XML 32 R7.htm IDEA: XBRL DOCUMENT
v3.20.2

INTERIM FINANCIAL REPORTING | 9 Months Ended
--- | ---
Sep. 30, 2020
Accounting Policies [Abstract] |
INTERIM FINANCIAL REPORTING | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we have condensed or omitted certain information and footnote disclosures that are included in our annual financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, summary of significant accounting policies, and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. The condensed consolidated December 31, 2019 balance sheet was derived from the audited financial statements included in the Form 10-K. Dollar amounts in the footnotes are stated in thousands, except for per share data. In the opinion of management, these condensed consolidated financial statements reflect all adjustments (which consist of normal, recurring adjustments) necessary for a fair presentation of the financial position and results of operations and cash flows for the periods presented. The results disclosed in the condensed consolidated statements of operations are not necessarily indicative of the results to be expected in any future periods. Although the ultimate impact is uncertain at this time, the coronavirus outbreak may significantly affect the Company's financial condition, liquidity, and results of operations. In this respect, the Company has already experienced the following negative impacts on its business: backlog reduction, lower production volumes, employee absence, bidding restrictions within certain key states, and delays in receipt of materials through the Company's supply chain. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The guidance provides temporary optional expedients and exceptions related to contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The new guidance allows entities to elect not to apply certain modification accounting requirements, if certain criteria are met, to contracts affected by what the guidance calls reference rate reform. An entity that makes this election would consider changes in reference rates and other contract modifications related to reference rate reform to be events that do not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The ASU notes that changes in contract terms that are made to effect the reference rate reform transition are considered related to the replacement of a reference rate if they are not the result of a business decision that is separate from or in addition to changes to the terms of a contract to effect that transition. The guidance is effective upon issuance and generally can be applied as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of the standard on its credit agreement accounted for under Codification topic ASC 470, “Debt”. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes”. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company does not intend to early adopt the standard and does not expect the standard to have a material effect on its consolidated financial condition and results of operations. Revenue Recognition Product Sales - Over Time Under Topic 606, the Company recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services provided. Revenue associated with contracts with customers is recognized over time as the Company's performance creates or enhances customer controlled assets or creates or enhances an asset with no alternative use, which the Company has an enforceable right to receive compensation as defined under the contract for performance completed. To determine the amount of revenue to recognize over time, the Company recognizes revenue over the contract terms based on the output method. The Company applied the "as-invoiced" practical expedient as the amount of consideration the Company has the right to invoice corresponds directly with the value of the Company's performance to date. As the output method is driven by units produced, the Company recognizes revenues based on the value transferred to the customer relative to the remaining value to be transferred. The Company also matches the costs associated with the units produced. If a contract is projected to result in a loss, the entire contract loss is recognized in the period when the loss was first determined and the amount of the loss updated in subsequent reporting periods. Revenue recognition also includes an amount related to a contract asset or contract liability. If the recognized revenue is greater than the amount billed to the customer, a contract related asset is recorded in "Accounts