Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Tecnoglass Inc. |
Entity Central Index Key | 1,534,675 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 35,340,219 |
Trading Symbol | TGLS |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 30,605 | $ 40,923 |
Investments | 1,990 | 1,680 |
Trade accounts receivable, net | 83,255 | 110,464 |
Due from related parties | 8,305 | 8,500 |
Inventories | 79,638 | 71,656 |
Unbilled receivables on uncompleted contracts | 9,996 | |
Contract assets | 47,423 | |
Other current assets | 21,315 | 18,679 |
Total current assets | 272,531 | 261,898 |
Long term assets: | ||
Property, plant and equipment, net | 177,108 | 168,701 |
Deferred taxes | 482 | 103 |
Intangible Assets | 11,292 | 11,517 |
Goodwill | 23,561 | 23,130 |
Other long term assets | 3,128 | 2,651 |
Total long term assets | 215,571 | 206,102 |
Total assets | 488,102 | 468,000 |
Current liabilities: | ||
Short-term debt and current portion of long term debt | 5,812 | 3,260 |
Trade accounts payable and accrued expenses | 55,047 | 55,182 |
Accrued interest expense | 3,008 | 7,392 |
Due to related parties | 962 | 975 |
Note payable associated to GM&P acquisition | 29,000 | 29,000 |
Dividends payable | 869 | 585 |
Current portion of customer advances on uncompleted contracts | 11,429 | |
Contract liability - current portion | 14,696 | |
Other current liabilities | 13,008 | 13,626 |
Total current liabilities | 122,402 | 121,449 |
Long term liabilities: | ||
Deferred income taxes | 4,795 | 2,317 |
Customer advances on uncompleted contracts | 1,571 | |
Contract liability - non-current | 1,130 | |
Long term debt | 219,761 | 220,998 |
Total Long Term Liabilities | 225,686 | 224,886 |
Total liabilities | 348,088 | 346,335 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2018 and December 31, 2017 respectively | ||
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 35,340,219 and 34,836,575 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 4 | 3 |
Legal Reserves | 1,367 | 1,367 |
Additional paid-in capital | 129,479 | 125,317 |
Retained earnings | 27,768 | 22,212 |
Accumulated other comprehensive (loss) | (19,950) | (28,651) |
Shareholders’ equity attributable to controlling interest | 138,668 | 120,248 |
Shareholders’ equity attributable to non-controlling interest | 1,346 | 1,417 |
Total shareholders’ equity | 140,014 | 121,665 |
Total liabilities and shareholders’ equity | $ 488,102 | $ 468,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.0001 | $ 0.0001 |
Preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 35,340,219 | 34,836,575 |
Ordinary shares, shares outstanding | 35,340,219 | 34,836,575 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating revenues: | ||
External customers | $ 86,207 | $ 64,443 |
Related parties | 953 | 1,374 |
Total operating revenues | 87,160 | 65,817 |
Cost of sales | 60,412 | 43,565 |
Gross Profit | 26,748 | 22,252 |
Operating expenses: | ||
Selling expense | (9,006) | (6,906) |
General and administrative expense | (7,621) | (7,501) |
Provision for bad debt and write offs | (169) | 983 |
Total Operating Expenses | (16,758) | (15,390) |
Operating income | 9,990 | 6,862 |
Non-operating income | 1,099 | 1,027 |
Foreign currency transactions gains (losses) | 9,973 | 2,425 |
Loss on extinguishment of debt | (3,159) | |
Interest expense and deferred cost of financing | (5,050) | (5,082) |
Income before taxes | 16,012 | 2,073 |
Income tax provision | 5,393 | 1,042 |
Net income | 10,691 | 1,031 |
Less: Income attributable to non-controlling interest | 72 | (12) |
Income attributable to parent | 10,691 | 1,019 |
Comprehensive income: | ||
Net income | 10,691 | 1,031 |
Foreign currency translation adjustments | 8,701 | 4,801 |
Total comprehensive income | $ 19,320 | $ 5,832 |
Basic income per share | $ 0.3 | $ 0.03 |
Diluted income per share | $ 0.30 | $ 0.03 |
Basic weighted average common shares outstanding | 35,339,965 | 35,292,743 |
Diluted weighted average common shares outstanding | 35,803,320 | 35,753,145 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 10,691 | $ 1,031 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for bad debts | (169) | 983 |
Provision for obsolete inventory | 21 | |
Depreciation and amortization | 5,665 | 4,905 |
Deferred income taxes | 2,781 | (1,690) |
Extinguishment of debt | 2,583 | |
Director stock compensation | 71 | 71 |
Other non-cash adjustments | 349 | (16) |
Changes in operating assets and liabilities: | ||
Trade accounts receivables | 5,118 | 15,178 |
Inventories | (1,061) | 603 |
Prepaid expenses | (82) | (2) |
Other assets | (2,051) | (5,183) |
Trade accounts payable and accrued expenses | (20,212) | (11,641) |
Accrued interest expense | (4,398) | 2,870 |
Taxes payable | (794) | 2,720 |
Labor liabilities | (471) | (424) |
Related parties | 1,130 | 73 |
Contract assets and liabilities | (6,728) | |
Customer advances on uncompleted contracts | (654) | |
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (10,212) | 11,407 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of investments | 177 | 173 |
Business acquisitions | (1,163) | |
Purchase of investments | (218) | (450) |
Acquisition of property and equipment | (1,070) | (1,947) |
CASH USED IN INVESTING ACTIVITIES | (1,111) | (3,387) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from debt | 2,994 | 20,253 |
Cash Dividend | (540) | (550) |
Proceeds from bond issuance | 201,884 | |
Repayments of debt | (2,726) | (202,900) |
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (272) | 18,687 |
Effect of exchange rate changes on cash and cash equivalents | 1,277 | 747 |
NET (DECREASE) INCREASE IN CASH | (10,318) | 27,454 |
CASH - Beginning of period | 40,923 | 26,918 |
CASH - End of period | 30,605 | 54,372 |
Cash paid during the period for: | ||
Interest | 8,910 | 6,795 |
Income Tax | 4,258 | 3,993 |
NON-CASH INVESTING AND FINANCING ACTIVITES: | ||
Assets acquired under capital lease and debt | $ 314 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Ordinary Shares [Member] | Additional Paid in Capital [Member] | Legal Reserve [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Shareholders' Equity [Member] | Non-Controlling Interest [Member] | Total |
Balance beginning at Dec. 31, 2017 | $ 3 | $ 125,317 | $ 1,367 | $ 22,212 | $ (28,651) | $ 120,248 | $ 1,417 | $ 121,665 |
Balance beginning, shares at Dec. 31, 2017 | 34,836,575 | |||||||
Issuance of common stock | 34 | 34 | 34 | |||||
Issuance of common stock, shares | 4,564 | |||||||
Adoption of ASC 606 | (187) | (187) | (187) | |||||
Stock dividend | $ 1 | 4,128 | (4,947) | (818) | (818) | |||
Stock dividend, shares | 499,080 | |||||||
Foreign currency translation | 8,701 | 8,701 | 8,701 | |||||
Net Income | 10,691 | 10,691 | (72) | 10,691 | ||||
Balance ending at Mar. 31, 2018 | $ 4 | $ 129,479 | $ 1,367 | $ 27,769 | $ (19,950) | $ 138,669 | $ 1,345 | $ 140,014 |
Balance ending, shares at Mar. 31, 2018 | 35,340,219 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Stockholders' Equity [Abstract] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note 1. General Business Description The Company manufactures hi-specification, architectural glass and windows for the global residential and commercial construction industries. Currently the Company offers design, production, marketing, and installation of architectural systems for buildings of high, medium and low elevation size. Products include windows and doors in glass and aluminum, office partitions and interior divisions, floating facades and commercial window showcases. The Company sells to customers in North, Central and South America, and exports about half of its production to foreign countries. The Company manufactures both glass and aluminum products. Its glass products include tempered glass, laminated glass, thermo-acoustic glass, curved glass, silk-screened glass, acoustic glass and digital print glass. Its Alutions plant produces mill finished, anodized, painted aluminum profiles and rods, tubes, bars and plates. Alutions’ operations include extrusion, smelting, painting and anodizing processes, and exporting, importing and marketing aluminum products. The Company also designs, manufactures, markets and installs architectural systems for high, medium and low rise construction, glass and aluminum windows and doors, office dividers and interiors, floating facades and commercial display windows. On March 1, 2017, the Company entered into and consummated a purchase agreement, as amended, with Giovanni Monti, the owner of 100% of the outstanding shares of Giovanni Monti and Partners Consulting and Glazing Contractors (“GM&P”). GM&P is a consulting and glazing contracting company located in Miami, Florida with over 15 years of experience in the design and installation of various building enclosure systems such as curtain window walls and a long-standing commercial relationship with the Company, working alongside it in the past in different projects within the U.S, by providing engineering and installation services to those projects. The Company acquired all of the shares of GM&P for a purchase price of $35 million, of which the Company paid $6 million of the purchase price in cash within 60 days following the closing date and the remaining $29 million of the purchase price is to be paid by May 15, 2018. The Company paid an additional $6 million in cash on April 2018 and has agreed to pay the remaining amount with the issuance of 1,238,095 shares valued at $10.50 per share and a $10 million Subordinated Seller´s Note due on March 1, 2022 which is also the expiration date of the Seller´s Non-Compete Agreement. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting purposes. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the information contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP. The preparation of these unaudited, condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the Company’s financial statements. Actual results may differ from these estimates under different assumptions and conditions. Estimates inherent in the preparation of these condensed consolidated financial statements relate to the collectability of account receivables, the valuation of inventories, estimated earnings on uncompleted contracts, useful lives and potential impairment of long-lived assets. Based on information known before these unaudited, condensed consolidated financial statements were available to be issued, there are no estimates included in these statements for which it is reasonably possible that the estimate will change in the near term up to one year from the date of these financial statements and the effect of the change will be material. These financial statements reflect all adjustments that in the opinion of management are necessary for a fair statement of the financial position, results of operations and cash flows for the period presented, and are of a normal, recurring nature. The Company has one operating segment, Architectural Glass and Windows, which is also its reporting segment, comprising the design, manufacturing, distribution, marketing and installation of high-specification architectural glass and window product sold to the construction industry. Principles of Consolidation These unaudited condensed consolidated financial statements consolidate TGI, its subsidiaries TG, ES and ESW LLC, Tecno LLC, Tecno RE, GM&P and Componenti USA LLC (“Componenti”), which are entities in which we have a controlling financial interest because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. All significant intercompany accounts and transactions are eliminated in consolidation, including unrealized intercompany profits and losses. Non-controlling interest When the Company owns a majority (but less than 100%) of a subsidiary’s stock, the Company includes in its condensed consolidated Financial Statements the non-controlling interest in the