Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | 12-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'UniTek Global Services, Inc. | ' |
Entity Central Index Key | '0000826773 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 19,233,367 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $721 | $1,842 |
Restricted cash | 12,754 | 0 |
Accounts receivable, net of allowances | 72,980 | 73,358 |
Inventories | 12,468 | 15,187 |
Prepaid insurance | 8,985 | 6,599 |
Other current assets | 3,091 | 4,108 |
Total current assets | 110,999 | 101,094 |
Restricted cash | 0 | 16,767 |
Property and equipment, net of accumulated depreciation of $51,090 and $49,189 | 12,838 | 14,912 |
Amortizable intangible assets, net | 32,354 | 33,963 |
Goodwill | 88,447 | 98,579 |
Other assets, net | 4,968 | 5,233 |
Total assets | 249,606 | 270,548 |
CURRENT LIABILITIES | ' | ' |
Current portion of debt | 25,148 | 7,502 |
Current portion of capital lease obligations | 4,302 | 4,849 |
Accounts payable | 30,291 | 23,906 |
Accrued insurance | 17,111 | 17,719 |
Accrued compensation and benefits | 4,111 | 7,965 |
Other current liabilities | 14,811 | 17,296 |
Total current liabilities | 95,774 | 79,237 |
Debt, net of current portion | 157,239 | 174,044 |
Capital lease obligations, net of current portion | 2,290 | 3,509 |
Other liabilities | 2,029 | 2,299 |
Total liabilities | 257,332 | 259,089 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS’ (DEFICIT) EQUITY | ' | ' |
Preferred Stock, $0.00002 par value (20,000 shares authorized, no shares issued or outstanding) | 0 | 0 |
Common Stock, $0.00002 par value (200,000 shares authorized, 19,227 and 19,039 issued and outstanding) | 0 | 0 |
Additional paid-in capital | 275,756 | 275,274 |
Accumulated other comprehensive income | 47 | 89 |
Accumulated deficit | -283,529 | -263,904 |
Total stockholders’ (deficit) equity | -7,726 | 11,459 |
Total liabilities and stockholders’ (deficit) equity | $249,606 | $270,548 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Property and equipment, net - accumulated depreciation | $51,090 | $49,189 |
Amortizable intangible assets, net | 32,354 | 33,963 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, number of shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, number of shares issued | 0 | 0 |
Preferred stock, number of shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, number of shares authorized | 200,000,000 | 200,000,000 |
Common stock, number of shares issued | 19,227,000 | 19,039,000 |
Common stock, number of shares outstanding | 19,227,000 | 19,039,000 |
Customer Relationships [Member] | ' | ' |
Amortizable intangible assets, net | $30,882 | $32,263 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income or Loss (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Income Statement [Abstract] | ' | ' |
Revenues | $88,600 | $113,838 |
Cost of revenues | 75,329 | 95,251 |
Gross profit | 13,271 | 18,587 |
Selling, general and administrative expenses | 10,219 | 13,138 |
Income related to contingent consideration | 0 | -114 |
Restructuring, restatement and investigation related costs | 871 | 1,877 |
Impairment charge | 10,100 | 0 |
Depreciation and amortization | 4,022 | 6,047 |
Operating loss | -11,941 | -2,361 |
Interest expense | 8,356 | 4,634 |
Other income, net | -612 | -12 |
Loss from continuing operations before income taxes | -19,685 | -6,983 |
Income tax (benefit) expense | -60 | 60 |
Loss from continuing operations | -19,625 | -7,043 |
Loss from discontinued operations | 0 | -621 |
Net loss | -19,625 | -7,664 |
Other comprehensive income or loss: | ' | ' |
Foreign currency translation | -43 | 17 |
Comprehensive loss | ($19,668) | ($7,647) |
Net loss per share – basic and diluted | ' | ' |
Continuing operations (in dollars per share) | ($1.02) | ($0.37) |
Discontinued operations (in dollars per share) | $0 | ($0.03) |
Total (in dollars per share) | ($1.02) | ($0.40) |
Weighted average shares of common stock outstanding - basic and diluted (in shares) | 19,218 | 18,935 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($19,625) | ($7,664) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Provision for doubtful accounts | 315 | 907 |
Depreciation and amortization | 4,022 | 6,079 |
Impairment charge | 10,100 | 0 |
Interest and fees added to debt principal | 1,080 | 400 |
Amortization of deferred financing costs and debt discount | 1,215 | 0 |
Income related to contingent consideration | 0 | -114 |
Stock-based compensation | 519 | 767 |
Gain on sale of property and equipment | -618 | -21 |
Deferred income taxes, net | -61 | 70 |
Changes in working capital: | ' | ' |
Accounts receivable | 64 | 15,522 |
Inventories | 2,719 | -1,771 |
Prepaid expenses and other assets | -1,276 | 988 |
Accounts payable and other liabilities | -774 | -8,563 |
Net cash (used in) provided by operating activities | -2,320 | 6,600 |
Cash flows from investing activities: | ' | ' |
Acquisition of property and equipment | -451 | -517 |
Proceeds from sale of property and equipment | 206 | 205 |
Net cash used in investing activities | -245 | -312 |
Cash flows from financing activities: | ' | ' |
Repayment of revolving credit facilities, net | -1,252 | -6,695 |
Repayment of term loan facilities | 0 | -285 |
Repayment of capital lease obligations | -1,243 | -1,790 |
Release of cash restricted by collateralized letters of credit | 4,012 | 0 |
Other financing activities | -66 | 0 |
Net cash provided by (used in) financing activities | 1,451 | -8,770 |
Effect of exchange rate on cash and cash equivalents | -7 | 79 |
Net decrease in cash and cash equivalents | -1,121 | -2,403 |
Cash and cash equivalents at beginning of period | 1,842 | 3,836 |
Cash and cash equivalents at end of period | 721 | 1,433 |
Supplemental cash flow information: | ' | ' |
Interest paid | 3,761 | 3,472 |
Income taxes paid | $0 | $310 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of UniTek Global Services, Inc. and its subsidiaries (“UniTek” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the United States Securities and Exchange Commission. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal and recurring nature, necessary to present fairly its results of its operations and cash flows at the dates and for the periods indicated. All intercompany transactions and balances among subsidiaries have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results for the full fiscal year. | |
The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s most recently filed Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Those audited consolidated financial statements include a summary of the Company’s significant accounting policies, to which there have been no significant changes. | |
We experienced losses of $19.6 million and $52.1 million in the three months ended March 29, 2014 and for the year ended December 31, 2013, respectively. While a portion of these losses were non-cash charges or resulted from unusual events, if the Company is unable to improve profitability, reduce long-term debt or obtain additional financing, the resultant lack of liquidity or the potential inability to comply with long-term debt covenants could have a material adverse effect on the Company’s operations. At March 29, 2014, in addition to cash on hand, the Company had availability under its revolving loan facility of $4.8 million, and it had the ability to borrow up to an incremental $11.3 million if underlying eligible receivables increase. | |
Use of Estimates | |
The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses, and certain of the amounts contained in the notes to the unaudited condensed consolidated financial statements. Although such assumptions are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results could differ significantly from those estimates and assumptions. The Company’s more significant estimates relate to revenue recognition, impairment testing of goodwill and other long-lived assets, fair value measurements, the allowance for doubtful accounts, accrued insurance, income taxes and contingencies. | |