receivable - unbilled". Conversely, if the amount billed to the customer is greater than the recognized revenue, a contract liability is recorded in "Customer deposits". Changes in the job performance, job conditions and final contract settlements are factors that influence management’s assessment of total contract value and therefore, profit and revenue recognition. A portion of the work the Company performs requires financial assurances in the form of performance and payment bonds or letters of credit at the time of execution of the contract. Some contracts include retention provisions of up to 10% which are generally withheld from each progress payment as retainage until the contract work has been completed and approved. Product Sales - Point in Time For certain product sales that do not meet the over time criteria, under Topic 606 the Company recognizes revenue when the product has been shipped to the destination in accordance with the terms outlined in the contract where a present obligation to pay exists as the customer has gained control of the product. Accounts Receivable and Contract Balances The timing of when we bill our customers is generally dependent upon billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided or products are shipped. Projects with performance obligations recognized over time that have costs and estimated earnings recognized to date in excess of cumulative billings, are reported on our Condensed Consolidated Balance Sheets as "Accounts receivable - unbilled". Projects with performance obligations recognized over time that have cumulative billings in excess of costs and estimated earnings recognized to date, are reported on our Condensed Consolidated Balance Sheets as "Customer deposits" (contract liabilities). Any uncollected billed amounts for our performance obligations recognized over time, including contract retentions, are recorded within accounts receivable. At September 30, 2020 and December 31, 2019, accounts receivable included contract retentions of approximately $1,783 and $2,146, respectively. Our billed and unbilled revenue may be exposed to potential credit risk if our customers should encounter financial difficulties, and we maintain reserves for specifically-identified potential uncollectible receivables. At September 30, 2020 and December 31, 2019, our allowances for doubtful accounts were $388 and $333, respectively. Sale to Customer with a Buy-Back Guarantee The Company entered into a buy-back agreement with one specific customer. Under this agreement, the Company guaranteed to buy-back product at a predetermined price at the end of the long-term project, subject to the condition of the product. Although the Company receives payment in full as the product is produced, GAAP requires these transactions to be accounted for as operating leases. The amount of sale proceeds equal to the buy-back obligation, included in "Deferred buy-back lease obligation" in the liabilities section of the consolidated balance sheet, is deferred until the buy-back is exercised or expired. The remaining sale proceeds are deferred in the same account and recognized on a straight-line basis over the usage period, such usage period commencing on delivery to the job-site and ending at the time the buy-back is exercised or expired. The Company capitalizes the cost of the product on the consolidated balance sheet shown in "Deferred buy-back lease asset, net", and depreciates the value, less residual value, to cost of leasing revenue in "Cost of goods sold" over the estimated useful life of the asset. In the case the customer does not exercise the buy-back option and retains ownership of the product at the end of the usage period, the guaranteed buy-back liability and any deferred revenue balances related to the product are settled to revenue, and the net book value of the asset is expensed to cost of leasing revenue. If the customer exercises the buy-back guarantee option, the Company purchases the product back in the amount equal to the buy-back guarantee, the Company settles any remaining deferred balances, in excess of the buy-back payment, to leasing revenue, and the Company reclassifies the net book value of the product on the consolidated balance sheet to "Inventories" or "Property and equipment, net" depending on the intended use at the time. The revenue is being recognized in accordance with Topic 842, Leases. Barrier Rentals - Lease Income Leasing fees are paid by customers at the beginning of the lease period and are recorded as