subsidiary. The non-controlling interest in the Condensed Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the Consolidated Balance Sheet, is equal to the non-controlling proportionate share of the subsidiary’s net assets. Foreign Currency Translation The condensed consolidated financial statements are presented in U.S. Dollars, the reporting currency. Our foreign subsidiaries’ local currency is the Colombian Peso, which is also their functional currency as determined by the analysis of markets, costs and expenses, assets, liabilities, financing and cash flow indicators. As such, our subsidiaries’ assets and liabilities are translated at the exchange rate in effect at the balance sheet date, with equity being translated at the historical rates. Revenues and expenses of our foreign subsidiaries are translated at the average exchange rates for the period. The resulting cumulative foreign currency translation adjustments from this process are included as a component of accumulated other comprehensive income (loss). Therefore, the U.S. Dollar value of these items in our financial statements fluctuates from period to period. Also, exchange gains and losses arising from transactions denominated in a currency other than the functional currency are included in the condensed consolidated statement of operations as foreign exchange gains and losses. Revenue Recognition Our principal sources of revenue are derived from product sales of manufactured glass and aluminum products. Revenue is recognized when (i) persuasive evidence of an arrangement exists in the form of a signed purchase order or contract, (ii) delivery has occurred per contracted terms, (iii) fees and prices are fixed and determinable, and (iv) collectability of the sale is reasonably assured. All revenue is recognized net of discounts, returns and allowances. Delivery to the customer is deemed to have occurred when the title is passed to the customer. Generally, title passes to the customer upon shipment, but title transfer may occur when the customer receives the product based on the terms of the agreement with the customer. Effective January 1, 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, Revenue Recognition A substantial amount of the Company’s consolidated net sales is generated from long-term contracts with customers that require to design, develop, test, manufacture, and install windows according to the customers’ specifications. These contracts are primarily multi-year contracts with real estate general contractors and are generally priced on a fixed-price basis and are invoiced based on contract progress. To determine the proper revenue recognition method, the Company first evaluates each of its contractual arrangements to identify its performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. All the Company’s contracts have a single performance obligation because the promise to transfer the individual good or service is not separately identifiable from other promises within the contract and is, therefore, not distinct. These contractual arrangements either require the use of a highly specialized manufacturing process to provide goods according to customer specifications or represent a bundle of contracted goods and services that are integrated and together represent a combined output, which may include the delivery of multiple units. The majority of the Company's sales are from performance obligations satisfied over time and are primarily with general contractors to real estate developers. Sales are recognized over time when control is continuously transferred to the customer during the contract. The continuous transfer of control to the customer is supported by contract clauses that provide for progress or performance-based payments. Sales are recorded using the cost-to-cost method on fixed price contracts that include performance obligations satisfied over time are generally recorded at amounts equal to the ratio of actual cumulative costs incurred divided by total estimated costs at completion, multiplied by (i) the transaction price, less (ii) the cumulative sales recognized in prior periods. Accounting for the sales and profits on performance obligations for which progress is measured using the cost-to-cost method involves the preparation of estimates of: (1) transaction price and (2) total costs at completion, which is equal to the sum of the actual incurred costs to date on the contract and the estimated costs to complete the contract's statement of work. Incurred costs include labor, material, and overhead and represent work performed, which corresponds with and thereby represents the transfer of ownership to the customer. Performance obligations are satisfied over time when the risk of ownership has been passed to the customer and/or services are performed. The estimated profit or loss at completion on a contract is equal to the difference between the transaction price and the total estimated cost at completion. Contract modifications routinely occur to account for changes in contract specifications or requirements. In most cases, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract. Transaction price estimates include additional consideration for submitted contract modifications or claims when the Company believes it has an enforceable right to the modification or claim, the amount can be reliably estimated and its realization is reasonably assured. Amounts representing modifications accounted for as part of the existing contract are included in the transaction price and recognized as an adjustment to sales on a cumulative catch-up basis. The Company’s fixed-price type contracts allow for progress payments to bill the customer as contract costs are incurred and the customer often retains a small portion of the contract price until satisfactory completion of the contractual statement of work, which is a retainage of approximately 10%. For certain fixed-price contracts, the Company receives advance payments. Advanced payments are not considered a significant financing component because they are a negotiated contract term to ensure the customer meets its financial obligation, particularly when there are significant upfront working capital requirements. The Company records a liability for advance payments received in excess of sales recognized, which is presented as a contract liability on the balance sheet. Revisions or adjustments to estimates of the transaction price, estimated costs at completion and estimated profit or loss of a performance obligation are often required as work progresses under a contract, as experience is gained, as facts and circumstances change and as new information is obtained, even though the scope of work required under the contract may not change. Revisions or adjustments may also be required if contract modifications occur. The impact of revisions in profit or loss estimates are recognized on a cumulative catch-up basis in the period in which the revisions are made. The revisions in contract estimates, if significant, can materially affect the Company’s results of operations and cash flows, as well as reduce the valuations of contract assets and inventories, and in some cases result in liabilities to complete contracts in a loss position. Remaining Performance Obligations On March 31, 2018, the Company had $269 million of remaining performance obligations, which represents the transaction price of firm orders less inception to date sales recognized. Remaining performance obligations exclude unexercised contract options and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales sales relating to existing performance obligations within three years. Income Taxes The Company’s operations in Colombia are subject to the taxing jurisdiction of the Republic of Colombia. Tecnoglass LLC and Tecnoglass RE LLC are subject to the taxing jurisdiction of the United States. TGI and Tecnoglass Holding are subject to the taxing jurisdiction of the Cayman Islands. Annual tax periods prior to December 2014 are no longer subject to examination by taxing authorities in Colombia. GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. The Company accounts for income taxes using the asset and liability approach of accounting for income taxes (ASC 740 “Income Taxes”). Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets. The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The uncertain income taxes positions are recorded in “Taxes payable” in the consolidated balance sheets. Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average number of ordinary shares outstanding during the period. Income per share assuming dilution (diluted earnings per share) would give effect to dilutive options and other potential ordinary shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The following table sets forth the computation of the basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: March 31, 2018 2017 Numerator for basic and diluted earnings per shares Net Income (Loss) $ 10,691 $ 1,031 Denominator Denominator for basic earnings per ordinary share - weighted average shares outstanding 35,339,965 35,292,743 Effect of dilutive securities and stock dividend 463,355 460,402 Denominator for diluted earnings per ordinary share - weighted average shares outstanding 35,803,320 35,753,145 Basic earnings per ordinary share $ 0.30 $ 0.03 Diluted earnings per ordinary share $ 0.30 $ 0.03 The effect of dilutive securities includes 463,355 and 460,402 as of March 31, 2018 and 2017, respectively, for shares potentially issued in relation to the dividends declared. The denominator for basic and diluted earnings per ordinary share for the three months ended March 31, 2017 includes 1,812,313 ordinary shares issued in connection with the share dividend. Product Warranties The Company offers product warranties in connection with the sale and installation of its products that are competitive in the markets in which the products are sold. Standard warranties depend upon the product and service, and are generally from five to ten years for architectural glass, curtain wall, laminated and tempered glass, window and door products. Warranties are not priced or sold separately and do not provide the customer with services or coverages in addition to the assurance that the product complies with original agreed-upon specifications. Claims are settled by replacement of the warrantied products. The Company evaluated historical information regarding claims for replacements under warranties and concluded that the costs that the Company has incurred in relation to these warranties have not been material. Non-Operating Income, net The Company recognizes non-operating income from foreign currency transaction gains and losses, interest income on receivables, proceeds from sales of scrap materials and other activities not related to the Company’s operations. Foreign currency transaction gains and losses occur when monetary assets, liabilities, payments and receipts that are denominated in currencies other than the Company’s functional currency are recorded in the Colombian peso accounts of the Company in Colombia. Shipping and Handling Costs The Company classifies amounts billed to customers related to shipping and handling as product revenues. The Company records and presents shipping and handling costs in selling expenses. Shipping and handling costs for the three months ended March 31, 2018 and 2017 were $4,732 and $3,132, respectively. Dividends Payable The company accounts for its dividend declared as a liability under ASC 480 - Distinguishing Liabilities from Equity since the shareholder have the option to elect cash or stock, and reclassifies from dividend payable to additional paid-in capital when shareholders elects a stock dividend instead of cash. The dividend payable is not subject to re-measurement at each balance sheet date since the dividend is a fixed monetary amount known at inception and thus no change in fair value adjustment is necessary. Recently Issued Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 reduces diversity in practice by providing guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. ASU 2016-15 is effective on a retrospective basis for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Adoption of this ASU has no material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under ASU 2016-02, a lessee will recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. ASU 2016-02 retains a distinction between finance leases (i.e. capital leases under current GAAP) and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current GAAP. The amendments of this ASU are effective for reporting periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. |