In the ordinary course of accounting for the items discussed above, the Company makes changes in estimates as appropriate and as the Company becomes aware of circumstances surrounding those changes. Such changes in estimates are reflected in reported results of operations in the period in which the changes are made, and if material, their effects are disclosed in the notes to the unaudited condensed consolidated financial statements. | |
Net Loss per Share | |
Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods presented. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods adjusted for the dilutive effect, if any, of the exercise or conversion of instruments into common stock, such as non-vested restricted stock units, non-vested restricted shares, warrants or redeemable obligations. | |
During the three months ended March 29, 2014 and March 30, 2013, there were no differences in the amount of basic and diluted net loss per share. Common shares from the potential redemption of a redeemable obligation into 3.7 million common shares, the potential exercise of warrants for 3.9 million common shares and the potential issuance of 1.6 million common shares related to outstanding stock-based compensation awards were excluded from the calculations of diluted net loss per share because their effects were anti-dilutive. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which clarifies when a disposal of a component of an entity or a group of components of an entity is to be reported in discontinued operations. We do not expect the adoption of this accounting guidance to have a material effect on our consolidated financial statements. ASU 2014-08 is effective prospectively for fiscal years, and interim period within those years, beginning after December 15, 2014. |
Accounts_Receivable_Net_of_All
Accounts Receivable, Net of Allowances | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable, Net of Allowances | ' | |||||||
Accounts Receivable, Net of Allowances | ||||||||
The following table presents the components of accounts receivable, net of allowances: | ||||||||
(in thousands) | 29-Mar-14 | 31-Dec-13 | ||||||
Trade accounts receivable | $ | 20,143 | $ | 16,308 | ||||
Contract billings | 27,707 | 30,928 | ||||||
Unbilled contract revenues | 25,782 | 26,915 | ||||||
Other unbilled revenues | 2,406 | 1,376 | ||||||
Retainage | 2,507 | 2,698 | ||||||
Accounts receivable, gross | 78,545 | 78,225 | ||||||
Allowance for doubtful accounts | (5,565 | ) | (4,867 | ) | ||||
Accounts receivable, net of allowances | $ | 72,980 | $ | 73,358 | ||||
All trade accounts receivable and other unbilled revenues are expected to be collected within the next year. We expect that a substantial majority of contract billings and unbilled contract revenues will be collected within the next year. Retainage has been billed but is not due until completion of performance and acceptance by customers according to the terms of contracts, which could occur beyond one year. | ||||||||
The following table presents the components of unbilled contract revenues, as presented above, net of billings in excess of costs and estimated earnings, a component of other current liabilities: | ||||||||
(in thousands) | 29-Mar-14 | 31-Dec-13 | ||||||
Costs of in-process contracts | $ | 76,114 | $ | 80,407 | ||||
Estimated earnings, net of estimated losses | 25,669 | 22,158 | ||||||
Less: progress billings | (78,946 | ) | (81,799 | ) | ||||
$ | 22,837 | $ | 20,766 | |||||
Unbilled contract revenues | $ | 25,782 | $ | 26,915 | ||||
Billings in excess of costs and estimated earnings | (2,945 | ) | (6,149 | ) | ||||
$ | 22,837 | $ | 20,766 | |||||
Concentration_Risks
Concentration Risks | 3 Months Ended |
Mar. 29, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risks | ' |
Concentration Risks | |
A majority of the Company’s revenues and accounts receivable, net of allowances, are concentrated with a few large customers. The largest three customers accounted, respectively, for 49%, 12% and 12% of revenues for the three months ended March 29, 2014 and for 26%, 18% and 11% of accounts receivable, net of allowances, at March 29, 2014. The largest and third-largest customers by revenues were included in the Fulfillment segment, and the second-largest customer by revenues was included in the Engineering and Construction segment. |
Restricted_Cash
Restricted Cash | 3 Months Ended |
Mar. 29, 2014 | |
Restricted cash [Abstract] | ' |
Restricted Cash | ' |
Restricted Cash | |
At March 29, 2014, the Company had $12.8 million of restricted cash, representing cash on account with its former lender as collateral for $9.5 million of standby letters of credit and fees issued thereon under the prior revolving credit facility in support of the Company’s insurance obligations. On March 31, 2014 an additional $3 million of restricted cash was released to the Company and utilized to repay a portion of the Company’s revolving credit facility upon transfer of the underlying letter of credit to the Company’s revolving credit facility. The cash balance becomes available to the Company upon cancellation or transfer of the standby letters of credit to the current revolving credit facility by the holders. | |
It is anticipated that the balance of restricted cash will be released to the Company within the next twelve months and applied to the outstanding balance of the Company’s revolving credit facility. Accordingly, restricted cash has been classified as a current asset at March 29, 2014. |
Goodwill_and_Amortizable_Intan
Goodwill and Amortizable Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Amortizable Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Amortizable Intangible Assets | |||||||||||||||||||||||||
The following table presents the components of goodwill by segment: | |||||||||||||||||||||||||
29-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
(in thousands) | Gross Amount | Accumulated Impairment Losses | Net Amount | Gross Amount | Accumulated Impairment Losses | Net Amount | |||||||||||||||||||
Fulfillment | $ | 111,247 | $ | (22,800 | ) | $ | 88,447 | $ | 111,279 | $ | (12,700 | ) | $ | 98,579 | |||||||||||
Engineering and Construction | 25,484 | (25,484 | ) | — | 25,484 | (25,484 | ) | — | |||||||||||||||||
Total | $ | 136,731 | $ | (48,284 | ) | $ | 88,447 | $ | 136,763 | $ | (38,184 | ) | $ | 98,579 | |||||||||||
Additional information about the impairment charge of $10.1 million for the three months ended March 29, 2014 may be found in Note 7. Fulfillment segment goodwill includes $0.9 million denominated in Canadian dollars, resulting in foreign currency translation changes from period to period. | |||||||||||||||||||||||||
The following table presents the components of amortizable intangible assets: | |||||||||||||||||||||||||
29-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
(in thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Customer relationships | $ | 96,449 | $ | 65,567 | $ | 30,882 | $ | 96,449 | $ | 64,186 | $ | 32,263 | |||||||||||||
Other | 4,518 | 3,046 | 1,472 | 4,518 | 2,818 | 1,700 | |||||||||||||||||||
Total | $ | 100,967 | $ | 68,613 | $ | 32,354 | $ | 100,967 | $ | 67,004 | $ | 33,963 | |||||||||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
The following table presents the components of debt: | ||||||||
(in thousands) | 29-Mar-14 | 31-Dec-13 | ||||||
Revolving credit facility, net of discount of $2,690 and $3,013 | $ | 44,111 | $ | 45,040 | ||||
Term loan facility, net of discounts of $11,261 and $11,951 | 131,978 | 130,354 | ||||||
Redeemable obligation | 6,298 | 6,152 | ||||||
Long-term debt | 182,387 | 181,546 | ||||||
Current portion of debt | 25,148 | 7,502 | ||||||
Debt, net of current portion | $ | 157,239 | $ | 174,044 | ||||
Revolving Credit Facility | ||||||||