deferred revenue. The deferred revenue is then recognized each month as lease income for the duration of the lease, in accordance with Topic 842, Leases. Topic 842 is applied, as Topic 606-10-15-2 provides a scope exception for lease contracts. Royalty Income The Company licenses certain products to other precast companies to manufacture the Company's products to engineering specifications under the licensing agreements. The agreements are typically for five year terms and require royalty payments from 4% to 6% of total sales of licensed products, which are paid on a monthly basis. The revenues from licensing agreements are recognized in the month earned, in accordance with Topic 606-10-55-65. Shipping and Installation Shipping and installation revenues are recognized as a distinct performance obligation in the period the shipping and installation services are provided to the customer, in accordance with Topic 606. Disaggregation of Revenue In the following table, revenue is disaggregated by primary sources of revenue:
Revenue by Type |  | Three Months Ended September 30 |  |  | Nine Months Ended September 30 |
|  | 2020 |  |  | 2019 |  |  | Change |  |  | % Change |  |  | 2020 |  |  | 2019 |  |  | Change |  |  | % Change |
Soundwall Sales |  | $ | 1,736 |  |  | $ | 1,736 |  |  | $ | — |  |  |  | — | % |  | $ | 5,824 |  |  | $ | 5,790 |  |  | $ | 34 |  |  |  | 1 | %
Architectural Panel Sales |  |  | 696 |  |  |  | 593 |  |  |  | 103 |  |  |  | 17 | % |  |  | 2,229 |  |  |  | 1,018 |  |  |  | 1,211 |  |  |  | 119 | %
SlenderWall Sales |  |  | 26 |  |  |  | 816 |  |  |  | (790 | ) |  |  | (97 | )% |  |  | 949 |  |  |  | 3,551 |  |  |  | (2,602 | ) |  |  | (73 | )%
Miscellaneous Wall Sales |  |  | 963 |  |  |  | 474 |  |  |  | 489 |  |  |  | 103 | % |  |  | 2,994 |  |  |  | 1,243 |  |  |  | 1,751 |  |  |  | 141 | %
Barrier Sales |  |  | 1,679 |  |  |  | 1,921 |  |  |  | (242 | ) |  |  | (13 | )% |  |  | 3,949 |  |  |  | 5,329 |  |  |  | (1,380 | ) |  |  | (26 | )%
Easi-Set and Easi-Span Building Sales |  |  | 643 |  |  |  | 2,468 |  |  |  | (1,825 | ) |  |  | (74 | )% |  |  | 1,971 |  |  |  | 4,837 |  |  |  | (2,866 | ) |  |  | (59 | )%
Utility Sales |  |  | 254 |  |  |  | 471 |  |  |  | (217 | ) |  |  | (46 | )% |  |  | 1,043 |  |  |  | 1,228 |  |  |  | (185 | ) |  |  | (15 | )%
Miscellaneous Sales |  |  | 488 |  |  |  | 110 |  |  |  | 378 |  |  |  | 344 | % |  |  | 1,077 |  |  |  | 424 |  |  |  | 653 |  |  |  | 154 | %
Total Product Sales |  |  | 6,485 |  |  |  | 8,589 |  |  |  | (2,104 | ) |  |  | (24 | )% |  |  | 20,036 |  |  |  | 23,420 |  |  |  | (3,384 | ) |  |  | (14 | )%
Barrier Rentals |  |  | 3,171 |  |  |  | 625 |  |  |  | 2,546 |  |  |  | 407 | % |  |  | 4,820 |  |  |  | 1,787 |  |  |  | 3,033 |  |  |  | 170 | %
Royalty Income |  |  | 484 |  |  |  | 427 |  |  |  | 57 |  |  |  | 13 | % |  |  | 1,165 |  |  |  | 1,162 |  |  |  | 3 |  |  |  | 1 | %
Shipping and Installation Revenue |  |  | 2,375 |  |  |  | 3,568 |  |  |  | (1,193 | ) |  |  | (33 | )% |  |  | 6,768 |  |  |  | 7,880 |  |  |  | (1,112 | ) |  |  | (14 | )%
Total Service Revenue |  |  | 6,030 |  |  |  | 4,620 |  |  |  | 1,410 |  |  |  | 31 | % |  |  | 12,753 |  |  |  | 10,829 |  |  |  | 1,924 |  |  |  | (18 | )%
Total Revenue |  | $ | 12,515 |  |  | $ | 13,209 |  |  | $ | (694 | ) |  |  | (5 | )% |  | $ | 32,789 |  |  | $ | 34,249 |  |  | $ | (1,460 | ) |  |  | (4 | )%
The revenue items: soundwall sales, architectural panel sales, SlenderWall sales, miscellaneous wall sales, barrier rentals, and royalty income are recognized as revenue over time. The revenue items: barrier sales, Easi-Set and Easi-Span building sales, utility sales, miscellaneous sales, and shipping and installation revenue are recognized as revenue at the point in time. Warranties The Company's products are typically sold pursuant to an implicit warranty as to merchantability only. Warranty claims are reviewed and resolved on a case by case method. Although the Company does incur costs for these types of expense, historically the amount of expense is minimal. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and assess performance. The Company currently operates in one operating and reportable business segment for financial reporting purposes. Reclassifications of Certain Items Included within Comparable Prior Year Periods and Previous Current Year Interim Periods Certain minor reclassifications have been made to prior year amounts to conform to current year presentation.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration