Carbo Ceramics (CRRTQ) 10-Q 29 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 23, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	CRR
Entity Registrant Name	CARBO CERAMICS INC
Entity Central Index Key	1,009,672
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		23,285,994

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 90,694	$ 24,298
Trade accounts and other receivables, net	60,053	132,573
Inventories:
Finished goods	85,054	106,941
Raw materials and supplies	29,204	37,502
Total inventories	114,258	144,443
Prepaid expenses and other current assets	5,016	5,241
Prepaid income taxes	975	19,708
Deferred income taxes	38,668	11,348
Total current assets	309,664	337,611
Property, plant and equipment:
Land and land improvements	43,225	40,921
Land-use and mineral rights	19,877	19,877
Buildings	75,961	74,911
Machinery and equipment	631,331	627,517
Construction in progress	142,159	109,378
Total	912,553	872,604
Less accumulated depreciation and amortization	338,792	303,888
Net property, plant and equipment	573,761	568,716
Goodwill	12,164	12,164
Intangible and other assets, net	17,759	15,735
Total assets	913,348	934,226
Current liabilities:
Bank borrowings	88,000	25,000
Accounts payable	10,936	22,922
Accrued payroll and benefits	5,499	12,466
Accrued freight	2,025	5,925
Accrued utilities	2,103	3,714
Dividends payable	2,329
Derivative instruments	6,232
Other accrued expenses	10,961	7,388
Total current liabilities	128,085	77,415
Deferred income taxes	77,723	$ 80,754
Derivative instruments	$ 5,498
Shareholders' equity:
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none outstanding
Common stock, par value $0.01 per share, 80,000,000 shares authorized; 23,290,865 and 23,092,674 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 233	$ 231
Additional paid-in capital	63,728	59,297
Retained earnings	664,775	739,498
Accumulated other comprehensive loss	(26,694)	(22,969)
Total shareholders' equity	702,042	776,057
Total liabilities and shareholders' equity	$ 913,348	$ 934,226

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, share authorized	5,000	5,000
Preferred stock, share outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, share authorized	80,000,000	80,000,000
Common stock, share issued	23,290,865	23,092,674
Common stock, share outstanding	23,290,865	23,092,674

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues	$ 75,807	$ 155,402	$ 222,806	$ 480,527
Cost of sales	80,404	113,252	263,703	340,365
Gross (loss) profit	(4,597)	42,150	(40,897)	140,162
Selling, general and administrative expenses	14,609	18,087	45,902	53,960
Start-up costs				811
Loss (gain) on disposal or impairment of assets	15	5,055	(148)	4,864
Operating (loss) profit	(19,221)	19,008	(86,651)	80,527
Other (expense) income, net	(64)	48	(199)	342
(Loss) income before income taxes	(19,285)	19,056	(86,850)	80,869
Income tax (benefit) expense	(5,387)	5,312	(27,346)	25,680
Net (loss) income	$ (13,898)	$ 13,744	$ (59,504)	$ 55,189
(Loss) earnings per share:
Basic	$ (0.60)	$ 0.60	$ (2.59)	$ 2.39
Diluted	(0.60)	0.60	(2.59)	2.39
Other information:
Dividends declared per common share (See Note 4)	$ 0.20	$ 0.66	$ 0.63	$ 1.26

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net (loss) income	$ (13,898)	$ 13,744	$ (59,504)	$ 55,189
Other comprehensive loss:
Foreign currency translation adjustment	(4,288)	(5,680)	(3,725)	(7,695)
Deferred income taxes		(2,461)		(1,756)
Other comprehensive loss, net of tax	(4,288)	(8,141)	(3,725)	(9,451)
Comprehensive (loss) income	$ (18,186)	$ 5,603	$ (63,229)	$ 45,738

