Rate Swap - June 2028 - Contract 2 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 10,734,000 | $ 10,734,000 |
Derivative, active interest rate swap | 3.70% | 3.70% |
Derivative, term of contract | 8 years | |
Interest Rate Swap - March 2020 - Contract 1 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 9,665,000 | $ 9,665,000 |
Derivative, active interest rate swap | 1.71% | 1.71% |
Derivative, term of contract | 8 years | |
Interest Rate Swap - March 2020 - Contract 2 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 7,085,000 | $ 7,085,000 |
Derivative, active interest rate swap | 1.71% | 1.71% |
Derivative, term of contract | 8 years | |
Interest Rate Swap - February 2021 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 3,256,000 | $ 3,256,000 |
Derivative, active interest rate swap | 5.30% | 5.30% |
Derivative, term of contract | 15 years | |
Interest Rate Swap - March 2024 | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Initial Notional Amount ($) | $ 13,081,000 | $ 13,081,000 |
Derivative, active interest rate swap | 5.40% | 5.40% |
Derivative, term of contract | 15 years 6 months | |
Commodity Contract - April 2020 | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, active commodity swap, fixed price (in usd per MMBtu) | $ / MMBTU | 2.68 | 2.68 |
Initial notional amount, volume (in MMBtu) | MMBTU | 437,004 | |
Commodity Contract - April 2021 | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, active commodity swap, fixed price (in usd per MMBtu) | $ / MMBTU | 2.70 | 2.70 |
Initial notional amount, volume (in MMBtu) | MMBTU | 435,810 | |
Other liabilities | Hybrid Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair Value ($) | $ 1,808,000 | $ 1,808,000 |
Business Segment Information -
Business Segment Information - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Unallocated corporate expense segment | $ (30,415) | $ (27,195) | $ (32,225) |
Customer Who Declared Bankruptcy | |||
Segment Reporting Information [Line Items] | |||
Unallocated corporate expense segment | $ (2,870) | ||
Various Governments | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 77.00% | 77.00% | 77.00% |
U.S. Federal Government | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 31.30% | 32.00% | 27.30% |
Canada | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Interest and debt expense | $ 1,934 |
Business Segment Information _2
Business Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | $ 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | $ 787,138 | $ 717,152 | $ 651,227 |
Interest income | 282 | 130 | 50 | ||||||||
Interest income | 15,344 | 9,082 | 7,076 | ||||||||
Depreciation and intangible asset amortization | 29,148 | 23,915 | 22,764 | ||||||||
Unallocated corporate activity | (30,415) | (27,195) | (32,225) | ||||||||
Income before taxes, excluding unallocated corporate activity | 72,805 | 55,912 | 48,592 | ||||||||
U.S. Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 334,344 | ||||||||||
U.S. Federal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 246,309 | ||||||||||
Non-solar DG | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 82,655 | ||||||||||
Operating Segments | U.S. Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 334,344 | 290,196 | 276,766 | ||||||||
Interest income | 9 | 2 | 1 | ||||||||
Interest income | 6,188 | 2,672 | 1,055 | ||||||||
Depreciation and intangible asset amortization | 5,578 | 2,974 | 1,901 | ||||||||
Income before taxes, excluding unallocated corporate activity | 20,543 | 13,865 | 19,802 | ||||||||
Operating Segments | U.S. Federal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 246,309 | 229,146 | 178,005 | ||||||||
Interest income | 126 | 44 | 11 | ||||||||
Interest income | 1,045 | 1,056 | 942 | ||||||||
Depreciation and intangible asset amortization | 2,772 | 2,623 | 2,588 | ||||||||
Income before taxes, excluding unallocated corporate activity | 36,332 | 29,261 | 22,246 | ||||||||
Operating Segments | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 38,982 | 43,803 | 50,448 | ||||||||
Interest income | 0 | 1 | 0 | ||||||||
Interest income | 1,917 | 1,927 | 1,737 | ||||||||
Depreciation and intangible asset amortization | 1,155 | 1,178 | 1,090 | ||||||||
Income before taxes, excluding unallocated corporate activity | (2,746) | 1,751 | (2,330) | ||||||||
Operating Segments | Non-solar DG | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 82,655 | 79,220 | 74,395 | ||||||||
Interest income | 147 | 83 | 38 | ||||||||
Interest income | 6,172 | 3,389 | 3,319 | ||||||||
Depreciation and intangible asset amortization | 18,101 | 15,259 | 14,557 | ||||||||
Income before taxes, excluding unallocated corporate activity | 13,412 | 8,115 | 9,301 | ||||||||
Operating Segments | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 84,848 | 74,787 | 71,613 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest income | 22 | 38 | 23 | ||||||||
Depreciation and intangible asset amortization | 1,542 | 1,881 | 2,628 | ||||||||
Income before taxes, excluding unallocated corporate activity | 5,264 | 2,920 | (427) | ||||||||
Consolidation, Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate activity | (30,415) | (27,195) | (32,225) | ||||||||
Consolidation, Eliminations | U.S. Regions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate activity | 0 | 0 | 0 | ||||||||
Consolidation, Eliminations | U.S. Federal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate activity | 0 | 0 | 0 | ||||||||
Consolidation, Eliminations | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate activity | 0 | 0 | 0 | ||||||||
Consolidation, Eliminations | Non-solar DG | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate activity | 0 | 0 | 0 | ||||||||
Consolidation, Eliminations | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate activity | $ 0 | $ 0 | $ 0 |
Business Segment Information _3
Business Segment Information - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | $ 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | $ 787,138 | $ 717,152 | $ 651,227 |
Project | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 545,053 | 506,550 | 454,200 | ||||||||
Energy Assets | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 95,776 | 69,241 | 64,882 | ||||||||
Operations and Maintenance | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 65,236 | 60,574 | 63,082 | ||||||||
Integrated-PV | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 41,349 | 38,796 | 29,325 | ||||||||
Other services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 39,724 | $ 41,991 | $ 39,738 |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 217,371 | $ 205,375 | $ 196,982 | $ 167,410 | $ 211,133 | $ 204,744 | $ 166,665 | $ 134,610 | $ 787,138 | $ 717,152 | $ 651,227 |
Gross profit | 49,201 | 46,162 | 42,776 | 35,473 | 41,459 | 41,367 | 35,408 | 25,924 | 173,612 | 144,158 | 134,344 |
Net income attributable to common shareholders | $ 11,593 | $ 10,701 | $ 8,702 | $ 6,988 | $ 23,811 | $ 8,493 | $ 5,831 | $ (644) | $ 37,984 | $ 37,491 | $ 12,032 |
Net income (loss) per share attributable to common shareholders: | |||||||||||
Basic (in usd per share) | $ 0.25 | $ 0.23 | $ 0.19 | $ 0.15 | $ 0.52 | $ 0.19 | $ 0.13 | $ (0.01) | $ 0.83 | $ 0.82 | $ 0.26 |
Diluted (in usd per share) | $ 0.24 | $ 0.23 | $ 0.19 | $ 0.15 | $ 0.52 | $ 0.19 | $ 0.13 | $ (0.01) | $ 0.81 | $ 0.82 | $ 0.26 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 46,114 | 45,854 | 45,470 | 45,373 | 45,537 | 45,524 | 45,463 | 45,514 | 45,729 | 45,509 | 46,409 |
Diluted (in shares) | 47,327 | 46,944 | 46,406 | 45,994 | 45,957 | 45,771 | 45,675 | 45,514 | 46,831 | 45,748 | 46,493 |
Uncategorized Items - amrc-2018
Label | Element | Value |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (486,000) |