The Company’s revolving loan is a $75.0 million facility with up to $35.0 million available for issuance of standby letters of credit (the “Revolving Loan”) which matures on April 15, 2016. At March 29, 2014 there was $4.8 million of availability under the Revolving Loan. Availability was calculated based upon (i) total potential availability under the Revolving Loan of $63.7 million, which was determined as the lesser of (a) the $75.0 million face amount of the facility and (b) a borrowing base of $63.7 million, calculated based upon eligible receivables of $46.4 million plus an additional amount of $17.3 million (the “Additional Amount”); less (ii) outstanding standby letters of credit under the Revolving Loan of $12.1 million; less (iii) outstanding borrowings under the Revolving Loan of $46.8 million. The Additional Amount varies from $0.0 to $20.0 million based upon the total of eligible and ineligible receivables; the minimum amount is used at $60.0 million or less of total receivables, the maximum amount is used at $80.0 million or greater of total receivables, and a proportional amount is used if total receivables are between $60.0 million and $80.0 million. | ||||||||
At March 29, 2014, $17.5 million of the Company’s Revolving Loan balance was classified as current debt which amount represents the Company’s estimate of the Revolving Loan balance that will be repaid within the next twelve months. | ||||||||
Term Loan Facility | ||||||||
The Company’s term loan facility is a credit agreement with several banks and other financial institutions (the “Term Loan”). The face amount of the Term Loan, which matures on April 15, 2018, is $135.0 million. | ||||||||
Redeemable Obligation | ||||||||
In September 2012, the Company purchased substantially all of the assets of Skylink LTD (“Skylink”). In accordance with the purchase agreement, a redeemable obligation of $6.0 million was accrued as of May 31, 2013 because the Company had not yet paid the second earn-out. The Company has not made this payment because certain contractual conditions have not yet been met, including compliance with debt covenants (which occurred on July 25, 2013) and minimum levels of liquidity after giving effect to such payments (which has not yet been satisfied). | ||||||||
The obligation accrues interest at an amount equal to 10.0% per annum commencing on May 31, 2013. The obligation also contains an equity redemption feature permitting the sellers to convert unpaid amounts into a maximum of 3,715,915 shares of the Company’s common stock, which amount is equal to 19.9% of the number of shares outstanding as of September 14, 2012, the date of the purchase agreement for the acquisition of Skylink. The conversion price would be calculated based on the 20 days trailing volume-weighted average of the closing prices of the common stock as of the date of the conversion. Any unpaid amounts not so converted would remain payable in cash up to the amount of the obligation. At March 29, 2014, this instrument was redeemable for 3.5 million shares of common stock based on a conversion price of $1.78 per share. | ||||||||
Security Provisions and Covenants | ||||||||
The Revolving Loan and the Term Loan require the Company to make customary representations and warranties and contain provisions for repayment, guarantees and other security. The Revolving Loan provides the lenders a first lien security interest in the Company’s accounts receivable and inventory, and the Term Loan provides a second lien interest in the accounts receivable and inventory and a first lien interest in all other assets of the Company. The Revolving Loan and the Term Loan also provide for customary events of default (which are in some cases subject to certain exceptions, thresholds and grace periods) including, but not limited to, nonpayment of principal and interest, failure to perform or observe covenants, breaches of representations and warranties and certain bankruptcy-related events. | ||||||||
The Revolving Loan and the Term Loan require the Company to comply with customary affirmative and negative covenants, and the Term Loan further requires the Company to maintain the following financial condition covenants: | ||||||||
• | a Consolidated Leverage Ratio, no greater than specified amounts, representing the Company’s long-term debt divided by adjusted earnings, as defined (“Adjusted Earnings”); and | |||||||
• | a Fixed Charge Coverage Ratio, no less than specified amounts, representing the Company’s Adjusted Earnings divided by fixed charges. | |||||||
The following table presents the specified amounts of the Consolidated Leverage Ratio and the Fixed Charge Coverage Ratio: | ||||||||
Consolidated Leverage Ratio | Fixed Charge Coverage Ratio | |||||||
Twelve months ending: | ||||||||
31-Mar-14 | 4.87 | :1.00 | 1.25 | :1.00 | ||||
30-Jun-14 | 4.26 | :1.00 | 1.31 | :1.00 | ||||
30-Sep-14 | 4.11 | :1.00 | 1.32 | :1.00 | ||||
31-Dec-14 | 3.94 | :1.00 | 1.38 | :1.00 | ||||
31-Dec-15 | 3.11 | :1.00 | 1.76 | :1.00 | ||||
31-Dec-16 | 2.38 | :1.00 | 2.22 | :1.00 | ||||
December 31, 2017 and thereafter | 1.65 | :1.00 | 2.82 | :1.00 | ||||
In the event of noncompliance with these financial condition covenants or other defined events of default, the lenders are entitled to certain remedies, including accelerated repayment of amounts outstanding. | ||||||||
The Revolving Loan contains a subjective acceleration clause that can be triggered if the lenders determine that the Company has experienced a material adverse change. If triggered by the lenders, this clause would create events of default with respect to both the Revolving Loan and the Term Loan, which in turn would permit the lenders to accelerate repayment of those obligations. The Revolving Loan agreement requires the Company to maintain a “Springing Lock-box” under which remittances from customers go directly to a lock-box subject to a security interest in the favor of the creditor. If the subjective acceleration clause is exercised, the creditor may cause the cash in the lock-box at that moment, as well as all subsequent cash remittances by customers into that lock-box, to be redirected from the lock-box to the creditors account and applied against the debt outstanding. | ||||||||
At March 29, 2014, the Company was in compliance with the Consolidated Leverage Ratio and the Fixed Charge Coverage Ratio and all other covenants. Because these ratios become more restrictive over time, the Company will need to either increase its Adjusted Earnings, decrease its long-term debt (including a reduction of cash collateralized standby letters of credit) or decrease its fixed charges such as cash paid for debt service, capital expenditures and income taxes, to remain in compliance. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 29, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair value measurement | ' |
Fair value measurement | |
Fair Value Measurements with Significant Unobservable Inputs | |
As of March 29, 2014 the Company determined that based on results through the first quarter and the outlook for the business, the revenue growth assumptions and related profitability assumptions used previously in determining the Broadband Cable reporting unit’s fair value would not be achieved. As a result, management determined that indicators of impairment existed and performed interim impairment testing of goodwill and long-lived assets, based on revised forecasts, for its Broadband Cable reporting unit. | |
The Company determined the carrying value of the Broadband Cable reporting unit exceeded its fair value. The Company determined fair value using a combination of the market-based approach and the income approach relying on a discounted cash flow analysis. Determining fair value requires the exercise of significant judgment, including judgment about appropriate discount rates, perpetual growth rates, the amount and timing of expected future cash flows, as well as relevant comparable company earnings multiples for the market-based approach (Level 3 measurements). The cash flows employed in the discounted cash flow analysis are based on the Company’s revised internal business model for the Broadband Cable reporting unit for 2014 and, for the four subsequent years beyond 2014, developed as a result of the reporting unit’s actual performance through March 29, 2014 and an assessment of (i) current and longer term operations and (ii) market conditions. The growth rates and future operating results used are an estimate of the future growth in the industry in which the reporting unit participates. The forecast represented the best information available to the Company at the time. The discount rate used of 19.2% in the discounted cash flow analysis is intended to reflect the risks inherent in the future cash flows of the reporting unit and are based on an estimated market participant’s cost of capital. In addition, the market-based approach utilizes comparable company public trading values, research analyst estimates and, where available, values observed in private market transactions. | |