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net (loss) income	$ (59,504)	$ 55,189
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	40,893	37,059
Provision for doubtful accounts	267	395
Deferred income taxes	(30,354)	(1,673)
Excess tax benefits from stock based compensation		(372)
Lower of cost or market and other inventory adjustments	4,372	2,798
(Gain) loss on disposal or impairment of assets	(148)	4,864
Foreign currency transaction (gain) loss, net	(173)	82
Stock compensation expense	6,063	5,887
Loss on derivative instruments	11,730
Changes in operating assets and liabilities:
Trade accounts and other receivables	71,870	11,358
Inventories	20,042	(21,020)
Prepaid expenses and other current assets	239	(1,746)
Long-term other assets	1,329	157
Accounts payable	(6,804)	8,501
Accrued expenses	(8,776)	(1,572)
Accrued income taxes, net	17,083	(3,123)
Net cash provided by operating activities	68,129	96,784
Investing activities
Capital expenditures	(51,333)	(131,232)
Net cash used in investing activities	(51,333)	(131,232)
Financing activities
Proceeds from bank borrowings	70,000
Repayments on bank borrowings	(7,000)
Dividends paid	(12,339)	(21,500)
Purchase of common stock	(551)	(6,892)
Excess tax benefits from stock based compensation		372
Net cash provided by (used in) financing activities	50,110	(28,020)
Effect of exchange rate changes on cash	(510)	(1,678)
Net increase (decrease) in cash and cash equivalents	66,396	(64,146)
Cash and cash equivalents at beginning of period	24,298	94,250
Cash and cash equivalents at end of period	90,694	30,104
Supplemental cash flow information
Interest paid	$ 1,431	20
Income taxes paid		$ 30,476

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation	1. Basis of Presentation The accompanying unaudited consolidated financial statements of CARBO Ceramics Inc. have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. The consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the annual report on Form 10-K of CARBO Ceramics Inc. for the year ended December 31, 2014. The consolidated financial statements include the accounts of CARBO Ceramics Inc. and its operating subsidiaries (the “Company”). All significant intercompany transactions have been eliminated. In late 2014 and early 2015, a severe decline in oil and natural gas prices led to a significant decline in oil and natural gas industry drilling activities and capital spending. During the three month period ended March 31, 2015, the Company implemented a number of initiatives to preserve cash and lower costs, including: reducing workforce across the organization, lowering production output levels in order to align with lower demand, limiting capital expenditures and reducing dividends. As a result of these measures, the Company temporarily idled production and furloughed employees at the Toomsboro and Millen, Georgia manufacturing plants for approximately 90 days and mothballed the manufacturing plants in McIntyre, Georgia and Luoyang, China. Production resumed at both of the temporarily idled facilities during the second quarter of 2015. In general, temporarily idled facilities are expected to remain closed for a short period of time, generally less than one year. Mothballed facilities are expected to remain closed for one year or longer. The accounting treatment is the same for both temporarily idled and mothballed facilities, except that mothballed assets are evaluated for possible impairment while temporarily idled assets are not necessarily assessed for impairment. The Company continues to depreciate both temporarily idled and mothballed assets. The facility in Toomsboro, Georgia is the Company’s largest manufacturing facility consisting of four production lines. During the third quarter of 2015, one of the four manufacturing lines at the Toomsboro plant ran the entire quarter, while a second line ran part of the quarter. Production levels at the Millen, Georgia and Eufaula, Alabama facilities were near the stated capacity of those facilities. However, the Company expects to temporarily idle the Millen, Georgia facility during the fourth quarter of 2015. The mothballed plants in McIntyre, Georgia and Luoyang, China remained closed. Lower of Cost or Market and Other Inventory Adjustments During the three-month period ended March 31, 2015, the Company reviewed the carrying values of all inventories and concluded that certain inventories in China had been impacted by changes in market conditions. Current market prices had fallen below carrying costs for certain inventories. Consequently, the Company recognized a $3,887 loss in cost of sales, to adjust finished goods and raw materials carrying values to the lower market prices on inventories inside China. The adjustments were based on current market prices for these or similar products, as determined by actual sales, bids, and/or quotes from third parties. The Company again reviewed the carrying values of all inventories as of June 30, 2015 and September 30, 2015 and concluded that no further adjustments were warranted as of those times. In addition, during the three month period ended March 31, 2015, the Company recognized a $485 loss in cost of sales as a result of other inventory adjustments unrelated to lower of cost or market issues. Production Levels Below Normal Capacity As a result of the Company substantially reducing manufacturing production levels, including by idling and mothballing certain facilities, the component of the Company’s accounting policy for inventory relating to operating at production levels below normal capacity was triggered and resulted in certain production costs being expensed instead of being capitalized into inventory. Under this policy, the Company expenses fixed production overhead amounts in excess of amounts that would have been allocated to each unit of production at normal production levels. The Company expensed $25,157 in production costs during the nine month period ended September 30, 2015. There were no such costs in the prior year period. Long-lived assets impairment considerations As noted, the Company plans to idle production at the Millen, Georgia manufacturing facility during the fourth quarter of 2015. The Company does not necessarily assess temporarily idled assets for impairment unless events or circumstances indicate their carrying amounts might not be recoverable. Short-term stoppages of production for less than one year do not necessarily significantly impact the long-term expected cash flows of the idled facility. As of September 30, 2015, the Company did not assess the Millen plant for impairment. However, the Company continues to monitor market conditions closely and, during the fourth quarter of 2015, expects to collect additional information regarding customers’ 2016 drilling plans and budgets that could affect future production plans for the Company’s Millen, Georgia and other manufacturing facilities. Further deterioration of market conditions could result in impairment charges being taken on these and/or other long-lived assets, including the Company’s manufacturing plants, goodwill and intangible assets. The Company will evaluate long-lived assets for impairment at such time that events or circumstances indicate that carrying amounts might be impaired.

