Carbo Ceramics (CRRTQ) 10-Q 27 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 21, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,139,979

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 55,591	$ 91,680
Restricted cash	5,503
Trade accounts and other receivables, net	29,429	23,622
Inventories:
Finished goods	71,813	74,133
Raw materials and supplies	20,025	23,041
Total inventories	91,838	97,174
Prepaid expenses and other current assets	4,211	3,548
Income tax receivable	2,633	1,199
Total current assets	189,205	217,223
Restricted cash	6,289
Property, plant and equipment:
Land and land improvements	45,534	45,530
Land-use and mineral rights	19,696	19,696
Buildings	87,713	87,318
Machinery and equipment	648,242	647,753
Construction in progress	92,932	92,704
Total property, plant and equipment	894,117	893,001
Less accumulated depreciation and amortization	410,914	398,898
Net property, plant and equipment	483,203	494,103
Goodwill	3,500	3,500
Intangible and other assets, net	9,106	8,631
Total assets	691,303	723,457
Current liabilities:
Long-term debt, current portion		13,000
Accounts payable	6,298	7,782
Accrued payroll and benefits	2,595	3,434
Derivative instruments	2,135	1,599
Other accrued expenses	10,390	8,989
Total current liabilities	21,418	34,804
Deferred income taxes	2,290	1,236
Long-term debt, net	47,957	42,404
Notes payable, related parties	25,000	25,000
Other long-term liabilities	4,006	3,443
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; 27,139,979 and 26,881,066 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	271	269
Additional paid-in capital	122,511	117,192
Retained earnings	500,472	533,435
Accumulated other comprehensive loss	(32,622)	(34,326)
Total shareholders' equity	590,632	616,570
Total liabilities and shareholders' equity	$ 691,303	$ 723,457

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
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	27,139,979	26,881,066
Common stock, share outstanding	27,139,979	26,881,066

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues	$ 34,670	$ 33,102
Cost of sales	54,128	56,743
Gross loss	(19,458)	(23,641)
Selling, general and administrative expenses	10,797	11,475
Loss on disposal or impairment of assets	0	948
Operating loss	(30,255)	(36,064)
Other expense:
Interest expense, net	(2,088)	(797)
Other, net	187	76
Nonoperating income (expense), total	(1,901)	(721)
Loss before income taxes	(32,156)	(36,785)
Income tax expense (benefit)	288	(12,101)
Net loss	$ (32,444)	$ (24,684)
Loss per share:
Basic	$ (1.22)	$ (1.07)
Diluted	(1.22)	(1.07)
Other information:
Dividends declared per common share	$ 0	$ 0