For the second step of the impairment test, the Company allocated the fair value of the reporting unit to its respective assets and liabilities based on their relative fair value at the date of the impairment test. The Company then compared the implied fair value of the Broadband Cable reporting unit’s goodwill of $3.1 million to its carrying amount. Since the carrying amount of the goodwill exceeded its implied fair value, the Company recognized a preliminary non-cash impairment charge of $10.1 million for the quarter ended March 29, 2014. The amount of the goodwill impairment loss is an estimate as the Company is still verifying certain of the fair market value assumptions used to determine the implied fair value of the Broadband Cable reporting unit’s goodwill. | |
Should actual future results differ from those projections used in the impairment testing, or should our assumptions prove to be incorrect, the fair value of a reporting unit could decline further, which could result in additional impairment. Following the goodwill impairment charge, the Fulfillment segments’ goodwill was $88.4 million, at March 29, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In addition to the matters discussed below, the Company is subject to a variety of legal cases, claims and other disputes that arise in the ordinary course of business. The Company cannot provide assurance that it will be successful in recovering all or any of the potential damages it has claimed or in defending claims against it. | |
The following sections summarize what management believes to be the most significant commitments and contingencies. | |
Class Action Lawsuit | |
As previously disclosed, a consolidated class action lawsuit was filed against the Company and certain of its current and former officers in the United States District Court for the Eastern District of Pennsylvania. The case, entitled In Re UniTek Global Services, Inc. Securities Litigation, Civil Action NO. 13-2119, alleges that the Company made misstatements and omissions regarding its business, its financial condition and its internal controls and systems in violation of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In October 2013, the plaintiffs and the Company reached a preliminary agreement to settle all claims for an amount of $1.6 million, including attorneys’ fees and expenses. In February 2014, the Court entered an Order granting preliminary approval of the settlement agreement, and the hearing to approve the final settlement is set for June 2014. The Company believes that the settlement amount will be covered by insurance and has accrued the $0.3 million deductible. | |
Collective Action under Fair Labor Standards Act | |
The Company had a collective action under the Fair Labor Standards Act filed against it in the United States District Court for the Western District of Tennessee in February 2008. In October 2012, a judgment was entered for the plaintiffs. The Company intends to appeal the judgment promptly as soon as it becomes final and appealable. The Company believes that the potential loss exposure for this action is between $0.0 and $3.8 million and that it has accrued adequate reserves for any resulting loss deemed probable. | |
Skylink Complaint | |
In August 2013, Skylink brought a complaint against the Company in the Common Pleas Court of Hancock County, Ohio alleging the Company had failed to pay an earn-out payment and requesting a declaratory judgment that the earn-out payment is due and immediately payable, together with the accrued interest thereon and costs and expenses. The Company removed the complaint to the United States District Court for the Northern District of Ohio and filed a motion to dismiss. Skylink thereafter amended its complaint, and the Company has filed another motion to dismiss the amended complaint. While the Company acknowledges that the earn-out payment of $6.0 million accrued on May 31, 2013, the Company has not made this payment because certain contractual conditions have not yet been met. | |
Indemnification Obligations | |
Subject to certain limitations, the Company is obligated to indemnify its current and former officers in connection with any regulatory or litigation matter. This obligation arises under the terms of the Company’s Amended and Restated Articles of Incorporation, the Company’s Amended and Restated Bylaws and Delaware law. An obligation to indemnify generally means that the Company is required to pay or reimburse the individual’s reasonable legal expenses and possibly damages and other liabilities that may be incurred. | |
Other | |
The Company is involved in certain other legal and regulatory actions, such as employment-related matters, tax issues, wage and hour claims, and union grievance matters, which arose in the ordinary course of business. The Company is unable to predict the outcome of these matters, but does not believe that the ultimate resolution of such matters will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. However, if certain of such matters were determined adversely to the Company, although the ultimate liability arising therefrom would not be material to the financial position of the Company, it could be material to its results of operations in an individual quarterly or annual period. | |
The Company is required by certain customers and licensing agencies to enter into surety bonds, which provide a guarantee to the customer or agency that the Company will perform under the terms of its contracts, including payment of subcontractors and other vendors. In the event of payments by the bonding company due to non-performance, the Company would become liable to the bonding company up to the full amount of the bond. At March 29, 2014 the Company had $54.6 million of surety bonds outstanding. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company sponsored two stock-based compensation plans for which awards were either outstanding or available for future grant at March 29, 2014: (i) the 2009 Omnibus Securities Plan (the “2009 Plan”); and (ii) the 2013 Omnibus Equity Compensation Plan (the “2013 Plan”) (collectively, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors or by one or more committees of the Board of Directors as designated. The administrator of the Plans and its authorized delegates have the authority to select the persons to whom awards may be granted, the number, type and value of awards and the terms and conditions of awards. Participation in the Plans is limited to employees, directors and consultants. Unless terminated earlier by the Board of Directors, the 2009 Plan will expire on September 24, 2019, and the 2013 Plan will expire on December 5, 2023. | ||||||||||||||
The Plans provide for the grant of various types of stock-based awards, of which the Company has primarily issued restricted stock units (“RSUs”). The Company has also granted restricted shares and RSUs to certain of its executives as inducement grants, which are not included under any of the Plans (“Non-Plan Inducement Grants”). | ||||||||||||||
Stock-based compensation expense, a component of selling general and administrative expense, for the three months ended March 29, 2014 and March 30, 2013 was $0.5 million and $0.8 million, respectively. | ||||||||||||||
Stock-Based Award Activity | ||||||||||||||
The following table presents changes in outstanding stock options and nonvested RSUs and Non-Plan Inducement Grants: | ||||||||||||||
RSUs | Non-Plan Inducement Grants | |||||||||||||
(in thousands, except per share amounts) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||
Balance at December 31, 2013 | 230 | $ | 3.58 | 128 | $ | 2.36 | ||||||||
Granted | 991 | 1.65 | 8 | 1.72 | ||||||||||
Vested | (31 | ) | 3.8 | (48 | ) | 2.6 | ||||||||
Forfeited | (57 | ) | 1.26 | (8 | ) | 1.15 | ||||||||
Balance at March 29, 2014 | 1,133 | $ | 2 | 80 | $ | 2.27 | ||||||||