(Loss) Earnings Per Share

(Loss) Earnings Per Share	9 Months Ended
	Sep. 30, 2015
(Loss) Earnings Per Share	2. (Loss) Earnings Per Share The following table sets forth the computation of basic and diluted (loss) earnings per share under the two-class method: Three months ended Nine months ended 2015 2014 2015 2014 Numerator for basic and diluted (loss) earnings per share: Net (loss) income $ (13,898 ) $ 13,744 $ (59,504 ) $ 55,189 Effect of reallocating undistributed earnings of participating securities — (90 ) — (379 ) Net (loss) income available under the two-class method $ (13,898 ) $ 13,654 $ (59,504 ) $ 54,810 Denominator: Denominator for basic (loss) earnings per share— weighted-average shares 23,008,922 22,944,840 22,994,445 22,946,956 Effect of dilutive potential common shares — — — — Denominator for diluted (loss) earnings per share— adjusted weighted-average shares 23,008,922 22,944,840 22,994,445 22,946,956 Basic (loss) earnings per share $ (0.60 ) $ 0.60 $ (2.59 ) $ 2.39 Diluted (loss) earnings per share $ (0.60 ) $ 0.60 $ (2.59 ) $ 2.39

Common Stock Repurchase Program

Common Stock Repurchase Program	9 Months Ended
	Sep. 30, 2015
Common Stock Repurchase Program	3. Common Stock Repurchase Program On January 28, 2015, the Company’s Board of Directors authorized the repurchase of up to two million shares of the Company’s common stock. Shares are effectively retired at the time of purchase. As of September 30, 2015, the Company had not repurchased any shares under the plan.

Dividends Paid

Dividends Paid	9 Months Ended
	Sep. 30, 2015
Dividends Paid	4. Dividends Paid On July 21, 2015, the Board of Directors declared a cash dividend of $0.10 per common share payable to shareholders of record on August 3, 2015. The dividend was paid on August 17, 2015. On September 22, 2015, the Board of Directors declared a cash dividend of $0.10 per common share payable to shareholders of record on November 2, 2015. This dividend is payable on November 16, 2015.