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (32,444)	$ (24,684)
Other comprehensive income:
Foreign currency translation adjustment	1,704	1,443
Deferred income taxes	0	0
Other comprehensive income, net of tax	1,704	1,443
Comprehensive loss	$ (30,740)	$ (23,241)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (32,444)	$ (24,684)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	12,430	12,291
Provision for doubtful accounts	238	424
Deferred income taxes	1,302	(11,897)
Loss on disposal or impairment of assets	0	948
Foreign currency transaction loss (gain), net	5	(129)
Stock compensation expense	1,348	1,564
Change in fair value of derivative instruments	385	(784)
Changes in operating assets and liabilities:
Trade accounts and other receivables	(5,794)	23,339
Inventories	5,455	(5,937)
Prepaid expenses and other current assets	(650)	169
Accounts payable	(1,475)	(439)
Accrued expenses	785	(2,879)
Income tax receivable, net	(1,377)	(277)
Other, net	721	(4)
Net cash used in operating activities	(19,071)	(8,295)
Investing activities
Capital expenditures	(634)	(6,088)
Net cash used in investing activities	(634)	(6,088)
Financing activities
Repayments on long-term debt	(3,250)	(23,000)
Repayments on insurance financing agreement	(462)	0
Payments of debt issuance costs	(875)	0
Purchase of common stock	(518)	(418)
Net cash used in financing activities	(5,105)	(23,418)
Effect of exchange rate changes on cash	513	397
Net decrease in cash and cash equivalents and restricted cash	(24,297)	(37,404)
Cash and cash equivalents and restricted cash at beginning of period	91,680	78,866
Cash and cash equivalents and restricted cash at end of period	67,383	41,462
Supplemental cash flow information
Interest paid	761	966
Income taxes paid	$ 0	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
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, 2016 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, 2016 included in the annual report on Form 10-K of CARBO Ceramics Inc. for the year ended December 31, 2016. The consolidated financial statements include the accounts of CARBO Ceramics Inc. and its operating subsidiaries (the “Company”). All significant intercompany transactions have been eliminated. Beginning in late 2014, 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. As a result of the continued negative impact this has had on its business, the Company continues to operate its plants at significantly reduced levels. As of March 31, 2017, the Company is producing ceramic proppants from its Eufaula, Alabama and Kopeysk, Russia manufacturing facilities, and processing sand at its Marshfield, Wisconsin facility. The Company produces ceramic pellets for the industrial markets in a limited capacity, and when market demands, at our McIntyre, Georgia facility. Our Millen, Georgia facility is currently mothballed, and our Toomsboro, Georgia facility is currently idled. As a result of the steps the Company has taken to enhance its liquidity, the Company currently believes that cash on hand will enable the Company to meet its working capital, capital expenditure, debt service and other funding requirements for at least one year from the date of this Form 10-Q. The Company’s view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2017 and 2018, which is impacted by various assumptions regarding demand and sales prices for our products. Although the Company has observed certain factors in the first quarter 2017 that could be indicative of improving industry conditions, its financial forecasts in recent periods have not always been accurate due to the inability to estimate customer demand, which is highly volatile in the current operating environment. The Company has no committed sales backlog from its customers. As a result, there is no guarantee that its financial forecast, which projects sufficient cash will be available to meet planned operating expenses and other cash needs, will be achieved. Additionally, the construction projects relating to the second production line at Millen, Georgia and the second phase of the retrofit of an existing plant with the KRYPTOSPHERE® technology remain suspended. As of March 31, 2017, the value of the temporarily suspended projects relating to these two projects totaled approximately 93% of the Company’s total construction in progress, and both projects are over 90% complete. Deferred Taxes – Valuation Allowance Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, provides the carrying value of deferred tax assets should be reduced by the amount not expected to be realized. A company should reduce deferred tax assets by a valuation allowance if, based on the weight of all available evidence, it is not more likely than not that some portion or all of the deferred tax assets will be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. ASC 740 requires all available evidence, both positive and negative, be considered to determine whether a valuation allowance for deferred tax assets is needed in the financial statements. Additionally there can be statutory limitations and losses also assessed on the deferred tax assets should certain conditions arise. As a result of the significant decline in oil and gas activities and net losses incurred over the past several quarters, we determined during the three months ended March 31, 2017 that it was more likely than not that a portion of our deferred tax assets will not be realized in the future. Accordingly, we established a $10,477 valuation allowance against a portion of our deferred tax assets. Our assessment of the realizability of our deferred tax assets is based on the weight of all available evidence, both positive and negative, including future reversals of deferred tax liabilities. Restricted Cash As a result of the repayment of the Wells Fargo term loan, combined with the continued use of letters of credit and corporate cards with Wells Fargo (see Note 7), a portion of the Company’s cash balance is now restricted to its use in order to provide collateral to Wells Fargo. As of March 31, 2017 and December 31, 2016, restricted cash was $11,792 and $0, respectively. Lower of Cost or Market Adjustments As of March 31, 2017 and 2016, the Company reviewed the carrying values of all inventories and concluded that no adjustments were warranted for finished goods and raw materials intended for use in the Company’s manufacturing process. Manufacturing Production Levels Below Normal Capacity As a result of the Company substantially reducing manufacturing production levels, including by idling certain facilities, certain production costs have been expensed instead of being capitalized into inventory. 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. For the three months ended March 31, 2017 and 2016, the Company expensed $11,212 and $9,707, respectively, in production costs. Long-lived and other noncurrent assets impairment considerations As noted, the Company has temporarily idled production at various manufacturing facilities, including throughout 2017 and 2016. The Company does not assess temporarily idled assets for impairment unless events or circumstances indicate that the carrying amounts of those assets may not be recoverable. Short-term stoppages of production for less than one year do not generally significantly impact the long-term expected cash flows of the idled facility. As of March 31, 2016, as a result of changes in the planned usage of certain long-term bauxite raw materials, the Company evaluated the carrying value of those bauxite raw materials. Based upon this evaluation, during the three months ended March 31, 2016, the Company recognized an impairment charge of $1,065 on these bauxite raw material inventories. At December 31, 2016, as a result of the continued and severity of the market downturn, the Company identified indicators of impairments related to each of its domestic manufacturing plant asset groups. The Company completed undiscounted cash flow analyses on that date and determined no impairment charge was necessary at that time. As of March 31, 2017, the Company concluded that there were no events or circumstances that would indicate that carrying amounts of long-lived and other noncurrent assets might be impaired. However, the Company continues to monitor market conditions closely. Further deterioration of market conditions could result in impairment charges being taken on the Company’s long-lived and other noncurrent assets, including the Company’s manufacturing plants, goodwill and intangible assets. The Company will evaluate long-lived and other noncurrent assets for impairment at such time that events or circumstances indicate that carrying amounts might be impaired.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Loss Per Share	2. Loss Per Share The following table sets forth the computation of basic and diluted loss per share under the two-class method: Three months ended March 31, 2017 2016 Numerator for basic and diluted loss per share: Net loss $ (32,444 ) $ (24,684 ) Effect of reallocating undistributed earnings of participating securities — — Net loss available under the two-class method $ (32,444 ) $ (24,684 ) Denominator: Denominator for basic loss per share--weighted-average shares 26,607,377 23,062,560 Effect of dilutive potential common shares — — Denominator for diluted loss per share--adjusted weighted-average shares 26,607,377 23,062,560 Basic loss per share $ (1.22 ) $ (1.07 ) Diluted loss per share $ (1.22 ) $ (1.07 )