New Accounting Standards Implem
New Accounting Standards Implemented | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards Implemented | Note 3. New Accounting Standards Implemented In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers As discussed in Note 2, the Company adopted ASC 606 using the modified retrospective transition method. Results for reporting periods beginning after December 31, 2017 are presented under ASC 606, while prior period comparative information has not been restated and continues to be reported in accordance with ASC 605, Revenue Recognition, Based on the analysis performed of the uninstalled materials at January 1, 2018, the Company recorded, upon adoption of ASC 606, a net decrease to retained earnings of $187,as shown on the table below. The adjustment to retained earnings primarily relates to contracts that had uninstalled material that were not previously included in inventory since the cost-to-cost method was appropriately reflecting the progress of these contracts. The Company made certain presentation changes to its consolidated balance sheet on January 1, 2018 to comply with ASC 606. The components of contracts in process as reported under ASC 605, which included unbilled contract receivables and inventoried contract costs, have been reclassified as contract assets and inventories, respectively, after certain adjustments described below under ASC 606. The remainder of inventoried contract costs, primarily related to inventories not controlled by the Company's customers, were reclassified to inventories. The Company expenses costs to obtain a contract and costs to fulfill a contract as incurred. Other revenues not related to fixed-type contracts did not resulted in any changes under ASC 606 and the revenues is still been recognized when the risk of ownership is transfer to the customer based on the sales terms. The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606. December 31, 2017 As Reported Under ASC 605 Adjustments Due to ASC 606 January 1, 2018 As Adjusted Under ASC 606 ASSETS Trade accounts receivable, net $ 110,464 $ (30,223 ) $ 80,241 Inventories 71,656 1,975 73,631 Unbilled receivables on uncompleted contracts 9,996 (9,996 ) - Contract assets - 45,468 45,468 Other Assets 275,884 - 275,884 Total Assets $ 468,000 $ 7,224 $ 475,224 LIABILITIES Contract liabilities - current - 18,945 18,945 Current portion of customer advances on uncompleted contracts 11,429 (11,429 ) - Other current liabilities 13,626 (105 ) 13,521 Current portion of customer advances on uncompleted contracts 1,571 (1,571 ) - Contract liabilities - current - 1,571 1,571 Other Liabilities 319,709 - 319,709 Total liabilities $ 346,335 $ 7,411 $ 353,746 SHAREHOLDERS’ EQUITY Retained earnings 22,212 (187 ) 22,025 Total shareholders’ equity $ 121,665 $ (187 ) $ 121,478 The adjustment of trade accounts receivable upon adoption of ASC 606 is related to the reclassification of retainage receivables to contract assets. See breakdown of contract assets further below. The table below presents the impact of the adoption of ASC 606 on the Company’s statement of operations. Three months ended March 31, 2018 Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Operating Revenues $ 89,086 $ (1,926 ) $ 87,160 Cost of Sales 62,145 (1,733 ) 60,412 Gross Profit 26,941 (193 ) 26,748 Operating Expenses (16,758 ) - (16,758 ) Other Income and Expenses 6,022 - 6,022 Income Before Tax 16,205 (193 ) 16,012 Income Tax Provision (5,442 ) 49 (5,393 ) Net Income 10,763 (144 ) 10,619 Net Income Attributable to Parent $ 10,835 $ (144 ) $ 10,691 Basic earnings per share $ 0.30 $ - $ 0.30 Diluted earnings per share $ 0.29 $ - $ 0.29 The table below presents the impact of the adoption of ASC 606 on the Company’s balance sheet. March 31, 2018 Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 ASSETS Trade accounts receivable, net $ 111,925 $ (28,670) $ 83,255 Inventories 77,905 1,733 79,638 Unbilled receivables on uncompleted contracts 14,974 (16,822) (1,848) Contract assets - 47,423 47,423 Other Assets 279,634 - 279,634 Total Assets $ 484,438 $ 3,664 $ 488,102 LIABILITIES Contract liabilities - current - 18,831 14,696 Current portion of customer advances on uncompleted contracts 14,974 (14,974) Other current liabilities 13,057 (49) 13,008 Customer advances on uncompleted contracts - non-current 1,130 (1,130) - Contract liabilities - non-current - 1,130 1,130 Other Liabilities 335,080 - 335,080 Total liabilities $ 344,280 $ 3,808 $ 348,088 SHAREHOLDERS’ EQUITY Retained earnings 27,912 (144) 27,768 Total shareholders’ equity $ 140,158 $ (144) $ 140,014 Disaggregation of Total Net Sales The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows. Three months ended March 31, 2018 2017 Fixed price contracts $ 42,216 $ 21,720 Standard form sales 44,944 44,097 Total Revenues $ 87,160 $ 65,817 The following table presents geographical information about revenues from external customers. Three months ended March 31, 2018 2017 Colombia $ 21,824 $ 16,428 United States 62,993 46,308 Panama 814 1,263 Other 1,529 1,818 Total Revenues $ 87,160 $ 65,817 Contract Assets and Contract Liabilities Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales but have not been billed to customers and are classified as current. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract by contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in other liabilities in the Company's consolidated balance sheets. The table below presents the components of net contract assets (liabilities). March 31, 2018 January 1 2018 Contract assets $ 47,423 $ 45,468 Contract liabilities — current 14,696 18,945 Contract liabilities — non-current 1,130 1,571 Net contract assets (liabilities) $ 63,249 $ 65,984 The components of contract assets are presented in the table below. March 31, 2018 January 1 2018 Unbilled contract receivables, gross $ 18,753 $ 15,245 Retainage 28,670 30,223 Net contract assets (liabilities) $ 47,423 $ 45,468 The components of contract liabilities are presented in the table below. March 31, 2018 January 1 2018 Billings in excess of costs $ 3,779 $ 7,516 Advances from customers on uncompleted contracts 12,047 13,000 Total contract liabilties 15,826 20,516 Less: current portion 14,696 18,945 Contract liabilities – non-current $ 1,130 $ 1,571 |
GM&P Acquisition
GM&P Acquisition | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
GM&P Acquisition | Note 4. GM&P Acquisition On March 1, 2017, the Company acquired a 100% controlling interest in GM&P, a Florida-based commercial consulting, glazing and engineering company, specializing in windows and doors for commercial contractors. The primary reasons for the acquisitions are to penetrate different markets in the U.S. to streamline its distribution logistics, and to fabricate in the United States when economically advantageous. The purchase price for the acquisition was $35,000, of which $6,000 of the purchase price was paid in cash by the Company on May 17, 2017, with the remaining amount to be originally payable by the Company in cash, stock of the Company or a combination of both at the Company´s sole discretion within 180 days after closing, subsequently amended to be paid by May 15, 2018 . With the acquisition of GM&P, the Company also acquired a 60% equity interest in Componenti, a subsidiary of GM&P that provides architectural specialties in the US, specializing in design-build systems for individual projects and with experience in value engineering to create products that comply with the architects’ original design intent, while maintaining focus on affordable construction methods and materials. The following table summarizes the consideration transferred to acquire GM&P and the amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the non-controlling interest in Componenti as of the acquisition date. Under ASC 805, a company can apply measurement period adjustments during the twelve-month period after the date of acquisition. During this period, the acquirer may adjust preliminary amounts recognized at the acquisition date to their subsequently determined final fair values. The allocation of the consideration transferred was based on management’s judgment after evaluation of several factors, including a preliminary valuation assessment. The analysis has been completed and results in measurement period adjustments are included in the final purchase price allocation as shown on the table below. The goodwill from the GM&P acquisition represents the expected synergies from combining operations with Tecnoglass Inc., and is not deductible for tax purposes The following table summarizes the purchase price allocation of the total consideration transferred: Consideration Transferred: Notes payable (Cash or Stock) $ 35,000 Fair value of the non-controlling interest in Componenti 1,141 Recognized amounts of identifiable assets acquired and liabilities assumed: Preliminary Purchase Price Allocation Measurement Period Adjustments Final Purchase Price Allocation Cash and equivalents $ 509 509 Accounts receivable 42,314 42,314 Other current assets 5,287 242 5,529 Property, plant, and equipment 684 684 Other non-current tangible assets 59 59 Trade name 980 980 Non-compete agreement 165 165 Contract backlog 3,090 3,090 Customer relationships 4,140 4,140 Accounts payable (22,330 ) 275 (22,055 ) Other current liabilities assumed (13,967 ) (673 ) (14,640 Non-current liabilities assumed (3,634 ) (3,231 ) (6,865 ) Total identifiable net assets 17,297 (3,387 ) 13,910 Goodwill (including Workforce) $ 18,844 3,387 $ 22,231 The adjustment made to the preliminary purchase price allocation to Non-current liabilities assumed is related to an adjustment in deferred tax liability and billings in excess of cost incurred. The excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The identifiable intangible asset subject to amortization was the tradename, customer relationships, non-compete agreement, and backlog, which have a remaining useful life of two to five years. See Note 6 – Goodwill and Intangible Assets for additional information. The following unaudited pro forma financial information assumes the acquisition had occurred as of January 1, 2017 which does not include GM&P actual results for the entire period. Pro forma results have been prepared by adjusting our historical results to include the results of GM&P adjusted for the amortization expense related to the intangible assets arising from the acquisition. The unaudited pro forma results below do not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the earliest periods presented, nor does it indicate the results of operations in future periods. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Pro-Forma Three months Ended (in thousands, except per share amounts) March 31, 2017 Pro Forma Results Net sales $ 75.804 Net (loss) income attributable to parent $ (35 ) Net income per common share: Basic $ (0.00 ) Diluted $ (0.00 ) Non-controlling interest The Company has 60% equity interest in Componenti. The 40% non-controlling interest in Componenti is included in the opening balance sheet as of the acquisition date and its fair value amounted to $1,141. When the company owns a majority (but less than 100%) of a subsidiary’s stock, the Company includes in its Consolidated Financial Statements the non-controlling interest in the subsidiary. The non-controlling interest in the Condensed Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling interests’ proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the Condensed Consolidated Balance Sheet, is equal to the non-controlling interests’ proportionate share of the subsidiary’s net assets. In determining the fair value we used the income approach and the market approach which was performed by third party valuation specialists under management. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5. - Inventories, net Inventories are comprised of the following: March 31, 2018 December 31, 2017 Raw materials $ 39,589 $ 40,509 Work in process 19,422 11,468 Finished goods 13,167 13,236 Stores and spares 7,017 6,134 Packing material 579 438 79,774 71,785 Less: Inventory allowance (136 ) (129 ) $ 79,638 $ 71,656 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill The table below provides a reconciliation of the beginning and ending balances of the Goodwill recorded on the Company’s balance sheet: Beginning balance - December 31, 2017 $ 23,130 GM&P measurement period adjustment 431 Ending balance – March 31, 2018 $ 23,561 Intangible Assets, Net Intangible assets include Miami-Dade County Notices of Acceptances (NOA’s), which are certificates in the required to market hurricane- resistant glass in Florida. Also, it includes the intangibles acquired from the acquisition of GM&P. March 31, 2018 Gross Acc. Amort. Net Trade Names $ 980 $ (212 ) $ 768 Notice of Acceptances (NOAs), product designs and other intellectual property 10,593 (4,793 ) 5,800 Non-compete Agreement 165 (36 ) 129 Contract Backlog 3,090 (1,674 ) 1,416 Customer Relationships 4,140 (961 ) 3,179 Total $ 18,968 $ (7,676 ) $ 11,292 December 31, 2017 Gross Acc. Amort. Net Trade Names $ 980 $ (163 ) $ 817 Notice of Acceptances (NOAs), product designs and other intellectual property 10,826 (5,467 ) 5,359 Non-compete Agreement 165 (28 ) 137 Contract Backlog 3,090 (1,287 ) 1,803 Customer Relationships 4,140 (739 ) 3,401 Total $ 19,201 $ (7,684 ) $ 11,517 The weighted average amortization period is 4.9 years. During the three months ended March 31, 2018 and 2017, the amortization expense amounted to $863 and $610, respectively, and was included within the general and administration expenses in our consolidated statement of operations. The estimated aggregate amortization expense for each of the five succeeding years as of March 31, 2018 is as follows: Year ending (in thousands) 2018 $ 2,945 2019 2,526 2020 2,146 2021 2,115 2022 1,176 Thereafter 384 $ 11,292 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt The Company’s debt is comprised of the following: March 31, 2018 December 31, 2017 Revolving lines of credit $ 2,422 $ 638 Capital lease 222 245 Unsecured senior note 210,000 210,000 Other loans 19,997 20,293 Less: Deferred cost of financing (7,068 ) (6,918 ) Total obligations under borrowing arrangements 225,573 224,258 Less: Current portion of long-term debt and other current borrowings 5,812 3,260 Long-term debt $ 219,761 $ 220,998 As of March 31, 2018 and December 31, 2017 , the Company had $231,667 and $224,041 of debt denominated in US Dollars with the remaining amounts denominated in Colombian Pesos. On January 23, 2017, the Company issued a U.S. dollar denominated, $210 million offering of 5-year senior unsecured notes at a coupon rate of 8.2% in the international debt capital markets under Rule 144A of the Securities Act to Qualified Institutional Buyers. The Company used approximately $179 million of the proceeds to repay outstanding indebtedness, including Capital leases, and as a result achieved a lower cost of funding and strengthened its capital structure given the non-amortizing structure of the bond. Of these repayments, $59,444 were used to refinance short term debt into long term debt. The senior note does not have negative covenants with an acceleration clause, however requires the Company to meet certain performance indicators in order to take on incremental debt. The Company had $4,828 and $4,758 of property, plant and equipment pledged as collateral for various lines of credit as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, the Company was obligated under various capital leases under which the aggregate present value of the minimum lease payments amounted to $222. Differences between capital lease obligations and the value of property, plant and equipment under capital lease arises from differences between the maturities of capital lease obligations and the useful lives of the underlying assets. Maturities of long term debt and other current borrowings are as follows as of March 31, 2018: 2019 $ 5,812 2020 2,408 2021 2,377 2022 212,359 2023 2,358 Thereafter 7,327 Total $ 232,641 The Company’s loans have maturities ranging from a few weeks to 11 years. Our credit facilities bear interest at a weighted average of rate 7.8%. Interest expense for the three months ended March 31, 2018 and 2017, respectively was $5,050, and 5,082, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes The Company files income tax returns for TG and ES in the Republic of Colombia. On December 28, 2016, the Colombian congress enacted a structural tax reform that took effect on January 1, 2017 which reduces corporate income tax from 42% to 40% for fiscal year 2017, 37% in 2018 and 33% in 2019 and thereafter. GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. The estimated combined state and federal income tax rate I s estimated at a rate of 25% based on the recently enacted U.S. Tax Reform. Tecnoglass Inc. as well as all the other subsidiaries in the Cayman Islands and Panama do not currently have any tax obligations. The components of income tax expense (benefit) are as follows: March 31, 2018 December 31, 2017 Current income tax United States $ 407 $ 452 Colombia 2,205 2,280 2,612 2,732 Deferred income Tax United States 169 380 Colombia 2,612 (2,070 ) 2,781 (1,690 ) Total Provision for Income Tax $ 5,393 $ 1,042 Effective tax rate 33.7 % 50.3 % As of March 31, 2018, the Company has an uncertain tax position amounting to $2,073 related to $8,351 gross unrecognized tax benefit associated with a conversion of GM&P’s cash basis accounting for tax purposes to accrual basis for Fiscal years 2016 and 2015. Before 2015, GM&P was using the cash method of accounting and due to IRS regulations it needed to convert to accrual method and pay the IRS taxes over the gross unrecognized tax benefit associated with the conversion. The unrecognized tax benefits may increase or change during the next year for items that arise in the ordinary course of business and may be subject to inspection by the Colombian tax authorities for a period of up to two years until the statute of limitations period elapses and US tax authorities for a period of up to six years until the statute of limitations period elapses. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9. Fair Value Measurements The Company accounts for financial assets and liabilities in accordance with accounting standards that define fair value and establish a framework for measuring fair value. The hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and advances from customers approximate their fair value due to their relatively short-term maturities. The Company bases its fair value estimate for long term debt obligations on its internal valuation that all debt is floating rate debt based on current interest rates in Colombia. As of December 31, 2017, financial instruments carried at amortized cost that do not approximate fair value consist of long-term debt. See Note 10 - Debt. The fair value of long term debt was calculated based on an analysis of future cash flows discounted with our average cost of debt which is based on market rates, which are level 2 inputs. The following table summarizes the fair value and carrying amounts of our long-term debt: March 31, 2018 December 31, 2017 Fair Value 239,739 240,057 Carrying Value 219,761 220,998 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 10. Related Parties The following is a summary of assets, liabilities, and income and expense transactions with all related parties, shareholders, directors and managers: Three months ended March 31, 2018 2017 Sales to related parties $ 953 $ 1,374 Fees paid to directors and officers $ 827 $ 710 Payments to other related parties $ 988 $ 806 March 31, 2018 December 31, 2017 Current Assets: Due from VS $ 5,414 $ 6,240 Due from other related parties 2,893 2,260 $ 8,307 $ 8,500 Liabilities: Due to related parties $ 962 $ 975 Ventanas Solar S.A. (“VS”), a Panama sociedad anonima, Payments to other related parties during three months ended March 31, 2018 and 2017 include charitable contributions to the Company’s foundation for $ 271 and $416, respectively, and sales commissions for $341 and $241, respectively. |
Dividends Payable
Dividends Payable | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Dividends Payable | Note 11. Dividends Payable The Company originally authorized the payment of four regular quarterly dividends to holders of ordinary shares at a quarterly rate of $0.125 per share, or $0.50 per share on an annual basis, with the first quarterly dividend being paid on November 1, 2016. The dividends are payable in cash or ordinary shares, at the option of the holders of ordinary shares. On May 11, 2017, the Company announced that commencing with the declared quarterly dividend for the third quarter of 2017 through any future dividends to be declared and paid through the second quarter of 2018, a 12% increase to $0.14 per share, or $0.56 per share on an annual basis would apply. As a result, the Company has a dividend payable amounting to $869 as of December 31, 2017. The Company issued 499,080 shares for the share dividends paid during the three months ended March 31, 2018. The Company analyzed the accounting guidance under ASC 505 and determined that this guidance is not applicable since the dividend are shares of the same class in which each shareholder is given an election to receive cash or shares. As such, the Company analyzed the dividend under ASC 480 — Distinguishing Liabilities from Equity and concluded that the dividend should be accounted for as a liability since the dividend is a fixed monetary amount known at inception. A reclassification from dividend payable to additional paid-in capital was done for the stocks dividend elections. Energy Holding Corp., the majority shareholder of the Company, has irrevocably elected to receive any quarterly dividends declared through the second quarter of 2018 in ordinary shares, as opposed to cash. Dividend declarations and the establishment of future record and payment dates are subject to the Board of Directors’ continuing determination that the dividend policy is in the best interests of the Company and its shareholders. The dividend policy may be changed or cancelled at the discretion of the Board of Directors at any time. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Commitments As of December 31, 2017, the Company has an outstanding obligation to purchase an aggregate of at least $39,144 of certain raw materials from a specific supplier before May 2026. General Legal Matters From time to time, the Company is involved in legal matters arising in the regular course of business. Some disputes are derived directly from our construction projects, related to supply and installation, and even though deemed ordinary, they may involve significant monetary damages. We are also subject to other type of litigations arising from employment practices, worker’s compensation, automobile claims and general liability. It is very difficult to predict precisely what the outcome of these litigations might be. However, with the information at out disposition as this time, there are no indications that such claims will result in a material adverse effect on the business, financial condition or results of operations of the Company. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events On May 05, 2018, the Company completed the payment of the remaining $29 million purchase price for GM&P through the payment of $6 million of cash on hand, the execution of a $10 million junior subordinated note and the issuance of 1,238,095 ordinary shares. The note will have semi-annual interest-only payments at a fixed rate of 6% per annum and matures in March 2022. The 1,238,095 ordinary shares had an aggregate value of $10 million. This represented a price of $10.50 per share, or a 23% premium over the last sale price of the ordinary shares on the date of payment. |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting purposes. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the information contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP. The preparation of these unaudited, condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the Company’s financial statements. Actual results may differ from these estimates under different assumptions and conditions. Estimates inherent in the preparation of these condensed consolidated financial statements relate to the collectability of account receivables, the valuation of inventories, estimated earnings on uncompleted contracts, useful lives and potential impairment of long-lived assets. Based on information known before these unaudited, condensed consolidated financial statements were available to be issued, there are no estimates included in these statements for which it is reasonably possible that the estimate will change in the near term up to one year from the date of these financial statements and the effect of the change will be material. These financial statements reflect all adjustments that in the opinion of management are necessary for a fair statement of the financial position, results of operations and cash flows for the period presented, and are of a normal, recurring nature. The Company has one operating segment, Architectural Glass and Windows, which is also its reporting segment, comprising the design, manufacturing, distribution, marketing and installation of high-specification architectural glass and window product sold to the construction industry. |
Principles of Consolidation | Principles of Consolidation These unaudited condensed consolidated financial statements consolidate TGI, its subsidiaries TG, ES and ESW LLC, Tecno LLC, Tecno RE, GM&P and Componenti USA LLC (“Componenti”), which are entities in which we have a controlling financial interest because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. All significant intercompany accounts and transactions are eliminated in consolidation, including unrealized intercompany profits and losses. |
Non-Controlling Interest | Non-controlling interest When the Company owns a majority (but less than 100%) of a subsidiary’s stock, the Company includes in its condensed consolidated Financial Statements the non-controlling interest in the subsidiary. The non-controlling interest in the Condensed Consolidated Statements of Operations and Other Comprehensive Income is equal to the non-controlling proportionate share of the subsidiary’s net income and, as included in Shareholders’ Equity on the Consolidated Balance Sheet, is equal to the non-controlling proportionate share of the subsidiary’s net assets. |
Foreign Currency Translation | Foreign Currency Translation The condensed consolidated financial statements are presented in U.S. Dollars, the reporting currency. Our foreign subsidiaries’ local currency is the Colombian Peso, which is also their functional currency as determined by the analysis of markets, costs and expenses, assets, liabilities, financing and cash flow indicators. As such, our subsidiaries’ assets and liabilities are translated at the exchange rate in effect at the balance sheet date, with equity being translated at the historical rates. Revenues and expenses of our foreign subsidiaries are translated at the average exchange rates for the period. The resulting cumulative foreign currency translation adjustments from this process are included as a component of accumulated other comprehensive income (loss). Therefore, the U.S. Dollar value of these items in our financial statements fluctuates from period to period. Also, exchange gains and losses arising from transactions denominated in a currency other than the functional currency are included in the condensed consolidated statement of operations as foreign exchange gains and losses. |
Revenue Recognition | Revenue Recognition Our principal sources of revenue are derived from product sales of manufactured glass and aluminum products. Revenue is recognized when (i) persuasive evidence of an arrangement exists in the form of a signed purchase order or contract, (ii) delivery has occurred per contracted terms, (iii) fees and prices are fixed and determinable, and (iv) collectability of the sale is reasonably assured. All revenue is recognized net of discounts, returns and allowances. Delivery to the customer is deemed to have occurred when the title is passed to the customer. Generally, title passes to the customer upon shipment, but title transfer may occur when the customer receives the product based on the terms of the agreement with the customer. Effective January 1, 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, Revenue Recognition A substantial amount of the Company’s consolidated net sales is generated from long-term contracts with customers that require to design, develop, test, manufacture, and install windows according to the customers’ specifications. These contracts are primarily multi-year contracts with real estate general contractors and are generally priced on a fixed-price basis and are invoiced based on contract progress. To determine the proper revenue recognition method, the Company first evaluates each of its contractual arrangements to identify its performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. All the Company’s contracts have a single performance obligation because the promise to transfer the individual good or service is not separately identifiable from other promises within the contract and is, therefore, not distinct. These contractual arrangements either require the use of a highly specialized manufacturing process to provide goods according to customer specifications or represent a bundle of contracted goods and services that are integrated and together represent a combined output, which may include the delivery of multiple units. The majority of the Company's sales are from performance obligations satisfied over time and are primarily with general contractors to real estate developers. Sales are recognized over time when control is continuously transferred to the customer during the contract. The continuous transfer of control to the customer is supported by contract clauses that provide for progress or performance-based payments. Sales are recorded using the cost-to-cost method on fixed price contracts that include performance obligations satisfied over time are generally recorded at amounts equal to the ratio of actual cumulative costs incurred divided by total estimated costs at completion, multiplied by (i) the transaction price, less (ii) the cumulative sales recognized in prior periods. Accounting for the sales and profits on performance obligations for which progress is measured using the cost-to-cost method involves the preparation of estimates of: (1) transaction price and (2) total costs at completion, which is equal to the sum of the actual incurred costs to date on the contract and the estimated costs to complete the contract's statement of work. Incurred costs include labor, material, and overhead and represent work performed, which corresponds with and thereby represents the transfer of ownership to the customer. Performance obligations are satisfied over time when the risk of ownership has been passed to the customer and/or services are performed. The estimated profit or loss at completion on a contract is equal to the difference between the transaction price and the total estimated cost at completion. Contract modifications routinely occur to account for changes in contract specifications or requirements. In most cases, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract. Transaction price estimates include additional consideration for submitted contract modifications or claims when the Company believes it has an enforceable right to the modification or claim, the amount can be reliably estimated and its realization is reasonably assured. Amounts representing modifications accounted for as part of the existing contract are included in the transaction price and recognized as an adjustment to sales on a cumulative catch-up basis. The Company’s fixed-price type contracts allow for progress payments to bill the customer as contract costs are incurred and the customer often retains a small portion of the contract price until satisfactory completion of the contractual statement of work, which is a retainage of approximately 10%. For certain fixed-price contracts, the Company receives advance payments. Advanced payments are not considered a significant financing component because they are a negotiated contract term to ensure the customer meets its financial obligation, particularly when there are significant upfront working capital requirements. The Company records a liability for advance payments received in excess of sales recognized, which is presented as a contract liability on the balance sheet. Revisions or adjustments to estimates of the transaction price, estimated costs at completion and estimated profit or loss of a performance obligation are often required as work progresses under a contract, as experience is gained, as facts and circumstances change and as new information is obtained, even though the scope of work required under the contract may not change. Revisions or adjustments may also be required if contract modifications occur. The impact of revisions in profit or loss estimates are recognized on a cumulative catch-up basis in the period in which the revisions are made. The revisions in contract estimates, if significant, can materially affect the Company’s results of operations and cash flows, as well as reduce the valuations of contract assets and inventories, and in some cases result in liabilities to complete contracts in a loss position. |
Remaining Performance Obligations | Remaining Performance Obligations On March 31, 2018, the Company had $269 million of remaining performance obligations, which represents the transaction price of firm orders less inception to date sales recognized. Remaining performance obligations exclude unexercised contract options and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales sales relating to existing performance obligations within three years. |
Income Taxes | Income Taxes The Company’s operations in Colombia are subject to the taxing jurisdiction of the Republic of Colombia. Tecnoglass LLC and Tecnoglass RE LLC are subject to the taxing jurisdiction of the United States. TGI and Tecnoglass Holding are subject to the taxing jurisdiction of the Cayman Islands. Annual tax periods prior to December 2014 are no longer subject to examination by taxing authorities in Colombia. GM&P, Componenti and ESW LLC are U.S. entities based in Florida subject to U.S. federal and state income taxes. The Company accounts for income taxes using the asset and liability approach of accounting for income taxes (ASC 740 “Income Taxes”). Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets. The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The uncertain income taxes positions are recorded in “Taxes payable” in the consolidated balance sheets. |