Natural Gas Derivative Instrume

Natural Gas Derivative Instruments	9 Months Ended
	Sep. 30, 2015
Natural Gas Derivative Instruments	5. Natural Gas Derivative Instruments Natural gas is used to fire the kilns at the Company’s domestic manufacturing plants. In an effort to mitigate potential volatility in the cost of natural gas purchases and reduce exposure to short-term spikes in the price of this commodity, from time to time, the Company enters into contracts to purchase a portion of the anticipated monthly natural gas requirements at specified prices. Contracts are geographic by plant location. Historically, the Company has taken delivery of all natural gas quantities under contract, which exempted the Company from accounting for the contracts as derivative instruments. However, due to the severe decline in industry activity in early 2015, the Company significantly reduced production levels and consequently did not take delivery of all of the contracted natural gas quantities. As a result, the Company began to account for relevant contracts as derivative instruments. Derivative accounting requires the natural gas contracts to be recognized as either assets or liabilities at fair value with an offsetting entry in earnings. The Company uses the income approach in determining the fair value of these derivative instruments. The model used considers the difference, as of each balance sheet date, between the contracted prices and the New York Mercantile Exchange (“NYMEX”) forward strip price for each contracted period. The estimated cash flows from these contracts are discounted using a discount rate of 5.5%, which reflects the nature of the contracts as well as the timing and risk of estimated cash flows associated with the contracts. The discount rate had an immaterial impact on the fair value of the contracts for the nine months ended September 30, 2015. The last natural gas contract will expire in December 2018. As a result, during the nine months ended September 30, 2015, the Company recognized a loss on derivative instruments of $14,259 in cost of sales. The cumulative present value of the losses on these natural gas derivative contracts as of September 30, 2015 are presented as current and long-term liabilities, as applicable, in the Consolidated Balance Sheet. At September 30, 2015, the Company has contracted for delivery a total of 9,000,000 MMBtu of natural gas at an average price of $4.53 per MMBtu through December 31, 2018. Contracts covering 7,560,000 MMBtu are subject to accounting as derivative instruments. Future decreases in the NYMEX forward strip prices will result in additional derivative losses while future increases in the NYMEX forward strip prices will result in derivative gains. Future gains or losses will approximate the change in NYMEX natural gas prices relative to the total quantity of natural gas under contracts now subject to accounting as derivatives. The historical average NYMEX natural gas contract settlement prices for the quarters ended September 30, 2015 and 2014 were $2.77 per MMBtu and $4.06 per MMBtu, respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements	6. Fair Value Measurements The Company’s derivative instruments are measured at fair value on a recurring basis. U.S. GAAP establishes a fair value hierarchy that has three levels based on the reliability of the inputs used to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company’s natural gas derivative instruments are included within the Level 2 fair value hierarchy. The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value: Fair value as of September 30, 2015 Level 1 Level 2 Level 3 Total Assets $ — $ — $ — $ — Liabilities: Derivative instruments — (11,730 ) — (11,730 ) Total fair value $ — $ (11,730 ) $ — $ (11,730 )

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2015
Stock Based Compensation	7. Stock Based Compensation The 2014 CARBO Ceramics Inc. Omnibus Incentive Plan (the “2014 Omnibus Incentive Plan”) provides for granting of cash-based awards, stock options (both non-qualified and incentive) and other equity-based awards (including stock appreciation rights, phantom stock, restricted stock, restricted stock units, performance shares, deferred share units or share-denominated performance units) to employees and non-employee directors. As of September 30, 2015, 520,303 shares were available for issuance under the 2014 Omnibus Incentive Plan. Although the 2009 CARBO Ceramics Inc. Omnibus Incentive Plan (the “2009 Omnibus Incentive Plan”) has expired, certain nonvested restricted shares granted under that plan remain outstanding in accordance with its terms. Additionally, certain units of phantom stock remain outstanding under the 2009 Omnibus Incentive Plan, as described below. A summary of restricted stock activity and related information for the nine months ended September 30, 2015 is presented below: Shares Weighted- Grant-Date Nonvested at January 1, 2015 147,489 $ 99.51 Granted 225,487 $ 34.62 Vested (63,360 ) $ 101.28 Forfeited (28,102 ) $ 51.52 Nonvested at September 30, 2015 281,514 $ 51.93 As of September 30, 2015, there was $9,759 of total unrecognized compensation cost, net of estimated forfeitures, related to restricted shares granted under both the expired 2009 Omnibus Incentive Plan and the 2014 Omnibus Incentive Plan. That cost is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of shares vested during the nine months ended September 30, 2015 was $6,417. The Company made market-based cash awards to certain executives of the Company pursuant to the 2014 Omnibus Incentive Plan with a total Target Award of $753, as of September 30, 2015. The amount of awards that will ultimately vest can range from 0% to 200% based on the Company’s Relative Total Shareholder Return calculated over a three year period beginning January 1, 2015 through December 31, 2017. The Company also made phantom stock awards to key international employees pursuant to the expired 2009 Omnibus Incentive Plan prior to its expiration and pursuant to the 2014 Omnibus Incentive Plan. The units subject to a phantom stock award vest and cease to be forfeitable in equal annual installments over a three-year period. Participants awarded units of phantom stock are entitled to a lump sum cash payment equal to the fair market value of a share of Common Stock on the vesting date. In no event will Common Stock of the Company be issued with regard to outstanding phantom stock awards. As of September 30, 2015, there were 18,180 units of phantom stock granted under the expired 2009 Omnibus Incentive Plan, of which 12,569 have vested and 2,590 have been forfeited. As of September 30, 2015, there were 5,020 units of phantom stock granted under the 2014 Omnibus Incentive Plan, of which none have vested and none have been forfeited. As of September 30, 2015, nonvested units of phantom stock under the 2009 Omnibus Incentive Plan and the 2014 Omnibus Incentive Plan have a total value of $153, a portion of which is accrued as a liability within Accrued Payroll and Benefits.