Not included above are 385,000 RSUs the Board of Directors has authorized under the Company’s long-term incentive program that are subject to granting upon the determination of future performance criteria in 2015 and 2016. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company’s effective tax rate differs from the Federal statutory rate of 35% primarily because it has not yet achieved profitable operations outside of Canada. As a result, the Company’s non-Canadian deferred tax assets do not satisfy the criteria for realizability, and it has established a full valuation allowance for such assets. In addition, the Company is required to pay income taxes in certain states and localities in which it does business. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
Discontinued Operations | ||||||||
The following table presents the results of discontinued operations substantially as a result of the Company’s sale in 2012 of its wireless telecommunication business: | ||||||||
Three Months Ended | ||||||||
(in thousands) | March 29, | 30-Mar-13 | ||||||
2014 | ||||||||
Revenues | $ | — | $ | 1,667 | ||||
Loss from discontinued operations before income taxes | — | (611 | ) | |||||
Income tax expense from discontinued operations | — | 10 | ||||||
Loss from discontinued operations | $ | — | $ | (621 | ) | |||
Restructuring_Restatement_and_
Restructuring, Restatement and Investigation Related Costs | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Restatement, Investigation and Related Costs [Abstract] | ' | |||||||||
Restructuring, Restatement and Investigation Related Costs | ' | |||||||||
Restructuring, Restatement and Investigation Related Costs | ||||||||||
In 2013, the Company conducted an investigation of certain of its accounting practices resulting in the restatement of certain 2011 and 2012 financial statements. The Company incurred substantial additional costs for audit fees and other professional services, including the cost of litigation and consultants, as well as costs to indemnify current and former officers for legal costs (see Note 8). | ||||||||||
The following table presents the components of restatement and investigation costs: | ||||||||||
Three Months Ended | ||||||||||
(in thousands) | March 29, | 30-Mar-13 | ||||||||
2014 | ||||||||||
Incremental audit fees | $ | — | $ | 495 | ||||||
Other professional services | 542 | 903 | ||||||||
Restatement, investigation and related costs | $ | 542 | $ | 1,398 | ||||||
Additional costs for related legal matters are likely to arise in the future, such as the Company’s obligation to indemnify current and former officers in connection with potential regulatory or legal proceedings. Management is not able to estimate what the costs related to these matters might be, but such costs could be significant. | ||||||||||
During 2013 and 2014, the Company made changes to its structure in order to align its organization and executive management for continued growth in wireless and fulfillment services. Additional costs for these initiatives are expected to be incurred in future periods. | ||||||||||
The following table presents changes in accrued restructuring costs: | ||||||||||
(in thousands) | One-Time Termination Benefits | Other | Total | |||||||
Balance at December 31, 2013 | $ | 783 | $ | — | $ | 783 | ||||
Restructuring charges | 138 | 191 | 329 | |||||||
Amounts paid | (453 | ) | (46 | ) | (499 | ) | ||||
Balance at March 29, 2014 | $ | 468 | $ | 145 | $ | 613 | ||||
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||
The Company reports its results in two segments based on the services that it provides and the industries that it serves. The Company’s Fulfillment segment provides comprehensive installation and fulfillment services to customers in the satellite television and broadband cable industries. This segment represents the aggregation of the Company’s satellite and broadband cable operating segments. Revenues in this segment are primarily recurring in nature and based on predetermined rates for each type of service performed. The Company’s Engineering and Construction segment provides wireless telecommunication construction, project management and systems integration services to customers in the wireless telecommunications and public safety industries. Revenues in this segment are primarily contract-based and are recognized primarily using the percentage-of-completion method using estimated costs incurred to date or milestones achieved to measure progress towards completion. | ||||||||||||||||||||||||
The following table presents selected segment financial information: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
29-Mar-14 | 30-Mar-13 | |||||||||||||||||||||||
(in thousands) | Fulfillment | Engineering & Construction | Total | Fulfillment | Engineering & Construction | Total | ||||||||||||||||||
Revenues | $ | 63,236 | $ | 25,364 | $ | 88,600 | $ | 74,430 | $ | 39,408 | $ | 113,838 | ||||||||||||
Cost of revenues | 51,904 | 23,425 | 75,329 | 61,135 | 34,116 | 95,251 | ||||||||||||||||||
Gross profit | 11,332 | 1,939 | 13,271 | 13,295 | 5,292 | 18,587 | ||||||||||||||||||
Selling, general and administrative expenses | 6,162 | 4,057 | 10,219 | 8,020 | 5,118 | 13,138 | ||||||||||||||||||
(Income) related to contingent consideration | — | — | — | (114 | ) | — | (114 | ) | ||||||||||||||||
Restructuring, restatement and investigation related costs | 645 | 226 | 871 | 1,210 | 667 | 1,877 | ||||||||||||||||||
Impairment charges | 10,100 | — | 10,100 | — | — | — | ||||||||||||||||||
Depreciation and amortization | 2,345 | 1,677 | 4,022 | 4,281 | 1,766 | 6,047 | ||||||||||||||||||
Operating loss | $ | (7,920 | ) | $ | (4,021 | ) | $ | (11,941 | ) | $ | (102 | ) | $ | (2,259 | ) | $ | (2,361 | ) | ||||||
Acquisition of property and equipment | $ | 173 | $ | 278 | $ | 451 | $ | 83 | $ | 434 | $ | 517 | ||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
We experienced losses of $19.6 million and $52.1 million in the three months ended March 29, 2014 and for the year ended December 31, 2013, respectively. While a portion of these losses were non-cash charges or resulted from unusual events, if the Company is unable to improve profitability, reduce long-term debt or obtain additional financing, the resultant lack of liquidity or the potential inability to comply with long-term debt covenants could have a material adverse effect on the Company’s operations. At March 29, 2014, in addition to cash on hand, the Company had availability under its revolving loan facility of $4.8 million, and it had the ability to borrow up to an incremental $11.3 million if underlying eligible receivables increase. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, the reported amounts of revenues and expenses, and certain of the amounts contained in the notes to the unaudited condensed consolidated financial statements. Although such assumptions are based on management’s best knowledge of current events and actions the Company may undertake in the future, actual results could differ significantly from those estimates and assumptions. The Company’s more significant estimates relate to revenue recognition, impairment testing of goodwill and other long-lived assets, fair value measurements, the allowance for doubtful accounts, accrued insurance, income taxes and contingencies. | |
In the ordinary course of accounting for the items discussed above, the Company makes changes in estimates as appropriate and as the Company becomes aware of circumstances surrounding those changes. Such changes in estimates are reflected in reported results of operations in the period in which the changes are made, and if material, their effects are disclosed in the notes to the unaudited condensed consolidated financial statements. | |
Net Income or Loss per Share | ' |
Net Loss per Share | |
Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods presented. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods adjusted for the dilutive effect, if any, of the exercise or conversion of instruments into common stock, such as non-vested restricted stock units, non-vested restricted shares, warrants or redeemable obligations. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which clarifies when a disposal of a component of an entity or a group of components of an entity is to be reported in discontinued operations. We do not expect the adoption of this accounting guidance to have a material effect on our consolidated financial statements. ASU 2014-08 is effective prospectively for fiscal years, and interim period within those years, beginning after December 15, 2014. |
Accounts_Receivable_Net_of_All1
Accounts Receivable, Net of Allowances (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of components of accounts receivable, net of allowances | ' | |||||||
The following table presents the components of accounts receivable, net of allowances: | ||||||||
(in thousands) | 29-Mar-14 | 31-Dec-13 | ||||||
Trade accounts receivable | $ | 20,143 | $ | 16,308 | ||||
Contract billings | 27,707 | 30,928 | ||||||
Unbilled contract revenues | 25,782 | 26,915 | ||||||
Other unbilled revenues | 2,406 | 1,376 | ||||||
Retainage | 2,507 | 2,698 | ||||||
Accounts receivable, gross | 78,545 | 78,225 | ||||||
Allowance for doubtful accounts | (5,565 | ) | (4,867 | ) | ||||
Accounts receivable, net of allowances | $ | 72,980 | $ | 73,358 | ||||
Schedule of components of unbilled contract revenues, net of billings in excess of costs and estimated earnings | ' | |||||||
The following table presents the components of unbilled contract revenues, as presented above, net of billings in excess of costs and estimated earnings, a component of other current liabilities: | ||||||||
(in thousands) | 29-Mar-14 | 31-Dec-13 | ||||||
Costs of in-process contracts | $ | 76,114 | $ | 80,407 | ||||
Estimated earnings, net of estimated losses | 25,669 | 22,158 | ||||||
Less: progress billings | (78,946 | ) | (81,799 | ) | ||||
$ | 22,837 | $ | 20,766 | |||||
Unbilled contract revenues | $ | 25,782 | $ | 26,915 | ||||
Billings in excess of costs and estimated earnings | (2,945 | ) | (6,149 | ) | ||||
$ | 22,837 | $ | 20,766 | |||||
Goodwill_and_Amortizable_Intan1
Goodwill and Amortizable Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of changes in goodwill by segment | ' | ||||||||||||||||||||||||
The following table presents the components of goodwill by segment: | |||||||||||||||||||||||||
29-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
(in thousands) | Gross Amount | Accumulated Impairment Losses | Net Amount | Gross Amount | Accumulated Impairment Losses | Net Amount | |||||||||||||||||||
Fulfillment | $ | 111,247 | $ | (22,800 | ) | $ | 88,447 | $ | 111,279 | $ | (12,700 | ) | $ | 98,579 | |||||||||||
Engineering and Construction | 25,484 | (25,484 | ) | — | 25,484 | (25,484 | ) | — | |||||||||||||||||
Total | $ | 136,731 | $ | (48,284 | ) | $ | 88,447 | $ | 136,763 | $ | (38,184 | ) | $ | 98,579 | |||||||||||
Schedule of components of amortizable intangible assets | ' | ||||||||||||||||||||||||
The following table presents the components of amortizable intangible assets: | |||||||||||||||||||||||||
29-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||
(in thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Customer relationships | $ | 96,449 | $ | 65,567 | $ | 30,882 | $ | 96,449 | $ | 64,186 | $ | 32,263 | |||||||||||||
Other | 4,518 | 3,046 | 1,472 | 4,518 | 2,818 | 1,700 | |||||||||||||||||||
Total | $ | 100,967 | $ | 68,613 | $ | 32,354 | $ | 100,967 | $ | 67,004 | $ | 33,963 | |||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Components [Member] | ' | |||||||
Debt Instrument [Line Items] | ' | |||||||
Schedule of long-term debt | ' | |||||||
The following table presents the components of debt: | ||||||||
(in thousands) | 29-Mar-14 | 31-Dec-13 | ||||||
Revolving credit facility, net of discount of $2,690 and $3,013 | $ | 44,111 | $ | 45,040 | ||||
Term loan facility, net of discounts of $11,261 and $11,951 | 131,978 | 130,354 | ||||||
Redeemable obligation | 6,298 | 6,152 | ||||||
Long-term debt | 182,387 | 181,546 | ||||||
Current portion of debt | 25,148 | 7,502 | ||||||
Debt, net of current portion | $ | 157,239 | $ | 174,044 | ||||
Debt Covenant [Member] | ' | |||||||
Debt Instrument [Line Items] | ' | |||||||
Schedule of long-term debt | ' | |||||||
The following table presents the specified amounts of the Consolidated Leverage Ratio and the Fixed Charge Coverage Ratio: | ||||||||
Consolidated Leverage Ratio | Fixed Charge Coverage Ratio | |||||||
Twelve months ending: | ||||||||
31-Mar-14 | 4.87 | :1.00 | 1.25 | :1.00 | ||||
30-Jun-14 | 4.26 | :1.00 | 1.31 | :1.00 | ||||
30-Sep-14 | 4.11 | :1.00 | 1.32 | :1.00 | ||||
31-Dec-14 | 3.94 | :1.00 | 1.38 | :1.00 | ||||
31-Dec-15 | 3.11 | :1.00 | 1.76 | :1.00 | ||||
31-Dec-16 | 2.38 | :1.00 | 2.22 | :1.00 | ||||
December 31, 2017 and thereafter | 1.65 | :1.00 | 2.82 | :1.00 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of changes in outstanding stock options and nonvested RSUs and non-plan inducement grants | ' | |||||||||||||
The following table presents changes in outstanding stock options and nonvested RSUs and Non-Plan Inducement Grants: | ||||||||||||||
RSUs | Non-Plan Inducement Grants | |||||||||||||
(in thousands, except per share amounts) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||
Balance at December 31, 2013 | 230 | $ | 3.58 | 128 | $ | 2.36 | ||||||||
Granted | 991 | 1.65 | 8 | 1.72 | ||||||||||
Vested | (31 | ) | 3.8 | (48 | ) | 2.6 | ||||||||
Forfeited | (57 | ) | 1.26 | (8 | ) | 1.15 | ||||||||
Balance at March 29, 2014 | 1,133 | $ | 2 | 80 | $ | 2.27 | ||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Schedule of the results of discontinued operations | ' | |||||||
The following table presents the results of discontinued operations substantially as a result of the Company’s sale in 2012 of its wireless telecommunication business: | ||||||||
Three Months Ended | ||||||||
(in thousands) | March 29, | 30-Mar-13 | ||||||
2014 | ||||||||
Revenues | $ | — | $ | 1,667 | ||||
Loss from discontinued operations before income taxes | — | (611 | ) | |||||
Income tax expense from discontinued operations | — | 10 | ||||||
Loss from discontinued operations | $ | — | $ | (621 | ) | |||
Restructuring_Restatement_and_1
Restructuring, Restatement and Investigation Related Costs (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
Restatement, Investigation and Related Costs [Abstract] | ' | |||||||||
Components of restatement and investigation costs | ' | |||||||||
The following table presents the components of restatement and investigation costs: | ||||||||||
Three Months Ended | ||||||||||
(in thousands) | March 29, | 30-Mar-13 | ||||||||
2014 | ||||||||||
Incremental audit fees | $ | — | $ | 495 | ||||||
Other professional services | 542 | 903 | ||||||||
Restatement, investigation and related costs | $ | 542 | $ | 1,398 | ||||||
Changes in accrued restructuring costs | ' | |||||||||
The following table presents changes in accrued restructuring costs: | ||||||||||
(in thousands) | One-Time Termination Benefits | Other | Total | |||||||
Balance at December 31, 2013 | $ | 783 | $ | — | $ | 783 | ||||
Restructuring charges | 138 | 191 | 329 | |||||||
Amounts paid | (453 | ) | (46 | ) | (499 | ) | ||||
Balance at March 29, 2014 | $ | 468 | $ | 145 | $ | 613 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of selected segment financial information | ' | |||||||||||||||||||||||
The following table presents selected segment financial information: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
29-Mar-14 | 30-Mar-13 | |||||||||||||||||||||||
(in thousands) | Fulfillment | Engineering & Construction | Total | Fulfillment | Engineering & Construction | Total | ||||||||||||||||||
Revenues | $ | 63,236 | $ | 25,364 | $ | 88,600 | $ | 74,430 | $ | 39,408 | $ | 113,838 | ||||||||||||
Cost of revenues | 51,904 | 23,425 | 75,329 | 61,135 | 34,116 | 95,251 | ||||||||||||||||||
Gross profit | 11,332 | 1,939 | 13,271 | 13,295 | 5,292 | 18,587 | ||||||||||||||||||
Selling, general and administrative expenses | 6,162 | 4,057 | 10,219 | 8,020 | 5,118 | 13,138 | ||||||||||||||||||
(Income) related to contingent consideration | — | — | — | (114 | ) | — | (114 | ) | ||||||||||||||||
Restructuring, restatement and investigation related costs | 645 | 226 | 871 | 1,210 | 667 | 1,877 | ||||||||||||||||||