Earnings Per Share | Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average number of ordinary shares outstanding during the period. Income per share assuming dilution (diluted earnings per share) would give effect to dilutive options and other potential ordinary shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The following table sets forth the computation of the basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: March 31, 2018 2017 Numerator for basic and diluted earnings per shares Net Income (Loss) $ 10,691 $ 1,031 Denominator Denominator for basic earnings per ordinary share - weighted average shares outstanding 35,339,965 35,292,743 Effect of dilutive securities and stock dividend 463,355 460,402 Denominator for diluted earnings per ordinary share - weighted average shares outstanding 35,803,320 35,753,145 Basic earnings per ordinary share $ 0.30 $ 0.03 Diluted earnings per ordinary share $ 0.30 $ 0.03 The effect of dilutive securities includes 463,355 and 460,402 as of March 31, 2018 and 2017, respectively, for shares potentially issued in relation to the dividends declared. The denominator for basic and diluted earnings per ordinary share for the three months ended March 31, 2017 includes 1,812,313 ordinary shares issued in connection with the share dividend. |
Product Warranties | Product Warranties The Company offers product warranties in connection with the sale and installation of its products that are competitive in the markets in which the products are sold. Standard warranties depend upon the product and service, and are generally from five to ten years for architectural glass, curtain wall, laminated and tempered glass, window and door products. Warranties are not priced or sold separately and do not provide the customer with services or coverages in addition to the assurance that the product complies with original agreed-upon specifications. Claims are settled by replacement of the warrantied products. The Company evaluated historical information regarding claims for replacements under warranties and concluded that the costs that the Company has incurred in relation to these warranties have not been material. |
Non-Operating Income, Net | Non-Operating Income, net The Company recognizes non-operating income from foreign currency transaction gains and losses, interest income on receivables, proceeds from sales of scrap materials and other activities not related to the Company’s operations. Foreign currency transaction gains and losses occur when monetary assets, liabilities, payments and receipts that are denominated in currencies other than the Company’s functional currency are recorded in the Colombian peso accounts of the Company in Colombia. |
Shipping and Handling Costs | Shipping and Handling Costs The Company classifies amounts billed to customers related to shipping and handling as product revenues. The Company records and presents shipping and handling costs in selling expenses. Shipping and handling costs for the three months ended March 31, 2018 and 2017 were $4,732 and $3,132, respectively. |
Dividends Payable | Dividends Payable The company accounts for its dividend declared as a liability under ASC 480 - Distinguishing Liabilities from Equity since the shareholder have the option to elect cash or stock, and reclassifies from dividend payable to additional paid-in capital when shareholders elects a stock dividend instead of cash. The dividend payable is not subject to re-measurement at each balance sheet date since the dividend is a fixed monetary amount known at inception and thus no change in fair value adjustment is necessary. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 reduces diversity in practice by providing guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASU 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. ASU 2016-15 is effective on a retrospective basis for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Adoption of this ASU has no material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under ASU 2016-02, a lessee will recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. ASU 2016-02 retains a distinction between finance leases (i.e. capital leases under current GAAP) and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current GAAP. The amendments of this ASU are effective for reporting periods beginning after December 15, 2018, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements. |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: March 31, 2018 2017 Numerator for basic and diluted earnings per shares Net Income (Loss) $ 10,691 $ 1,031 Denominator Denominator for basic earnings per ordinary share - weighted average shares outstanding 35,339,965 35,292,743 Effect of dilutive securities and stock dividend 463,355 460,402 Denominator for diluted earnings per ordinary share - weighted average shares outstanding 35,803,320 35,753,145 Basic earnings per ordinary share $ 0.30 $ 0.03 Diluted earnings per ordinary share $ 0.30 $ 0.03 |
New Accounting Standards Impl23
New Accounting Standards Implemented (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Condensed Balance Sheet | The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606. December 31, 2017 As Reported Under ASC 605 Adjustments Due to ASC 606 January 1, 2018 As Adjusted Under ASC 606 ASSETS Trade accounts receivable, net $ 110,464 $ (30,223 ) $ 80,241 Inventories 71,656 1,975 73,631 Unbilled receivables on uncompleted contracts 9,996 (9,996 ) - Contract assets - 45,468 45,468 Other Assets 275,884 - 275,884 Total Assets $ 468,000 $ 7,224 $ 475,224 LIABILITIES Contract liabilities - current - 18,945 18,945 Current portion of customer advances on uncompleted contracts 11,429 (11,429 ) - Other current liabilities 13,626 (105 ) 13,521 Current portion of customer advances on uncompleted contracts 1,571 (1,571 ) - Contract liabilities - current - 1,571 1,571 Other Liabilities 319,709 - 319,709 Total liabilities $ 346,335 $ 7,411 $ 353,746 SHAREHOLDERS’ EQUITY Retained earnings 22,212 (187 ) 22,025 Total shareholders’ equity $ 121,665 $ (187 ) $ 121,478 The table below presents the impact of the adoption of ASC 606 on the Company’s balance sheet. March 31, 2018 Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 ASSETS Trade accounts receivable, net $ 111,925 $ (28,670) $ 83,255 Inventories 77,905 1,733 79,638 Unbilled receivables on uncompleted contracts 14,974 (16,822) (1,848) Contract assets - 47,423 47,423 Other Assets 279,634 - 279,634 Total Assets $ 484,438 $ 3,664 $ 488,102 LIABILITIES Contract liabilities - current - 18,831 14,696 Current portion of customer advances on uncompleted contracts 14,974 (14,974) Other current liabilities 13,057 (49) 13,008 Customer advances on uncompleted contracts - non-current 1,130 (1,130) - Contract liabilities - non-current - 1,130 1,130 Other Liabilities 335,080 - 335,080 Total liabilities $ 344,280 $ 3,808 $ 348,088 SHAREHOLDERS’ EQUITY Retained earnings 27,912 (144) 27,768 Total shareholders’ equity $ 140,158 $ (144) $ 140,014 |
Schedule of Statement of Operations | The table below presents the impact of the adoption of ASC 606 on the Company’s statement of operations. Three months ended March 31, 2018 Under ASC 605 Effect of ASC 606 As Reported Under ASC 606 Operating Revenues $ 89,086 $ (1,926 ) $ 87,160 Cost of Sales 62,145 (1,733 ) 60,412 Gross Profit 26,941 (193 ) 26,748 Operating Expenses (16,758 ) - (16,758 ) Other Income and Expenses 6,022 - 6,022 Income Before Tax 16,205 (193 ) 16,012 Income Tax Provision (5,442 ) 49 (5,393 ) Net Income 10,763 (144 ) 10,619 Net Income Attributable to Parent $ 10,835 $ (144 ) $ 10,691 Basic earnings per share $ 0.30 $ - $ 0.30 Diluted earnings per share $ 0.29 $ - $ 0.29 |
Schedule of Disaggregation by Revenue | The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows. Three months ended March 31, 2018 2017 Fixed price contracts $ 42,216 $ 21,720 Standard form sales 44,944 44,097 Total Revenues $ 87,160 $ 65,817 |
Schedule of Geographical Information of Revenue from External Customer | The following table presents geographical information about revenues from external customers. Three months ended March 31, 2018 2017 Colombia $ 21,824 $ 16,428 United States 62,993 46,308 Panama 814 1,263 Other 1,529 1,818 Total Revenues $ 87,160 $ 65,817 |
Schedule of Contract Assets and Liabilities | The table below presents the components of net contract assets (liabilities). March 31, 2018 January 1 2018 Contract assets $ 47,423 $ 45,468 Contract liabilities — current 14,696 18,945 Contract liabilities — non-current 1,130 1,571 Net contract assets (liabilities) $ 63,249 $ 65,984 The components of contract assets are presented in the table below. March 31, 2018 January 1 2018 Unbilled contract receivables, gross $ 18,753 $ 15,245 Retainage 28,670 30,223 Net contract assets (liabilities) $ 47,423 $ 45,468 The components of contract liabilities are presented in the table below. March 31, 2018 January 1 2018 Billings in excess of costs $ 3,779 $ 7,516 Advances from customers on uncompleted contracts 12,047 13,000 Total contract liabilties 15,826 20,516 Less: current portion 14,696 18,945 Contract liabilities – non-current $ 1,130 $ 1,571 |
GM&P Acquisitions (Tables)
GM&P Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation of Total Consideration Transferred | The following table summarizes the purchase price allocation of the total consideration transferred: Consideration Transferred: Notes payable (Cash or Stock) $ 35,000 Fair value of the non-controlling interest in Componenti 1,141 Recognized amounts of identifiable assets acquired and liabilities assumed: Preliminary Purchase Price Allocation Measurement Period Adjustments Final Purchase Price Allocation Cash and equivalents $ 509 509 Accounts receivable 42,314 42,314 Other current assets 5,287 242 5,529 Property, plant, and equipment 684 684 Other non-current tangible assets 59 59 Trade name 980 980 Non-compete agreement 165 165 Contract backlog 3,090 3,090 Customer relationships 4,140 4,140 Accounts payable (22,330 ) 275 (22,055 ) Other current liabilities assumed (13,967 ) (673 ) (14,640 Non-current liabilities assumed (3,634 ) (3,231 ) (6,865 ) Total identifiable net assets 17,297 (3,387 ) 13,910 Goodwill (including Workforce) $ 18,844 3,387 $ 22,231 |
Schedule of Pro Forma Results of Operations | The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the following unaudited pro forma results. Pro-Forma Three months Ended (in thousands, except per share amounts) March 31, 2017 Pro Forma Results Net sales $ 75.804 Net (loss) income attributable to parent $ (35 ) Net income per common share: Basic $ (0.00 ) Diluted $ (0.00 ) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are comprised of the following: March 31, 2018 December 31, 2017 Raw materials $ 39,589 $ 40,509 Work in process 19,422 11,468 Finished goods 13,167 13,236 Stores and spares 7,017 6,134 Packing material 579 438 79,774 71,785 Less: Inventory allowance (136 ) (129 ) $ 79,638 $ 71,656 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The table below provides a reconciliation of the beginning and ending balances of the Goodwill recorded on the Company’s balance sheet: Beginning balance - December 31, 2017 $ 23,130 GM&P measurement period adjustment 431 Ending balance – March 31, 2018 $ 23,561 |
Schedule of Finite-Lived Intangible Assets | Intangible assets include Miami-Dade County Notices of Acceptances (NOA’s), which are certificates in the required to market hurricane- resistant glass in Florida. Also, it includes the intangibles acquired from the acquisition of GM&P. March 31, 2018 Gross Acc. Amort. Net Trade Names $ 980 $ (212 ) $ 768 Notice of Acceptances (NOAs), product designs and other intellectual property 10,593 (4,793 ) 5,800 Non-compete Agreement 165 (36 ) 129 Contract Backlog 3,090 (1,674 ) 1,416 Customer Relationships 4,140 (961 ) 3,179 Total $ 18,968 $ (7,676 ) $ 11,292 December 31, 2017 Gross Acc. Amort. Net Trade Names $ 980 $ (163 ) $ 817 Notice of Acceptances (NOAs), product designs and other intellectual property 10,826 (5,467 ) 5,359 Non-compete Agreement 165 (28 ) 137 Contract Backlog 3,090 (1,287 ) 1,803 Customer Relationships 4,140 (739 ) 3,401 Total $ 19,201 $ (7,684 ) $ 11,517 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding years as of March 31, 2018 is as follows: Year ending (in thousands) 2018 $ 2,945 2019 2,526 2020 2,146 2021 2,115 2022 1,176 Thereafter 384 $ 11,292 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The Company’s debt is comprised of the following: March 31, 2018 December 31, 2017 Revolving lines of credit $ 2,422 $ 638 Capital lease 222 245 Unsecured senior note 210,000 210,000 Other loans 19,997 20,293 Less: Deferred cost of financing (7,068 ) (6,918 ) Total obligations under borrowing arrangements 225,573 224,258 Less: Current portion of long-term debt and other current borrowings 5,812 3,260 Long-term debt $ 219,761 $ 220,998 |
Schedule of Maturities of Long Term Debt | Maturities of long term debt and other current borrowings are as follows as of March 31, 2018: 2019 $ 5,812 2020 2,408 2021 2,377 2022 212,359 2023 2,358 Thereafter 7,327 Total $ 232,641 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: March 31, 2018 December 31, 2017 Current income tax United States $ 407 $ 452 Colombia 2,205 2,280 2,612 2,732 Deferred income Tax United States 169 380 Colombia 2,612 (2,070 ) 2,781 (1,690 ) Total Provision for Income Tax $ 5,393 $ 1,042 Effective tax rate 33.7 % 50.3 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Carrying Amounts of Long Term Debt | The following table summarizes the fair value and carrying amounts of our long-term debt: March 31, 2018 December 31, 2017 Fair Value 239,739 240,057 Carrying Value 219,761 220,998 |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties | The following is a summary of assets, liabilities, and income and expense transactions with all related parties, shareholders, directors and managers: Three months ended March 31, 2018 2017 Sales to related parties $ 953 $ 1,374 Fees paid to directors and officers $ 827 $ 710 Payments to other related parties $ 988 $ 806 March 31, 2018 December 31, 2017 Current Assets: Due from VS $ 5,414 $ 6,240 Due from other related parties 2,893 2,260 $ 8,307 $ 8,500 Liabilities: Due to related parties $ 962 $ 975 |
General (Details Narrative)
General (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2017 | Mar. 01, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Ordinary shares issued, shares | 1,812,313 | |||
Giovanni Monti and Partners Consulting and Glazing Contractors [Member] | ||||
Business combination, step acquisition, equity interest in acquire, percentage | 100.00% | |||
Purchase price of business acquired | $ 35,000 | |||
Cash | $ 6,000 | |||
Ordinary shares issued, shares | 1,238,095 | |||
Sale of stock, price per share | $ 10.50 | |||
Ordinary shares issued, amount | $ 10,000 | |||
Debt due date | Mar. 1, 2022 | |||
Giovanni Monti and Partners Consulting and Glazing Contractors [Member] | April 2018 [Member] | ||||
Cash | $ 6,000 | |||
Giovanni Monti and Partners Consulting and Glazing Contractors [Member] | May 15, 2018 [Member] | ||||
Cash | $ 29,000 |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Numbershares | Mar. 31, 2017USD ($)shares | Jan. 02, 2018USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of operating segment | Number | 1 | ||
Changes in cumulative effect of shareholders' equity | $ 187 | ||
Retainage, description | The Companys fixed-price type contracts allow for progress payments to bill the customer as contract costs are incurred and the customer often retains a small portion of the contract price until satisfactory completion of the contractual statement of work, which is a retainage of approximately 10%. | ||
Remaining performance obligation | $ 269,000 | ||
Performance obligation, percentage | 100.00% | ||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 463,355 | 460,402 | |
Ordinary shares issued, shares | shares | 1,812,313 | ||
Product warranties description | The Company offers product warranties in connection with the sale and installation of its products that are competitive in the markets in which the products are sold. Standard warranties depend upon the product and service, and are generally from five to ten years for architectural glass, curtain wall, laminated and tempered glass, window and door products. | ||
Shipping and handling costs | $ 4,732 | $ 3,132 | |
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of non-controlling interest | 100.00% |
Basis of Presentation and Sum33
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) | $ 10,691 | $ 1,031 |
Denominator for basic earnings per ordinary share - weighted average shares outstanding | 35,339,965 | 35,292,743 |
Effect of dilutive securities and stock dividend | 463,355 | 460,402 |
Denominator for diluted earnings per ordinary share - weighted average shares outstanding | 35,803,320 | 35,753,145 |
Basic earnings per ordinary share | $ 0.3 | $ 0.03 |
Diluted earnings per ordinary share | $ 0.30 | $ 0.03 |
New Accounting Standards Impl34
New Accounting Standards Implemented (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Retained earnings | $ 27,768 | $ 22,212 | |
Accounting Standards Update 2014-09 [Member] | |||
Retained earnings | $ 187 |
New Accounting Standards Impl35
New Accounting Standards Implemented - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Trade accounts receivable, net | $ 83,255 | $ 110,464 | |
Inventories | 79,638 | 71,656 | |
Unbilled receivables on uncompleted contracts | 9,996 | ||
Contract assets | 47,423 | $ 45,468 | |
Other Assets | 279,634 | 275,884 | |
Total Assets | 488,102 | 468,000 | |
Contract liabilities - current | 14,696 | 18,945 | |
Current portion of customer advances on uncompleted contracts | 11,429 | ||
Other current liabilities | 13,008 | 13,626 | |
Customer advances on uncompleted contracts - non-current | 1,571 | ||
Contract liabilities - non-current | 1,130 | $ 1,571 | |
Other Liabilities | 335,080 | ||
Total liabilities | 348,088 | 346,335 | |
Retained earnings | 27,768 | 22,212 | |
Total shareholders’ equity | 140,014 | 121,665 | |
Adjustments Due to ASC 606 [Member] | |||
Trade accounts receivable, net | (30,223) | ||
Inventories | 1,975 | ||
Unbilled receivables on uncompleted contracts | (9,996) | ||
Contract assets | 45,468 | ||
Other Assets | |||
Total Assets | 7,224 | ||
Contract liabilities - current | 18,945 | ||
Current portion of customer advances on uncompleted contracts | (11,429) | ||
Other current liabilities | (105) | ||
Customer advances on uncompleted contracts - non-current | (1,571) | ||
Contract liabilities - non-current | 1,571 | ||
Other Liabilities | |||
Total liabilities | 7,411 | ||
Retained earnings | (187) | ||
Total shareholders’ equity | (187) | ||
As Adjusted Under ASC 606 [Member] | |||
Trade accounts receivable, net | 80,241 | ||
Inventories | 73,631 | ||
Unbilled receivables on uncompleted contracts | |||
Contract assets | 45,468 | ||
Other Assets | 275,884 | ||
Total Assets | 475,224 | ||
Contract liabilities - current | 18,945 | ||
Current portion of customer advances on uncompleted contracts | |||
Other current liabilities | 13,521 | ||
Customer advances on uncompleted contracts - non-current | |||
Contract liabilities - non-current | 1,571 | ||
Other Liabilities | 319,709 | ||
Total liabilities | 353,746 | ||
Retained earnings | 22,025 | ||
Total shareholders’ equity | $ 121,478 | ||
Under ASC 605 [Member] | |||
Trade accounts receivable, net | 111,925 | ||
Inventories | 77,905 | ||
Unbilled receivables on uncompleted contracts | 14,974 | ||
Contract assets | |||
Other Assets | 279,634 | ||
Total Assets | 484,438 | ||
Contract liabilities - current | |||
Current portion of customer advances on uncompleted contracts | 14,974 | ||
Other current liabilities | 13,057 | ||
Customer advances on uncompleted contracts - non-current | 1,130 | ||
Other Liabilities | 335,080 | ||
Total liabilities | 344,280 | ||
Retained earnings | 27,912 | ||
Total shareholders’ equity | 140,158 | ||
Effect of ASC 606 [Member] | |||
Trade accounts receivable, net | (28,670) | ||
Inventories | 1,733 | ||
Unbilled receivables on uncompleted contracts | (16,822) | ||
Contract assets | 47,423 | ||
Other Assets | |||
Total Assets | 3,664 | ||
Contract liabilities - current | 18,831 | ||
Current portion of customer advances on uncompleted contracts | (14,974) | ||
Other current liabilities | (49) | ||
Customer advances on uncompleted contracts - non-current | (1,130) | ||
Contract liabilities - non-current | 1,130 | ||
Other Liabilities | |||
Total liabilities | 3,808 | ||
Retained earnings | (144) | ||
Total shareholders’ equity | $ (144) |
New Accounting Standards Impl36
New Accounting Standards Implemented - Schedule of Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating Revenues | $ 87,160 | $ 65,817 | |
Cost of Sales | 60,412 | 43,565 | |
Gross Profit | 26,748 | 22,252 | |
Operating Expenses | (16,758) | (15,390) | |
Other Income and Expenses | 6,022 | ||
Income Before Taxes | 16,012 | 2,073 | |
Income Tax Provision | (5,393) | (1,042) | $ (1,042) |
Net Income | 10,691 | 1,031 | |
Net Income Attributable to Parent | $ 10,691 | $ 1,019 | |
Basic earnings per share | $ 0.3 | $ 0.03 | |
Diluted earnings per share | $ 0.30 | $ 0.03 | |
Under ASC 605 [Member] | |||
Operating Revenues | $ 89,086 | ||
Cost of Sales | 62,145 | ||
Gross Profit | 26,941 | ||
Operating Expenses | (16,758) | ||
Other Income and Expenses | 6,022 | ||
Income Before Taxes | 16,205 | ||
Income Tax Provision | 5,442 | ||
Net Income | 10,763 | ||
Net Income Attributable to Parent | $ 10,835 | ||
Basic earnings per share | $ 0.3 | ||
Diluted earnings per share | $ 0.29 | ||
Effect of ASC 606 [Member] | |||
Operating Revenues | $ (1,926) | ||
Cost of Sales | (1,733) | ||
Gross Profit | (193) | ||
Operating Expenses | |||
Other Income and Expenses | |||
Income Before Taxes | (193) | ||
Income Tax Provision | 49 | ||
Net Income | (144) | ||
Net Income Attributable to Parent | $ (144) | ||
Basic earnings per share | |||
Diluted earnings per share |
New Accounting Standards Impl37
New Accounting Standards Implemented - Schedule of Disaggregation by Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total Revenues | $ 87,160 | $ 65,817 |
Fixed Price Contracts [Member] | ||
Total Revenues | 42,216 | 21,720 |
Standard form sales [Member] | ||
Total Revenues | $ 44,944 | $ 44,097 |
New Accounting Standards Impl38
New Accounting Standards Implemented - Schedule of Geographical Information of Revenue from External Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total Revenues | $ 87,160 | $ 65,817 |
Colombia [Member] | ||
Total Revenues | 21,824 | 16,428 |
United States [Member] | ||
Total Revenues | 62,993 | 46,308 |
Panama [Member] | ||
Total Revenues | 814 | 1,263 |
Other [Member] | ||
Total Revenues | $ 1,529 | $ 1,818 |
New Accounting Standards Impl39
New Accounting Standards Implemented - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Accounting Changes and Error Corrections [Abstract] | |||
Contract assets | $ 47,423 | $ 45,468 | |
Contract liability - current portion | 14,696 | 18,945 | |
Contract liability - non-current | 1,130 | 1,571 | |
Net contract assets (liabilities) | $ 63,249 | $ 65,984 |
New Accounting Standards Impl40
New Accounting Standards Implemented - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Accounting Changes and Error Corrections [Abstract] | |||