Bank Borrowings

Bank Borrowings	9 Months Ended
	Sep. 30, 2015
Bank Borrowings	8. Bank Borrowings The Company has a revolving credit agreement with a bank. On July 27, 2015, the Company entered into a fourth amendment to this credit facility that, among other items, (i) reduced the size of the revolving credit facility from $100,000 to $90,000; (ii) secures borrowings with a blanket lien on substantially all of the Company’s accounts receivable and inventories; (iii) prohibits the Company from granting security interests in the Company’s fixed assets and real property; (iv) sets interest at LIBOR plus 4.00%; (v) sets the maturity date as December 31, 2018; and (vi) waives compliance with the maximum leverage ratio and fixed charge ratio covenants through December 31, 2016. Additionally, the fourth amendment added covenants which (i) requires a minimum assets coverage ratio of 1.25 to 1.0 calculated on a monthly basis and (ii) limits capital expenditures to $65,000 annually through December 31, 2016, subject to maintaining pro forma liquidity of $15,000. The terms of the credit agreement provide for certain affirmative and negative covenants and require the Company to maintain certain financial ratios. As of September 30, 2015, the Company’s outstanding debt under the credit agreement was $88,000 and the weighted average interest rate was 4.54% based on LIBOR-based rate borrowings.

Foreign Currencies

Foreign Currencies	9 Months Ended
	Sep. 30, 2015
Foreign Currencies	9. Foreign Currencies As of September 30, 2015, the Company’s net investment that is subject to foreign currency fluctuations totaled $25,031, and the Company has recorded a cumulative foreign currency translation loss of $26,694. This cumulative translation loss is included in, and is the only component of, Accumulated Other Comprehensive Loss. There were no amounts reclassified to net income during the nine-months ended September 30, 2015. During 2014 and continuing into 2015, the value of the Russian Ruble significantly declined relative to the U.S. dollar. The financial impact of this decline on the Company’s net assets in Russia is included in Other Comprehensive Income and the cumulative foreign currency translation loss noted above. No income tax benefits have been recorded on these losses as a result of the uncertainty about recoverability of the related deferred income tax benefits.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
New Accounting Pronouncements	10. New Accounting Pronouncements In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date,” “Revenue from Contracts with Customers (Topic 606),” In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330),” In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30),”

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2015
Legal Proceedings	11. Legal Proceedings The Company is subject to legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Lower of Cost or Market Inventory Adjustments	Lower of Cost or Market and Other Inventory Adjustments During the three-month period ended March 31, 2015, the Company reviewed the carrying values of all inventories and concluded that certain inventories in China had been impacted by changes in market conditions. Current market prices had fallen below carrying costs for certain inventories. Consequently, the Company recognized a $3,887 loss in cost of sales, to adjust finished goods and raw materials carrying values to the lower market prices on inventories inside China. The adjustments were based on current market prices for these or similar products, as determined by actual sales, bids, and/or quotes from third parties. The Company again reviewed the carrying values of all inventories as of June 30, 2015 and September 30, 2015 and concluded that no further adjustments were warranted as of those times. In addition, during the three month period ended March 31, 2015, the Company recognized a $485 loss in cost of sales as a result of other inventory adjustments unrelated to lower of cost or market issues.
Production Levels Below Normal Capacity	Production Levels Below Normal Capacity As a result of the Company substantially reducing manufacturing production levels, including by idling and mothballing certain facilities, the component of the Company’s accounting policy for inventory relating to operating at production levels below normal capacity was triggered and resulted in certain production costs being expensed instead of being capitalized into inventory. Under this policy, the Company expenses fixed production overhead amounts in excess of amounts that would have been allocated to each unit of production at normal production levels. The Company expensed $25,157 in production costs during the nine month period ended September 30, 2015. There were no such costs in the prior year period.
Long-lived assets impairment considerations	Long-lived assets impairment considerations As noted, the Company plans to idle production at the Millen, Georgia manufacturing facility during the fourth quarter of 2015. The Company does not necessarily assess temporarily idled assets for impairment unless events or circumstances indicate their carrying amounts might not be recoverable. Short-term stoppages of production for less than one year do not necessarily significantly impact the long-term expected cash flows of the idled facility. As of September 30, 2015, the Company did not assess the Millen plant for impairment. However, the Company continues to monitor market conditions closely and, during the fourth quarter of 2015, expects to collect additional information regarding customers’ 2016 drilling plans and budgets that could affect future production plans for the Company’s Millen, Georgia and other manufacturing facilities. Further deterioration of market conditions could result in impairment charges being taken on these and/or other long-lived assets, including the Company’s manufacturing plants, goodwill and intangible assets. The Company will evaluate long-lived assets for impairment at such time that events or circumstances indicate that carrying amounts might be impaired.

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Computation of Basic and Diluted (Loss) Earnings per Share under Two-Class Method	The following table sets forth the computation of basic and diluted (loss) earnings per share under the two-class method: Three months ended Nine months ended 2015 2014 2015 2014 Numerator for basic and diluted (loss) earnings per share: Net (loss) income $ (13,898 ) $ 13,744 $ (59,504 ) $ 55,189 Effect of reallocating undistributed earnings of participating securities — (90 ) — (379 ) Net (loss) income available under the two-class method $ (13,898 ) $ 13,654 $ (59,504 ) $ 54,810 Denominator: Denominator for basic (loss) earnings per share— weighted-average shares 23,008,922 22,944,840 22,994,445 22,946,956 Effect of dilutive potential common shares — — — — Denominator for diluted (loss) earnings per share— adjusted weighted-average shares 23,008,922 22,944,840 22,994,445 22,946,956 Basic (loss) earnings per share $ (0.60 ) $ 0.60 $ (2.59 ) $ 2.39 Diluted (loss) earnings per share $ (0.60 ) $ 0.60 $ (2.59 ) $ 2.39

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements of Financial Assets and Liabilities on Recurring and Non Recurring Basis	The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value: Fair value as of September 30, 2015 Level 1 Level 2 Level 3 Total Assets $ — $ — $ — $ — Liabilities: Derivative instruments — (11,730 ) — (11,730 ) Total fair value $ — $ (11,730 ) $ — $ (11,730 )

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Restricted Stock Activity and Related Information	A summary of restricted stock activity and related information for the nine months ended September 30, 2015 is presented below: Shares Weighted- Grant-Date Nonvested at January 1, 2015 147,489 $ 99.51 Granted 225,487 $ 34.62 Vested (63,360 ) $ 101.28 Forfeited (28,102 ) $ 51.52 Nonvested at September 30, 2015 281,514 $ 51.93

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2015	Sep. 30, 2015
Significant Accounting Policies [Line Items]
Lower of Cost or Market Inventory Adjustments		$ 3,887
Other Inventory Adjustments	$ 485
Production cost		$ 25,157
Georgia | Toomsboro
Significant Accounting Policies [Line Items]
Production idling period		90 days
Georgia | Millen
Significant Accounting Policies [Line Items]
Production idling period		90 days

Computation of Basic and Dilute

Computation of Basic and Diluted (Loss) Earnings per Share under Two-Class Method (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator for basic and diluted (loss) earnings per share:
Net (loss) income	$ (13,898)	$ 13,744	$ (59,504)	$ 55,189
Effect of reallocating undistributed earnings of participating securities		(90)		(379)
Net (loss) income available under the two-class method	$ (13,898)	$ 13,654	$ (59,504)	$ 54,810
Denominator:
Denominator for basic (loss) earnings per share- weighted-average shares	23,008,922	22,944,840	22,994,445	22,946,956
Effect of dilutive potential common shares	0	0	0	0
Denominator for diluted (loss) earnings per share- adjusted weighted-average shares	23,008,922	22,944,840	22,994,445	22,946,956
Basic (loss) earnings per share	$ (0.60)	$ 0.60	$ (2.59)	$ 2.39
Diluted (loss) earnings per share	$ (0.60)	$ 0.60	$ (2.59)	$ 2.39

Common Stock Repurchase Progr24

Common Stock Repurchase Program - Additional Information (Detail) - shares	9 Months Ended
	Sep. 30, 2015	Jan. 28, 2015
Equity, Class of Treasury Stock [Line Items]
Board of Directors authorized the repurchase of common stock		2,000,000
Shares repurchased	0

Dividends Paid - Additional Inf

Dividends Paid - Additional Information (Detail) - $ / shares	Sep. 22, 2015	Jul. 21, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Dividends Payable [Line Items]
Dividends declared per common share			$ 0.20	$ 0.66	$ 0.63	$ 1.26
Dividend Declared
Dividends Payable [Line Items]
Dividends declared per common share	$ 0.10	$ 0.10
Cash dividend, date dividend paid	Nov. 16, 2015	Aug. 17, 2015
Cash dividend, record date	Nov. 2, 2015	Aug. 3, 2015
Cash dividend, declaration date	Sep. 22, 2015	Jul. 21, 2015

Natural Gas Derivative Instru26

Natural Gas Derivative Instruments - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)MMBTU$ / MMBTU	Sep. 30, 2014$ / MMBTU
Derivative [Line Items]
Loss on derivative instruments | $	$ (11,730)
Natural gas derivative contract
Derivative [Line Items]
Estimated cash flows, discount rate	5.50%
Last derivative contract expiration month and year	2018-12
Contracts volume, derivative instruments	7,560,000
Average price | $ / MMBTU	2.77	4.06
Natural gas derivative contract | 2015 through December 31, 2018
Derivative [Line Items]
Contracts volume, derivative instruments	9,000,000
Average price | $ / MMBTU	4.53
Cost of Sales
Derivative [Line Items]
Loss on derivative instruments | $	$ (14,259)

Fair Value Measurements of Fina

Fair Value Measurements of Financial Assets and Liabilities on Recurring and Non Recurring Basis (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets	$ 0
Liabilities:
Derivative instruments	(11,730)
Total fair value	(11,730)
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets	0
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets	0
Liabilities:
Derivative instruments	(11,730)
Total fair value	(11,730)
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets	$ 0

Stock Based Compensation - Addi

Stock Based Compensation - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)shares
Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance under the plan	520,303
Omnibus Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, net | $	$ 9,759
Unrecognized compensation expense, net, weighted average period	2 years
Total fair value of restricted stock vested | $	$ 6,417
Omnibus Incentive Plan | Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Total fair value of units outstanding | $	$ 153
2014 Omnibus Incentive Plan | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash awards | $	$ 753
Vesting period	3 years
2014 Omnibus Incentive Plan | Executive Officer | Beginning January 1, 2015 through December 31, 2017 | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.00%
2014 Omnibus Incentive Plan | Executive Officer | Beginning January 1, 2015 through December 31, 2017 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%
2014 Omnibus Incentive Plan | Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted	5,020
Units vested	0
Units forfeited	0
2009 Omnibus Incentive Plan | Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted	18,180
Units vested	12,569
Units forfeited	2,590

Summary of Restricted Stock Act

Summary of Restricted Stock Activity and Related Information (Detail) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Shares
Beginning Balance | shares	147,489
Granted | shares	225,487
Vested | shares	(63,360)
Forfeited | shares	(28,102)
Ending Balance | shares	281,514
Weighted-Average Grant-Date Fair Value Per Share
Beginning Balance	$ 99.51
Granted	34.62
Vested	101.28
Forfeited	51.52
Ending Balance	$ 51.93

Bank Borrowings - Additional In

Bank Borrowings - Additional Information (Detail) - USD ($)	Jul. 27, 2015	Sep. 30, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Line of credit facility, amount outstanding		$ 88,000,000	$ 25,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit amendment date		Jul. 27, 2015
Line of credit, maximum borrowing capacity		$ 100,000,000
Line of credit facility, amount outstanding		$ 88,000,000
Line of credit, weighted average interest rate		4.54%
Fourth Amendment | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 90,000,000
Revolving credit facility, maturity date	Dec. 31, 2018
Asset coverage ratio	125.00%
Capital expenditures	$ 65,000,000
Proforma liquidity	$ 15,000,000
Fourth Amendment | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	4.00%

Foreign Currencies - Additional

Foreign Currencies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Foreign Currency Balance [Line Items]
Investment subject to foreign currency fluctuations	$ 25,031,000		$ 25,031,000
Cumulative foreign currency translation loss, net of deferred income tax benefit	(26,694,000)		(26,694,000)		$ (22,969,000)
Amount reclassified to net income			0
Income tax (benefit) expense	$ (5,387,000)	$ 5,312,000	(27,346,000)	$ 25,680,000
Foreign Currency Exchange Loss, Net
Schedule of Foreign Currency Balance [Line Items]
Income tax (benefit) expense			$ 0