Impairment charges | 10,100 | — | 10,100 | — | — | — | ||||||||||||||||||
Depreciation and amortization | 2,345 | 1,677 | 4,022 | 4,281 | 1,766 | 6,047 | ||||||||||||||||||
Operating loss | $ | (7,920 | ) | $ | (4,021 | ) | $ | (11,941 | ) | $ | (102 | ) | $ | (2,259 | ) | $ | (2,361 | ) | ||||||
Acquisition of property and equipment | $ | 173 | $ | 278 | $ | 451 | $ | 83 | $ | 434 | $ | 517 | ||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Share data in Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Net loss | ($19,625,000) | ($7,664,000) | ($52,100,000) |
Additional amount available under revolving loan facility if underlying receivables increase | 11,300,000 | ' | ' |
Difference in Amount Between Basic and Diluted Net Income (Loss) Per Share | 0 | 0 | ' |
Convertible Debt [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares excluded from computation of income or loss per share | 3.7 | ' | ' |
Warrant [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares excluded from computation of income or loss per share | 3.9 | ' | ' |
Stock-based Compensation Instruments [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares excluded from computation of income or loss per share | 1.6 | ' | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Availability under revolving loan facility | $4,800,000 | ' | ' |
Accounts_Receivable_Net_of_All2
Accounts Receivable, Net of Allowances (Details) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of accounts receivable, net of allowances: | ' | ' |
Trade accounts receivable | $20,143 | $16,308 |
Contract billings | 27,707 | 30,928 |
Unbilled contract revenues | 25,782 | 26,915 |
Other unbilled revenues | 2,406 | 1,376 |
Retainage | 2,507 | 2,698 |
Accounts receivable, gross | 78,545 | 78,225 |
Allowance for doubtful accounts | -5,565 | -4,867 |
Accounts receivable, net of allowances | 72,980 | 73,358 |
Components of unbilled contract revenues, net of billings in excess of costs and estimated earnings: | ' | ' |
Costs of in-process contracts | 76,114 | 80,407 |
Estimated earnings, net of estimated losses | 25,669 | 22,158 |
Less: progress billings | -78,946 | -81,799 |
Net costs and estimated earnings in excess of billings | 22,837 | 20,766 |
Unbilled contract revenues | 25,782 | 26,915 |
Billings in excess of costs and estimated earnings | ($2,945) | ($6,149) |
Concentration_Risks_Details
Concentration Risks (Details) (Customer Concentration Risk [Member]) | 3 Months Ended |
Mar. 29, 2014 | |
Customer | |
Concentration of credit risk | ' |
Number of largest customers | 3 |
Revenues [Member] | Customer One [Member] | ' |
Concentration of credit risk | ' |
Concentration risk percentage | 49.00% |
Revenues [Member] | Customer Two [Member] | ' |
Concentration of credit risk | ' |
Concentration risk percentage | 12.00% |
Revenues [Member] | Customer Three [Member] | ' |
Concentration of credit risk | ' |
Concentration risk percentage | 12.00% |
Accounts Receivable [Member] | Customer One [Member] | ' |
Concentration of credit risk | ' |
Concentration risk percentage | 26.00% |
Accounts Receivable [Member] | Customer Two [Member] | ' |
Concentration of credit risk | ' |
Concentration risk percentage | 18.00% |
Accounts Receivable [Member] | Customer Three [Member] | ' |
Concentration of credit risk | ' |
Concentration risk percentage | 11.00% |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2014 |
Restricted cash [Abstract] | ' |
Restricted cash | $12.80 |
Standby letters of credit outstanding | 9.5 |
Release of cash restriction on collateralized letters of credit | $3 |
Goodwill_and_Amortizable_Intan2
Goodwill and Amortizable Intangible Assets - Components of Goodwill by Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 31, 2013 | |
Goodwill [Line Items] | ' | ' | ' |
Gross Amount | $136,731,000 | ' | $136,763,000 |
Accumulated Impairment Losses | -48,284,000 | ' | -38,184,000 |
Net Amount | 88,447,000 | ' | 98,579,000 |
Impairment charge | 10,100,000 | 0 | ' |
Fulfillment Segment [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Gross Amount | 111,247,000 | ' | 111,279,000 |
Accumulated Impairment Losses | -22,800,000 | ' | -12,700,000 |
Net Amount | 88,447,000 | ' | 98,579,000 |
Impairment charge | 10,100,000 | 0 | ' |
Amount of goodwill denominated in Canadian Dollars included in the fulfillment segment | 900,000 | 900,000 | 900,000 |
Engineering and Construction Segment [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Gross Amount | 25,484,000 | ' | 25,484,000 |
Accumulated Impairment Losses | -25,484,000 | ' | -25,484,000 |
Net Amount | 0 | ' | 0 |
Impairment charge | $0 | $0 | ' |
Goodwill_and_Amortizable_Intan3
Goodwill and Amortizable Intangible Assets - Components of Amortizable Intangible Assets (Details) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of amortizable intangible assets, net | ' | ' |
Gross Amount | $100,967 | $100,967 |
Accumulated Amortization | 68,613 | 67,004 |
Net Amount | 32,354 | 33,963 |
Customer Relationships [Member] | ' | ' |
Components of amortizable intangible assets, net | ' | ' |
Gross Amount | 96,449 | 96,449 |
Accumulated Amortization | 65,567 | 64,186 |
Net Amount | 30,882 | 32,263 |
Other [Member] | ' | ' |
Components of amortizable intangible assets, net | ' | ' |
Gross Amount | 4,518 | 4,518 |
Accumulated Amortization | 3,046 | 2,818 |
Net Amount | $1,472 | $1,700 |
Debt_Components_and_Future_Mat
Debt - Components and Future Maturities of Long-Term Debt (Details) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 | 31-May-13 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | $182,387 | $181,546 | ' |
Current portion of debt | 25,148 | 7,502 | ' |
Debt, net of current portion | 157,239 | 174,044 | ' |
Revolving Credit Facility [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 44,111 | 45,040 | ' |
Term Loan Facility [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 131,978 | 130,354 | ' |
Redeemable Obligation [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | $6,298 | $6,152 | $6,000 |
Debt_Revolving_Credit_Facility
Debt - Revolving Credit Facility (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||
Mar. 29, 2014 | Mar. 29, 2014 | Jul. 25, 2013 | Jul. 25, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Accounts Receivable [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||
Total Receivables [Member] | Total Receivables [Member] | ||||||||
Revolving Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum facility amount | ' | $75,000,000 | $75,000,000 | $35,000,000 | ' | ' | ' | ' | ' |
Amounts related to availability description: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum facility amount | ' | 75,000,000 | 75,000,000 | 35,000,000 | ' | ' | ' | ' | ' |
Availability under revolving loan facility | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | 63,700,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowing base amount | ' | 63,700,000 | ' | ' | 46,400,000 | ' | 60,000,000 | ' | 80,000,000 |
Line of credit, additional computed amount | 17,309,000 | ' | ' | ' | ' | 0 | ' | 20,000,000 | ' |
Letters of credit outstanding | 9,500,000 | 12,100,000 | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, determinate range for prorata collateral | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | 80,000,000 |
Outstanding borrowings | ' | 46,800,000 | ' | ' | ' | ' | ' | ' | ' |
Debt, Current | ' | $17,500,000 | ' | ' | ' | ' | ' | ' | ' |
Debt_Term_Loan_Facility_Detail
Debt - Term Loan Facility (Details) (Term Loan Facility [Member], USD $) | Jul. 25, 2013 |
Term Loan Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Face Amount | $135,000,000 |
Debt_Convertible_Obligation_De
Debt - Convertible Obligation (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Dec. 31, 2013 | 31-May-13 | Sep. 14, 2012 |
Convertible obligation | ' | ' | ' | ' |
Long-term debt | $182,387 | $181,546 | ' | ' |
Conversion price | $1.78 | ' | ' | ' |
Redeemable Obligation [Member] | ' | ' | ' | ' |
Convertible obligation | ' | ' | ' | ' |
Long-term debt | $6,298 | $6,152 | $6,000 | ' |
Interest rate, stated | 10.00% | ' | ' | ' |
Equity conversion right, shares issuable | 3,715,915 | ' | ' | ' |