Unbilled contract receivables, gross | $ 18,753 | $ 15,245 | |
Retainage | 28,670 | 30,223 | |
Net contract assets (liabilities) | $ 47,423 | $ 45,468 |
New Accounting Standards Impl41
New Accounting Standards Implemented - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Accounting Changes and Error Corrections [Abstract] | |||
Billings in excess of costs | $ 3,779 | $ 7,516 | |
Advances from customers on uncompleted contracts | 12,047 | 13,000 | |
Total contract liabilities | 15,826 | 20,516 | |
Less: current portion | 14,696 | 18,945 | |
Contract liabilities – non-current | $ 1,130 | $ 1,571 |
GM&P Acquisitions (Details Narr
GM&P Acquisitions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2017 | Mar. 01, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Ordinary shares issued, shares | 1,812,313 | |||
Fair value of non-controlling interest amount | $ 1,141 | |||
Maximum [Member] | ||||
Percentage of non-controlling interest | 100.00% | |||
Giovanni Monti and Partners Consulting and Glazing Contractors [Member] | ||||
Business combination, step acquisition, equity interest in acquired, percentage | 100.00% | |||
Purchase price of business acquired | $ 35,000 | |||
Cash | $ 6,000 | |||
Ordinary shares issued, shares | 1,238,095 | |||
Sale of stock, price per share | $ 10.50 | |||
Ordinary shares issued, amount | $ 10,000 | |||
Acquisition of equity interest | 60.00% | |||
Giovanni Monti and Partners Consulting and Glazing Contractors, Inc [Member] | April 4, 2018 [Member] | ||||
Cash | $ 6,000 | |||
Ordinary shares issued, shares | 1,238,095 | |||
Sale of stock, price per share | $ 10.50 | |||
Ordinary shares issued, amount | $ 13,000 | |||
Subordinate debt, due date | Mar. 1, 2022 | |||
Componenti USA LLC [Member] | ||||
Business combination, step acquisition, equity interest in acquired, percentage | 60.00% | |||
Percentage of non-controlling interest | 40.00% | |||
Fair value of non-controlling interest amount | $ 1,141 |
GM&P Acquisitions - Summary of
GM&P Acquisitions - Summary of Purchase Price Allocation of Total Consideration Transferred (Details) $ in Thousands | Mar. 01, 2017USD ($) |
Notes payable (Cash or Stock) | $ 35,000 |
Fair value of the non-controlling interest in Component | 1,141 |
Preliminary Purchase Price Allocation [Member] | |
Cash and equivalents | 509 |
Accounts receivable | 42,314 |
Other current assets | 5,287 |
Property, plant, and equipment | 684 |
Other non-current tangible assets | 59 |
Trade name | 980 |
Non-compete agreement | 165 |
Contract backlog | 3,090 |
Customer relationships | 4,140 |
Accounts payable | (22,330) |
Other current liabilities assumed | (13,967) |
Non-current liabilities assumed | (3,634) |
Total identifiable net assets | 17,297 |
Goodwill (including Workforce) | 18,844 |
Measurement Period Adjustments [Member] | |
Cash and equivalents | |
Accounts receivable | |
Other current assets | 242 |
Property, plant, and equipment | |
Other non-current tangible assets | |
Trade name | |
Non-compete agreement | |
Contract backlog | |
Customer relationships | |
Accounts payable | 275 |
Other current liabilities assumed | (673) |
Non-current liabilities assumed | (3,231) |
Total identifiable net assets | (3,387) |
Goodwill (including Workforce) | 3,387 |
Final Purchase Price Allocation [Member] | |
Cash and equivalents | 509 |
Accounts receivable | 42,314 |
Other current assets | 5,529 |
Property, plant, and equipment | 684 |
Other non-current tangible assets | 59 |
Trade name | 980 |
Non-compete agreement | 165 |
Contract backlog | 3,090 |
Customer relationships | 4,140 |
Accounts payable | (22,055) |
Other current liabilities assumed | 14,640 |
Non-current liabilities assumed | (6,865) |
Total identifiable net assets | 13,910 |
Goodwill (including Workforce) | $ 22,231 |
GM&P Acquisitions - Schedule of
GM&P Acquisitions - Schedule of Pro Forma Results of Operations (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
Business Combinations [Abstract] | |
Net sales | $ | $ 75,804 |
Net (loss) income attributable to parent | $ | $ (35) |
Net income per common share - Basic | $ / shares | $ 0 |
Net income per common share - Diluted | $ / shares | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 39,589 | $ 40,509 |
Work in process | 19,422 | 11,468 |
Finished goods | 13,167 | 13,236 |
Stores and spares | 7,017 | 6,134 |
Packing material | 579 | 438 |
Total Inventories | 79,774 | 71,785 |
Less: inventory allowances | (136) | (129) |
Total inventories, net | $ 79,638 | $ 71,656 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Weighted average amortization period | 4 years 10 months 25 days | |
Amortization expense | $ 863 | $ 610 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance - December 31, 2017 | $ 23,130 |
GM&P measurement period adjustment | 431 |
Ending balance - March 31, 2018 | $ 23,561 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Income Tax [Line Items] | ||
Intangible assets, Gross | $ 18,968 | $ 19,201 |
Accumulated Amortization | (7,676) | (7,684) |
Intangible assets, net | 11,292 | 11,517 |
Trade Names [Member] | ||
Income Tax [Line Items] | ||
Intangible assets, Gross | 980 | 980 |
Accumulated Amortization | (212) | (163) |
Intangible assets, net | 768 | 817 |
Notice of Acceptances (NOAs), Product Designs and Other Intellectual Property [Member] | ||
Income Tax [Line Items] | ||
Intangible assets, Gross | 10,593 | 10,826 |
Accumulated Amortization | (4,793) | (5,467) |
Intangible assets, net | 5,800 | 5,359 |
Non-compete Agreements [Member] | ||
Income Tax [Line Items] | ||
Intangible assets, Gross | 165 | 165 |
Accumulated Amortization | (36) | (28) |
Intangible assets, net | 129 | 137 |
Contract Backlog [Member] | ||
Income Tax [Line Items] | ||
Intangible assets, Gross | 3,090 | 3,090 |
Accumulated Amortization | (1,674) | (1,287) |
Intangible assets, net | 1,416 | 1,803 |
Customer Relationships [Member] | ||
Income Tax [Line Items] | ||
Intangible assets, Gross | 4,140 | 4,140 |
Accumulated Amortization | (961) | (739) |
Intangible assets, net | $ 3,179 | $ 3,401 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 2,945 | |
2,019 | 2,526 | |
2,020 | 2,146 | |
2,021 | 2,115 | |
2,022 | 1,176 | |
Thereafter | 384 | |
Intangible assets, net | $ 11,292 | $ 11,517 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | Jan. 23, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Debt face amount | $ 231,667 | $ 224,041 | ||
Senior unsecured notes | $ 210,000 | 210,000 | 210,000 | |
Debt instrument, term | 5 years | |||
Unsecured notes coupon rate | 8.20% | |||
Proceeds to repay outstanding indebtedness | $ 179,000 | |||
Repayment of debt | $ 59,444 | 2,726 | $ 202,900 | |
Capital lease obligations minimum lease payments | $ 222 | |||
Loan maturity period | Few weeks to 11 years | |||
Debt, weighted average interest rate | 7.80% | |||
Interest expense | $ 5,050 | $ 5,082 | ||
Property, Plant and Equipment [Member] | ||||
Debt instrument, collateral amount | $ 4,828 | $ 4,758 |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Jan. 23, 2017 |
Debt Disclosure [Abstract] | |||
Revolving lines of credit | $ 2,422 | $ 638 | |
Capital lease | 222 | 245 | |
Unsecured senior note | 210,000 | 210,000 | $ 210,000 |
Other loans | 19,997 | 20,293 | |
Less: Deferred cost of Financing | (7,068) | (6,918) | |
Total obligations under borrowing arrangements | 225,573 | 224,258 | |
Less: Current portion of long-term debt and other current borrowings | 5,812 | 3,260 | |
Long-term debt | $ 219,761 | $ 220,998 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long Term Debt (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 5,812 |
2,020 | 2,408 |
2,021 | 2,377 |
2,022 | 212,359 |
2,023 | 2,358 |
Thereafter | 7,327 |
Total | $ 232,641 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | Dec. 28, 2016 | Mar. 31, 2018 | Dec. 31, 2017 |
Income Tax [Line Items] | |||
Effective income tax rate reconciliation, percent | 33.70% | 50.30% | |
State and federal income tax rate | 25.00% | ||
Unrecognized tax benefits | $ 8,351 | ||
Earn Out Share Liability [Member] | |||
Income Tax [Line Items] | |||
Uncertain tax position | $ 2,073 | ||
Tax Year 2017 [Member] | Maximum [Member] | |||
Income Tax [Line Items] | |||
Effective income tax rate reconciliation, percent | 42.00% | ||
Tax Year 2017 [Member] | Minimum [Member] | |||
Income Tax [Line Items] | |||
Effective income tax rate reconciliation, percent | 40.00% | ||
Tax Year 2018 [Member] | |||
Income Tax [Line Items] | |||
Effective income tax rate reconciliation, percent | 37.00% | ||
Tax Year 2019 and Thereafter [Member] | |||
Income Tax [Line Items] | |||
Effective income tax rate reconciliation, percent | 33.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current income tax, United States | $ 407 | $ 452 | |
Current income tax, Colombia | 2,205 | 2,280 | |
Total current income tax | 2,612 | 2,732 | |
Deferred income tax, United States | 169 | 380 | |
Deferred income Tax, Colombia | 2,612 | (2,070) | |
Total deferred income tax | 2,781 | (1,690) | |
Total Provision for Income Tax | $ 5,393 | $ 1,042 | $ 1,042 |
Effective tax rate | 33.70% | 50.30% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value and Carrying Amounts of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Summary of The Fair Value And Carrying Amounts of Long Term Debt [Line Items] | ||
Carrying Value | $ 225,573 | $ 224,258 |
Fair Value, Inputs, Level 2 [Member] | ||
Summary of The Fair Value And Carrying Amounts of Long Term Debt [Line Items] | ||
Fair Value | 239,739 | 240,057 |
Carrying Value | $ 219,761 | $ 220,998 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transactions [Line Items] | ||
Sales revenue | $ 953 | $ 1,374 |
Payments to charitable contribution | 271 | 416 |
Sales commissions | 341 | 241 |
Ventanas Solar SA [Member] | ||
Related Party Transactions [Line Items] | ||
Sales revenue | $ 626 | $ 1,150 |
CEO,COO and Other Related Parties [Member] | ||
Related Party Transactions [Line Items] | ||
Equity percentage | 100.00% |
Related Parties - Schedule of R
Related Parties - Schedule of Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Sales to related parties | $ 953 | $ 1,374 | |
Fees paid to Directors and Officers | 827 | 710 | |
Payments to other related parties | 988 | $ 806 | |
Due from VS | 5,414 | $ 6,240 | |
Due from other related parties | 2,893 | 2,260 | |
Due from Related Parties, Current | 8,305 | 8,500 | |
Due to related parties | $ 962 | $ 975 |
Dividends Payable (Details Narr
Dividends Payable (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 11, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2016 |
Dividend payable | $ 869 | |||
Dividend paid to shareholders shares | 499,080 | |||
Quarterly Rate [Member] | ||||
Dividends payable, amount per share | $ 0.14 | $ 0.125 | ||
Dividends price percentage | 12.00% | |||
Annual Basis [Member] | ||||
Dividends payable, amount per share | $ 0.56 | $ 0.50 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase of aggregate raw material | $ 39,144 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 05, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Ordinary shares issued, shares | 1,812,313 | ||
Debt instrument maturity date | Few weeks to 11 years | ||
Subsequent Event [Member] | |||
Ordinary shares issued, shares | 1,238,095 | ||
Ordinary shares issued, amount | $ 10,000 | ||
Shares issued price per share | $ 10.50 | ||
Ordinary shares premium percentage | 23.00% | ||
Subsequent Event [Member] | Giovanni Monti and Partners Consulting [Member] | |||
Purchase price of business acquired | $ 29,000 | ||
Cash | 6,000 | ||
Subsequent Event [Member] | Giovanni Monti and Partners Consulting [Member] | Junior Subordinated Note [Member] | |||
Purchase price of business acquired | $ 10,000 | ||
Ordinary shares issued, shares | 1,238,095 | ||
Interest rate | 6.00% | ||
Debt instrument maturity date | March 2,022 |