Common Stock Repurchase Program

Common Stock Repurchase Program	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
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 March 31, 2017, the Company had not repurchased any shares under the plan.

Natural Gas Derivative Instrume

Natural Gas Derivative Instruments	3 Months Ended
	Mar. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Natural Gas Derivative Instruments	4. 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. As a result of the Company’s significantly reducing production levels and not taking delivery of all of the contracted natural gas quantities, the Company accounts 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 8.0%, 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 three months ended March 31, 2017. The last of these natural gas contracts will expire in December 2018. During the three months ended March 31, 2017 and 2016, the Company recognized an $891 and $227 loss, respectively, in cost of sales on derivatives instruments. The cumulative present value of these natural gas derivative contracts as of March 31, 2017 are presented as current and long-term liabilities, as applicable, in the Consolidated Balance Sheet. At March 31, 2017, the Company had contracted for delivery a total of 3,690,000 MMBtu of natural gas at an average price of $4.37 per MMBtu through December 31, 2018. Contracts covering 3,480,000 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 three months ended March 31, 2017 and 2016 were $3.32 per MMBtu and $2.09 per MMBtu, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. 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: (1) Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; (2) Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and (3) 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 Level 2 of the fair value hierarchy (see Note 4 herein for additional information on the derivative instruments). 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 March 31, 2017 Level 1 Level 2 Level 3 Total Liabilities: Derivative instruments — (3,852 ) — (3,852 ) Total fair value $ — $ (3,852 ) $ — $ (3,852 ) Fair value as of December 31, 2016 Level 1 Level 2 Level 3 Total Liabilities: Derivative instruments — (3,468 ) — (3,468 ) Total fair value $ — $ (3,468 ) $ — $ (3,468 ) At March 31, 2017, the fair value of the Company’s long-term debt approximated the carrying value.

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Based Compensation	6. Stock Based Compensation The 2014 CARBO Ceramics Inc. Omnibus Incentive Plan (the “2014 Omnibus Incentive Plan”) provides for the 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 March 31, 2017, 52,961 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 three months ended March 31, 2017 is presented below: Shares Weighted-Average Grant-Date Fair Value Per Share Nonvested at January 1, 2017 339,140 $ 28.59 Granted 297,685 $ 10.30 Vested (136,063 ) $ 35.68 Forfeited (2,549 ) $ 12.94 Nonvested at March 31, 2017 498,213 $ 15.81 As of March 31, 2017, there was $6,816 of total unrecognized compensation cost 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 2.3 years. The total fair value of shares vested during the three months ended March 31, 2017 was $1,947. The Company made market-based cash awards to certain executives of the Company pursuant to the 2014 Omnibus Incentive Plan. As of March 31, 2017, the total target award outstanding was $2,982. The payout of awards can range from 0% to 200% based on the Company’s Relative Total Shareholder Return calculated over a three year period beginning January 1 of the year each grant was made. The Company also made phantom stock awards to key employees 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 March 31, 2017, there were no units of phantom stock outstanding from the expired 2009 Omnibus Incentive Plan. As of March 31, 2017, there were 163,215 units of phantom stock granted under the 2014 Omnibus Incentive Plan, of which 4,189 have vested and 2,292 have been forfeited. As of March 31, 2017, nonvested units of phantom stock under the 2014 Omnibus Incentive Plan had a total value of $2,044, a portion of which is accrued as a liability within Accrued Payroll and Benefits. Compensation expense for these units of phantom stock will be recognized over the three-year vesting period. The amount of compensation expense recognized each period will be based on the fair value of the Company’s common stock at the end of each period.