Equity conversion right, percentage of outstanding shares | ' | ' | ' | 19.90% |
Period over which stock price is calculated | '20 days | ' | ' | ' |
Common Stock [Member] | Maximum [Member] | ' | ' | ' | ' |
Convertible obligation | ' | ' | ' | ' |
Equity conversion right, shares issuable | 3,500,000 | ' | ' | ' |
Debt_Security_Provisions_and_C
Debt - Security Provisions and Covenants (Details) (Term Loan Facility [Member]) | 3 Months Ended |
Mar. 29, 2014 | |
Twelve months ended March 31, 2014 | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 4.87 |
Twelve months ended March 31, 2014 | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 1.25 |
Twelve months ended June 30, 2014 | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 4.26 |
Twelve months ended June 30, 2014 | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 1.31 |
Twelve months ended September 30, 2014 | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 4.11 |
Twelve months ended September 30, 2014 | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 1.32 |
Twelve months ended December 31, 2014 | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 3.94 |
Twelve months ended December 31, 2014 | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 1.38 |
Twelve months ended December 31, 2015 | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 3.11 |
Twelve months ended December 31, 2015 | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 1.76 |
Twelve months ended December 31, 2016 | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 2.38 |
Twelve months ended December 31, 2016 | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 2.22 |
Twelve months ended December 31, 2017 and thereafter | Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Consolidated Leverage Ratio | 1.65 |
Twelve months ended December 31, 2017 and thereafter | Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Fixed Charge Coverage Ratio | 2.82 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | 3 Months Ended | ||
Mar. 29, 2014 | Mar. 30, 2013 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Cash flow analysis, number of subsequent years beyond current fiscal year of cash flows used | '4 years | ' | ' |
Cash flow analysis, discount rate | 19.20% | ' | ' |
Impairment charge | $10,100,000 | $0 | ' |
Goodwill | 88,447,000 | ' | 98,579,000 |
Broadband Cable Reporting Unit [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill, implied fair value | 3,100,000 | ' | ' |
Impairment charge | 10,100,000 | ' | ' |
Fulfillment Segment [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Impairment charge | 10,100,000 | 0 | ' |
Goodwill | $88,447,000 | ' | $98,579,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 29, 2014 | Oct. 31, 2013 | Feb. 28, 2014 | Mar. 29, 2014 | 31-May-13 |
In Millions, unless otherwise specified | Surety Bond [Member] | Securities Litigation, Civil Action NO. 13-2119 [Member] | Securities Litigation, Civil Action NO. 13-2119 [Member] | FLSA Collective Action [Member] | Skylink Complaint [Member] |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Preliminary settlement amount | ' | $1.60 | ' | ' | ' |
Loss contingency, estimated amount | 54.6 | ' | 0.3 | ' | 6 |
Potential loss exposure, minimum | ' | ' | ' | 0 | ' |
Potential loss exposure, maximum | ' | ' | ' | $3.80 | ' |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Plans and Awards (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Plan | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Number of sponsored stock-based compensation plans | 2 | ' |
Stock-based compensation | $519 | $767 |
StockBased_Compensation_Stockb
Stock-Based Compensation - Stock-based Award Activity (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 |
Weighted Average Grant Date Fair Value | ' |
Number of shares awarded | 385 |
RSUs [Member] | ' |
Shares | ' |
Beginning Balance (in shares) | 230 |
Granted (in shares) | 991 |
Vested (in shares) | -31 |
Forfeited (in shares) | -57 |
Ending balance (in shares) | 1,133 |
Weighted Average Grant Date Fair Value | ' |
Beginning Balance (in dollars per share) | 3.58 |
Granted (in dollars per share) | 1.65 |
Vested (in dollars per share) | 3.8 |
Forfeited (in dollars per share) | 1.26 |
Ending balance (in dollars per share) | 2 |
Non-Plan Inducement Grants [Member] | ' |
Shares | ' |
Beginning Balance (in shares) | 128 |
Granted (in shares) | 8 |
Vested (in shares) | -48 |
Forfeited (in shares) | -8 |
Ending balance (in shares) | 80 |
Weighted Average Grant Date Fair Value | ' |
Beginning Balance (in dollars per share) | 2.36 |
Granted (in dollars per share) | 1.72 |
Vested (in dollars per share) | 2.6 |
Forfeited (in dollars per share) | 1.15 |
Ending balance (in dollars per share) | 2.27 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Reconciliation of income tax expense or benefit as calculated using the U.S. statutory federal income tax rate of 35% to income tax expense or benefit | ' | ' |
Federal statutory tax rate | 35.00% | 35.00% |
Discontinued_Operations_Detail
Discontinued Operations (Details) (Wireline Business Unit [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Wireline Business Unit [Member] | ' | ' |
Discontinued operations | ' | ' |
Revenues | $0 | $1,667 |
Loss from discontinued operations before income taxes | 0 | -611 |
Income tax expense from discontinued operations | 0 | 10 |
Loss from discontinued operations | $0 | ($621) |
Restructuring_Restatement_and_2
Restructuring, Restatement and Investigation Related Costs - Components of restatement and investigation costs (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Restatement, Investigation and Related Costs [Abstract] | ' | ' |
Incremental audit fees | $0 | $495 |
Other professional services | 542 | 903 |
Restatement, investigation and related costs | $542 | $1,398 |
Restructuring_Restatement_and_3
Restructuring, Restatement and Investigation Related Costs - Changes in accrued restructuring costs (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 |
Restructuring Reserve [Roll Forward] | ' |
Beginning balance | $783 |
Restructuring charges | 329 |
Amounts paid | -499 |
Ending balance | 613 |
One-Time Termination Benefits | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning balance | 783 |
Restructuring charges | 138 |
Amounts paid | -453 |
Ending balance | 468 |
Other | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning balance | 0 |
Restructuring charges | 191 |
Amounts paid | -46 |
Ending balance | $145 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Segment | Segment | |
Selected segment financial information | ' | ' |
Number of reportable segments | 2 | 2 |
Revenues | $88,600 | $113,838 |
Cost of revenues | 75,329 | 95,251 |
Gross profit | 13,271 | 18,587 |
Selling, general and administrative expenses | 10,219 | 13,138 |
Income related to contingent consideration | 0 | -114 |
Restructuring, restatement and investigation related costs | 871 | 1,877 |
Impairment charge | 10,100 | 0 |
Depreciation and amortization | 4,022 | 6,047 |
Operating loss | -11,941 | -2,361 |
Acquisition of property and equipment | 451 | 517 |
Fulfillment Segment [Member] | ' | ' |
Selected segment financial information | ' | ' |
Revenues | 63,236 | 74,430 |
Cost of revenues | 51,904 | 61,135 |
Gross profit | 11,332 | 13,295 |
Selling, general and administrative expenses | 6,162 | 8,020 |
Income related to contingent consideration | 0 | -114 |
Restructuring, restatement and investigation related costs | 645 | 1,210 |
Impairment charge | 10,100 | 0 |
Depreciation and amortization | 2,345 | 4,281 |
Operating loss | -7,920 | -102 |
Acquisition of property and equipment | 173 | 83 |
Engineering and Construction Segment [Member] | ' | ' |
Selected segment financial information | ' | ' |
Revenues | 25,364 | 39,408 |
Cost of revenues | 23,425 | 34,116 |
Gross profit | 1,939 | 5,292 |
Selling, general and administrative expenses | 4,057 | 5,118 |
Income related to contingent consideration | 0 | 0 |
Restructuring, restatement and investigation related costs | 226 | 667 |
Impairment charge | 0 | 0 |
Depreciation and amortization | 1,677 | 1,766 |
Operating loss | -4,021 | -2,259 |
Acquisition of property and equipment | $278 | $434 |