Long-Term Debt and Notes Payabl

Long-Term Debt and Notes Payable	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt and Notes Payable	7. Long-Term Debt and Notes Payable On March 2, 2017, the Company entered into an Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wilks Brothers, LLC (“Wilks”) to replace its current term loan with Wells Fargo Bank, National Association (“Wells Fargo”) and provide the Company with additional liquidity for a longer term. The New Credit Agreement is a $65,000 facility maturing on December 31, 2022, that consists of a $52,651 term loan that was made at closing to pay off Wells Fargo and an additional term loan of $12,349 that will be made in a single advance to the Company after the Company satisfies certain post-closing conditions. The $52,651 term loan was a non-cash transaction to the Company as Wilks directly paid Wells Fargo and assumed the New Credit Agreement. The Company’s obligations bear interest at 9.00% and are guaranteed by its two domestic operating subsidiaries. No principal repayments are required until maturity (except in unusual circumstances), and there are no financial covenants. In lieu of making cash interest payments, the Company has the option during the first two years of the loan to make interest payments as payment-in-kind, or PIK, by applying an 11.00% rate to the interest payment due (instead of the 9.00% cash interest rate) and capitalizing the resulting amount to the outstanding principal balance of the loan. The Company is required to provide Wilks 30 day notice of its intent to exercise this option for an interest payment. The Company does not anticipate utilizing this option and has therefore accrued interest expense using the 9.00% cash interest rate. The loan cannot be prepaid during the first three years without making the lenders whole for interest that would have been payable over the entire remaining term of the loan. The Company’s obligations under the New Credit Agreement are secured by: (i) a pledge of all accounts receivable and inventory, (ii) cash in certain accounts, (iii) domestic distribution assets residing on owned real property, (iv) the Company’s Marshfield, Wisconsin and Toomsboro, Georgia plant facilities and equipment, and (v) certain real property interests in mines and minerals. Other liens previously in favor of Wells Fargo were released. As of March 31, 2017, the Company’s outstanding debt under its New Credit Agreement was $52,651. During the period ended March 31, 2017, the Company expensed $455 of debt issuance costs relating to the previous Wells Fargo Amended Credit Agreement. As of March 31, 2017, the Company had $862 of unamortized debt issuance costs relating to the New Credit Agreement that are presented as a direct reduction from the carrying amount of the long-term debt obligation. The Company had $10,730 and $11,980 in standby letters of credit issued through Wells Fargo as of March 31, 2017 and December 31, 2016, respectively, primarily as collateral relating to our natural gas commitments and railcar leases. As of December 31, 2016, the Company’s outstanding debt under its previous Wells Fargo Amended Credit Agreement was $55,901, of which $13,000 was classified as current and $42,901 was classified as long-term. As of December 31, 2016, the Company had $497 of debt issuance costs that are presented as a direct reduction from the carrying amount of the long-term debt obligation. For the year ended December 31, 2016, the weighted average interest rate was 6.447% based on LIBOR-based rate borrowings. On March 2, 2017, in connection with entry into the New Credit Agreement, the Company issued a Warrant (the “Warrant”) to Wilks. Subject to the terms of the Warrant, the Warrant entitles the holder thereof to purchase up to 523,022 shares of the Common Stock, at an exercise price of $14.91 per share, payable in cash. The Warrant expires on December 31, 2022. Until receipt of the Stockholder Approval, the holder of the Warrant shall not be entitled to exercise the Warrant to the extent that the number of shares of Common Stock to be purchased upon such exercise, plus the number of shares of Common Stock purchased on any prior exercise of the Warrant, exceeds 271,414 shares of Common Stock (which amount represents approximately 1% of the number of shares of Common Stock currently outstanding)‎. Based on a Schedule 13D filing with the SEC, as of March 10, 2017, Wilks owned 9.6% of the Company’s outstanding common stock, and should Wilks fully exercise the Warrant to purchase an additional 523,022 shares, it would hold 11.5% of the Company’s outstanding common stock. The Company allocated the proceeds received of $52,651 to each of these two instruments based on their relative fair values. Accordingly, the Company recorded long-term debt of $48,780 and warrants of $3,871 at inception. The amount associated with the Warrant was recorded as an increase to additional paid-in capital. The original issue discount of the long-term debt will be amortized using the effective interest method over the term of the loan. As of March 31, 2017, the unamortized original issue discount was $3,832. In May 2016, the Company received proceeds of $25,000 from the issuance of separate unsecured Promissory Notes (the “Notes”) to two of the Company’s Directors. Each Note matures on April 1, 2019 and bears interest at 7.00%. On March 2, 2017, in connection with the New Credit Agreement, the Notes were amended to provide for payment-in-kind, or PIK, interest payments at 8.00% until the lenders under the New Credit Agreement receive two consecutive semi-annual cash interest payments. Interest cost for the three months ended March 31, 2017 and 2016 was $2,233 and $980, respectively, of which $0 and $80 was capitalized into the cost of property, plant and equipment in the three months ended March 31, 2017 and 2016, respectively. Interest cost primarily includes interest expense relating to our debts as well as amortization and the write-off of debt issuance costs and amortization of the original issue discount associated with the New Credit Agreement and Warrant.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders Equity Note [Abstract]
Shareholders' Equity	8. Shareholders’ Equity On July 28, 2016, the Company filed a prospectus supplement and associated sales agreement related to an at-the-market (“ATM”) equity offering program pursuant to which the Company may sell, from time to time, common stock having an aggregate offering price of up to $75,000 through Cowen and Company LLC, as sales agent, for general corporate purposes. As of March 31, 2017, the Company had sold a total of 3,405,709 shares of its common stock under the ATM program for $46,612, or an average of $13.69 per share, and received proceeds of $45,564, net of commissions of $1,048. These sales occurred in August 2016 and September 2016, and the Company has not utilized the program since those sales. As of March 31, 2017, the Company’s net investment that is subject to foreign currency fluctuations totaled $15,950, and the Company has recorded a cumulative foreign currency translation loss of $32,622, all related to the Russian Ruble. This cumulative translation loss is included in and is the only component of accumulated other comprehensive loss within shareholders’ equity. 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	3 Months Ended
	Mar. 31, 2017
Accounting Changes And Error Corrections [Abstract]
New Accounting Pronouncements	9. New Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230) – Restricted Cash In August 2015, the FASB issued ASU No. 2015-14, “ Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330),”

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	10. Segment Information The Company has two operating segments: 1) oilfield technologies and services and 2) environmental products and services. Discrete financial information is available for each operating segment. Management of each operating segment reports to our Chief Executive Officer, the Company’s chief operating decision maker, who regularly evaluates income before income taxes as the measure to evaluate segment performance and to allocate resources. The accounting policies of each segment are the same as those described in the summary of significant accounting policies in Note 1 of the consolidated financial statements included in the annual report on Form 10-K for the year ended December 31, 2016. The Company’s oilfield technologies and services segment manufactures and sells ceramic proppants on a global basis for use primarily in the hydraulic fracturing of natural gas and oil wells. All of the Company’s ceramic proppant products have similar production processes and economic characteristics and are marketed predominantly to pressure pumping companies that perform hydraulic fracturing for major oil and gas companies. The Company’s manufacturing facilities also produce ceramic pellets for use in various industrial technology applications, including but not limited to casting and milling. This segment also promotes increased production and Estimated Ultimate Recovery (“EUR”) of oil and natural gas by providing industry leading technology to Design, Build, and Optimize the Frac TM ® Our environmental products and services segment is intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (“LOE”). AGPI, a wholly-owned subsidiary of ours, provides spill prevention, containment and countermeasure systems for the oil and gas industry. AGPI uses proprietary technology designed to enable its clients to extend the life of their storage assets, reduce the potential for hydrocarbon spills and provide containment of stored materials. Summarized financial information for the Company’s operating segments for the three months ended March 31, 2017 and 2016 is shown in the following tables. Intersegment sales are not material. Oilfield Technologies and Services Environmental Products and Services Total ($ in thousands) Three Months Ended March 31, 2017 Revenue from external customers $ 29,620 $ 5,050 $ 34,670 Loss before income taxes (31,763 ) (393 ) (32,156 ) Depreciation and amortization 12,094 336 12,430 Three Months Ended March 31, 2016 Revenue from external customers $ 29,409 $ 3,693 $ 33,102 Loss before income taxes (36,000 ) (785 ) (36,785 ) Depreciation and amortization 11,853 438 12,291

Legal Proceedings

Legal Proceedings	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
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)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Deferred Taxes – Valuation Allowance	Deferred Taxes – Valuation Allowance Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, provides the carrying value of deferred tax assets should be reduced by the amount not expected to be realized. A company should reduce deferred tax assets by a valuation allowance if, based on the weight of all available evidence, it is not more likely than not that some portion or all of the deferred tax assets will be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. ASC 740 requires all available evidence, both positive and negative, be considered to determine whether a valuation allowance for deferred tax assets is needed in the financial statements. Additionally there can be statutory limitations and losses also assessed on the deferred tax assets should certain conditions arise. As a result of the significant decline in oil and gas activities and net losses incurred over the past several quarters, we determined during the three months ended March 31, 2017 that it was more likely than not that a portion of our deferred tax assets will not be realized in the future. Accordingly, we established a $10,477 valuation allowance against a portion of our deferred tax assets. Our assessment of the realizability of our deferred tax assets is based on the weight of all available evidence, both positive and negative, including future reversals of deferred tax liabilities.
Restricted Cash	Restricted Cash As a result of the repayment of the Wells Fargo term loan, combined with the continued use of letters of credit and corporate cards with Wells Fargo (see Note 7), a portion of the Company’s cash balance is now restricted to its use in order to provide collateral to Wells Fargo. As of March 31, 2017 and December 31, 2016, restricted cash was $11,792 and $0, respectively.
Lower of Cost or Market Adjustments	Lower of Cost or Market Adjustments As of March 31, 2017 and 2016, the Company reviewed the carrying values of all inventories and concluded that no adjustments were warranted for finished goods and raw materials intended for use in the Company’s manufacturing process.
Manufacturing Production Levels Below Normal Capacity	Manufacturing Production Levels Below Normal Capacity As a result of the Company substantially reducing manufacturing production levels, including by idling certain facilities, certain production costs have been expensed instead of being capitalized into inventory. 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. For the three months ended March 31, 2017 and 2016, the Company expensed $11,212 and $9,707, respectively, in production costs.
Long-lived and other noncurrent assets impairment considerations	Long-lived and other noncurrent assets impairment considerations As noted, the Company has temporarily idled production at various manufacturing facilities, including throughout 2017 and 2016. The Company does not assess temporarily idled assets for impairment unless events or circumstances indicate that the carrying amounts of those assets may not be recoverable. Short-term stoppages of production for less than one year do not generally significantly impact the long-term expected cash flows of the idled facility. As of March 31, 2016, as a result of changes in the planned usage of certain long-term bauxite raw materials, the Company evaluated the carrying value of those bauxite raw materials. Based upon this evaluation, during the three months ended March 31, 2016, the Company recognized an impairment charge of $1,065 on these bauxite raw material inventories. At December 31, 2016, as a result of the continued and severity of the market downturn, the Company identified indicators of impairments related to each of its domestic manufacturing plant asset groups. The Company completed undiscounted cash flow analyses on that date and determined no impairment charge was necessary at that time. As of March 31, 2017, the Company concluded that there were no events or circumstances that would indicate that carrying amounts of long-lived and other noncurrent assets might be impaired. However, the Company continues to monitor market conditions closely. Further deterioration of market conditions could result in impairment charges being taken on the Company’s long-lived and other noncurrent assets, including the Company’s manufacturing plants, goodwill and intangible assets. The Company will evaluate long-lived and other noncurrent assets for impairment at such time that events or circumstances indicate that carrying amounts might be impaired.

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Loss per Share under Two-Class Method	The following table sets forth the computation of basic and diluted loss per share under the two-class method: Three months ended March 31, 2017 2016 Numerator for basic and diluted loss per share: Net loss $ (32,444 ) $ (24,684 ) Effect of reallocating undistributed earnings of participating securities — — Net loss available under the two-class method $ (32,444 ) $ (24,684 ) Denominator: Denominator for basic loss per share--weighted-average shares 26,607,377 23,062,560 Effect of dilutive potential common shares — — Denominator for diluted loss per share--adjusted weighted-average shares 26,607,377 23,062,560 Basic loss per share $ (1.22 ) $ (1.07 ) Diluted loss per share $ (1.22 ) $ (1.07 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
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 March 31, 2017 Level 1 Level 2 Level 3 Total Liabilities: Derivative instruments — (3,852 ) — (3,852 ) Total fair value $ — $ (3,852 ) $ — $ (3,852 ) Fair value as of December 31, 2016 Level 1 Level 2 Level 3 Total Liabilities: Derivative instruments — (3,468 ) — (3,468 ) Total fair value $ — $ (3,468 ) $ — $ (3,468 )

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Restricted Stock Activity and Related Information	A summary of restricted stock activity and related information for the three months ended March 31, 2017 is presented below: Shares Weighted-Average Grant-Date Fair Value Per Share Nonvested at January 1, 2017 339,140 $ 28.59 Granted 297,685 $ 10.30 Vested (136,063 ) $ 35.68 Forfeited (2,549 ) $ 12.94 Nonvested at March 31, 2017 498,213 $ 15.81

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Financial Information for Operating Segments	Summarized financial information for the Company’s operating segments for the three months ended March 31, 2017 and 2016 is shown in the following tables. Intersegment sales are not material. Oilfield Technologies and Services Environmental Products and Services Total ($ in thousands) Three Months Ended March 31, 2017 Revenue from external customers $ 29,620 $ 5,050 $ 34,670 Loss before income taxes (31,763 ) (393 ) (32,156 ) Depreciation and amortization 12,094 336 12,430 Three Months Ended March 31, 2016 Revenue from external customers $ 29,409 $ 3,693 $ 33,102 Loss before income taxes (36,000 ) (785 ) (36,785 ) Depreciation and amortization 11,853 438 12,291

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)Project	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Significant Accounting Policies [Line Items]
Number of projects suspended | Project	2
Percentage of suspended projects relating to two projects	93.00%
Projects completed percentage	90.00%
Deferred tax assets, valuation allowance	$ 10,477,000
Restricted cash	11,792,000		$ 0
Lower of cost or market inventory adjustment	0	$ 0
Production cost	$ 11,212,000	9,707,000
Impairment charge related to manufacturing plant asset groups			$ 0
Bauxite raw materials
Significant Accounting Policies [Line Items]
Impairment of long-term portion of the bauxite raw material		$ 1,065,000

Computation of Basic and Dilute

Computation of Basic and Diluted Loss per Share under Two-Class Method (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator for basic and diluted loss per share:
Net loss	$ (32,444)	$ (24,684)
Effect of reallocating undistributed earnings of participating securities	0	0
Net loss available under the two-class method	$ (32,444)	$ (24,684)
Denominator:
Denominator for basic loss per share--weighted-average shares	26,607,377	23,062,560
Effect of dilutive potential common shares	0	0
Denominator for diluted loss per share--adjusted weighted-average shares	26,607,377	23,062,560
Basic loss per share	$ (1.22)	$ (1.07)
Diluted loss per share	$ (1.22)	$ (1.07)

Common Stock Repurchase Progr25

Common Stock Repurchase Program - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Jan. 28, 2015
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	0
Maximum
Equity, Class of Treasury Stock [Line Items]
Board of Directors authorized the repurchase of common stock		2,000,000

Natural Gas Derivative Instru26

Natural Gas Derivative Instruments - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)MMBTU$ / MMBTU	Mar. 31, 2016USD ($)$ / MMBTU
Natural gas derivative contract
Derivative [Line Items]
Estimated cash flows, discount rate	8.00%
Last derivative contract expiration month and year	2018-12
Contracts volume, derivative instruments | MMBTU	3,480,000
Average price | $ / MMBTU	3.32	2.09
Natural gas derivative contract | 2015 through December 31, 2018
Derivative [Line Items]
Contracts volume, derivative instruments | MMBTU	3,690,000
Average price | $ / MMBTU	4.37
Cost of Sales
Derivative [Line Items]
Gain (loss) on derivative instruments | $	$ (891)	$ (227)

Fair Value Measurements of Fina

Fair Value Measurements of Financial Assets and Liabilities on Recurring and Non Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Liabilities:
Derivative instruments	$ (3,852)	$ (3,468)
Total fair value	(3,852)	(3,468)
Fair Value, Inputs, Level 2
Liabilities:
Derivative instruments	(3,852)	(3,468)
Total fair value	$ (3,852)	$ (3,468)

Stock Based Compensation - Addi

Stock Based Compensation - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)shares
Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance under the plan	52,961
2014 Omnibus Incentive Plan | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash awards | $	$ 2,982
Vesting period	3 years
2014 Omnibus Incentive Plan | Executive Officer | Beginning January 1, 2015 through December 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%
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 | Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Units granted	163,215
Units vested	4,189
Units forfeited	2,292
Total fair value of units outstanding | $	$ 2,044
Omnibus Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, net | $	$ 6,816
Unrecognized compensation expense, net, weighted average period	2 years 3 months 18 days
Total fair value of restricted stock vested | $	$ 1,947
2009 Omnibus Incentive Plan | Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding	0

Stock Based Compensation - Summ

Stock Based Compensation - Summary of Restricted Stock Activity and Related Information (Detail) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Shares
Beginning Balance | shares	339,140
Granted | shares	297,685
Vested | shares	(136,063)
Forfeited | shares	(2,549)
Ending Balance | shares	498,213
Weighted-Average Grant-Date Fair Value Per Share
Beginning Balance | $ / shares	$ 28.59
Granted | $ / shares	10.30
Vested | $ / shares	35.68
Forfeited | $ / shares	12.94
Ending Balance | $ / shares	$ 15.81

Long-Term Debt and Notes Paya30

Long-Term Debt and Notes Payable - Additional Information (Detail) $ / shares in Units, $ in Thousands	Mar. 02, 2017USD ($)Subsidiary$ / sharesshares	May 31, 2016USD ($)BoardofDirector	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Mar. 10, 2017	Dec. 31, 2016USD ($)
Line of Credit Facility [Line Items]
Long-term debt			$ 47,957			$ 42,404
Repayments of long-term debt			3,250	$ 23,000
Long-term debt, current						13,000
Interest cost			2,233	980
Property, Plant and Equipment
Line of Credit Facility [Line Items]
Interest cost capitalized			0	$ 80
Unsecured Promissory Notes
Line of Credit Facility [Line Items]
Debt instrument, maturity date		Apr. 1, 2019
Debt instrument, interest rate		7.00%
Proceeds from issuance of notes		$ 25,000
Debt instrument, payable number | BoardofDirector		2
New Credit Agreement
Line of Credit Facility [Line Items]
Long-term debt			$ 52,651
New Credit Agreement | Unsecured Promissory Notes
Line of Credit Facility [Line Items]
Debt instrument, payment-in-kind interest rate	8.00%
Debt instrument, payment terms			Interest payments at 8.00% until the lenders under the New Credit Agreement receive two consecutive semi-annual cash interest payments.
Debt instrument, frequency of periodic payment			Semi-annual
Wilks | New Credit Agreement
Line of Credit Facility [Line Items]
Long-term debt	$ 65,000
Debt instrument, maturity date			Dec. 31, 2022
Debt instrument, interest rate	9.00%
Number of operating subsidiaries | Subsidiary	2
Period for payment of Interest on loan in kind	2 years
Debt instrument, payment-in-kind interest rate	11.00%
Notice of intent, period required to provide to exercise available option for interest payment	30 days
Unamortized debt issuance costs			$ 862
Warrants exercise price per share | $ / shares	$ 14.91
Warrants expiration date	Dec. 31, 2022
Percentage of number of shares of common stock currently outstanding	1.00%
Percentage of common stock outstanding owned					9.60%
Proceeds received from issuance of term loan	$ 52,651
Percentage of common stock outstanding would hold upon exercise of warrant to purchase additional shares	11.50%
Fair value of long-term debt	$ 48,780
Fair value of warrant	$ 3,871
Wilks | New Credit Agreement | Maximum
Line of Credit Facility [Line Items]
Warrant entitles to purchase shares of the common stock | shares	523,022,000
Wilks | New Credit Agreement | Minimum
Line of Credit Facility [Line Items]
Number of shares of common stock purchased on prior exercise of warrant | shares	271,414,000
Wilks | New Credit Agreement | Warrant
Line of Credit Facility [Line Items]
Unamortized original issue discount			3,832
Wells Fargo | New Credit Agreement
Line of Credit Facility [Line Items]
Repayments of long-term debt	$ 52,651
Wells Fargo | Amended Credit Agreement
Line of Credit Facility [Line Items]
Long-term debt						55,901
Debt issuance costs			455			497
Long-term debt, current						13,000
Long-term debt, long term						$ 42,901
Line of credit, weighted average interest rate						6.447%
Term Loan Closing to Pay off Wells Fargo | Wilks | New Credit Agreement
Line of Credit Facility [Line Items]
Long-term debt	52,651
Additional Term Loan | Wilks | New Credit Agreement
Line of Credit Facility [Line Items]
Long-term debt	$ 12,349
Standby Letters of Credit | Wells Fargo | Amended Credit Agreement
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity			$ 10,730			$ 11,980

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Jul. 28, 2016
Stockholders Equity Note [Line Items]
Investment subject to foreign currency fluctuations	$ 15,950,000
Cumulative foreign currency translation loss, net of deferred income tax benefit	(32,622,000)		$ (34,326,000)
Income tax (benefit) expense	288,000	$ (12,101,000)
Foreign Currency Exchange Gain (Loss), Net
Stockholders Equity Note [Line Items]
Income tax (benefit) expense	0
ATM Program | Cowen and Company LLC
Stockholders Equity Note [Line Items]
Aggregate offering price authorized				$ 75,000,000
Proceeds from sale of common stock under ATM program gross	46,612,000
Proceeds from sale of common stock under ATM program	45,564,000
Commissions paid	$ 1,048,000
ATM Program | Common Stock | Cowen and Company LLC
Stockholders Equity Note [Line Items]
Shares sold under ATM program	3,405,709
Average price per share	$ 13.69

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017Segment
Segment Reporting [Abstract]
Number of operating segments	2

Schedule of Financial Informati

Schedule of Financial Information for Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenue from external customers	$ 34,670	$ 33,102
Loss before income taxes	(32,156)	(36,785)
Depreciation and amortization	12,430	12,291
Operating Segment | Oilfield Technologies and Services
Segment Reporting Information [Line Items]
Revenue from external customers	29,620	29,409
Loss before income taxes	(31,763)	(36,000)
Depreciation and amortization	12,094	11,853
Operating Segment | Environmental Products and Services
Segment Reporting Information [Line Items]
Revenue from external customers	5,050	3,693
Loss before income taxes	(393)	(785)
Depreciation and amortization	$ 336	$ 438