Stabilis Solutions (SLNG) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 11, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	AETI
Entity Registrant Name	American Electric Technologies Inc
Entity Central Index Key	1,043,186
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,292,753

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 7,109	$ 7,989
Restricted short-term investments	507	507
Accounts receivable-trade, net of allowance of $271 and $225 at March 31, 2016 and December 31, 2015	4,628	6,853
Inventories, net of allowance of $78 and $60 at March 31, 2016 and December 31, 2015	965	1,325
Cost and estimated earnings in excess of billings on uncompleted contracts	4,006	2,302
Prepaid expenses and other current assets	283	324
Total current assets	17,498	19,300
Property, plant and equipment, net	7,848	7,915
Advances to and investments in foreign joint ventures	11,251	11,104
Intangibles	218	218
Other assets	72	49
Total assets	36,887	38,586
Current liabilities:
Revolving line of credit	2,000	1,043
Current portion of long-term note payable	300	300
Accounts payable	3,555	4,031
Accrued payroll and benefits	625	476
Other accrued expenses	486	666
Billings in excess of costs and estimated earnings on uncompleted contracts	2,289	1,629
Other current liabilities	143	210
Total current liabilities	9,398	8,355
Long-term note payable	4,200	4,200
Deferred compensation	294	305
Deferred income taxes	3,058	3,064
Total liabilities	16,950	15,924
Convertible preferred stock:
Redeemable convertible preferred stock, Series A, net of discount of $658 at March 31, 2016 and $671 at December 31, 2015; $0.001 par value, 1,000,000 shares authorized, issued and outstanding at March 31, 2016 and December 31, 2015	4,342	4,329
Stockholders’ equity:
Common stock; $0.001 par value, 50,000,000 shares authorized, 8,436,295 and 8,385,929 shares issued and 8,290,418 and 8,254,001 shares outstanding at March 31, 2016 and December 31, 2015	8	8
Treasury stock, at cost 145,877 shares at March 31, 2016 and 131,928 shares at December 31, 2015	(828)	(792)
Additional paid-in capital	12,202	12,032
Accumulated other comprehensive income	409	310
Retained earnings; including accumulated statutory reserves in equity method investments of $2722 at March 31, 2016 and December 31, 2015	3,804	6,775
Total stockholders’ equity	15,595	18,333
Total liabilities, convertible preferred stock and stockholders’ equity	$ 36,887	$ 38,586

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts receivable-trade, allowance	$ 271	$ 225
Inventories, allowance	78	60
Redeemable convertible preferred stock, Series A, discount	$ 658	$ 671
Redeemable convertible preferred stock, par value	$ 0.001	$ 0.001
Redeemable convertible preferred stock, shares authorized	1,000,000	1,000,000
Redeemable convertible preferred stock, shares issued	1,000,000	1,000,000
Redeemable convertible preferred stock, shares outstanding	1,000,000	1,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	8,436,295	8,385,929
Common stock, shares outstanding	8,290,418	8,254,001
Treasury stock, shares	145,877	131,928
Equity Method Investments
Retained earnings; accumulated statutory reserves in equity method investments	$ 2,722	$ 2,722

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net sales	$ 8,298	$ 15,311
Cost of sales	8,207	13,028
Gross profit	91	2,283
Operating expenses:
Research and development	523	138
Selling and marketing	876	603
General and administrative	1,346	1,267
Total operating expenses	2,745	2,008
Income (loss) from operations	(2,654)	275
Net equity income (loss) from foreign joint ventures’ operations:
Equity income (loss) from foreign joint ventures’ operations	(195)	116
Foreign joint ventures’ operations related expenses	(51)	(98)
Net equity income (loss) from foreign joint ventures’ operations	(246)	18
Income (loss) from operations and net equity income from foreign joint ventures’ operations	(2,900)	293
Other income (expense):
Interest expense and other, net	(39)	(19)
Income (loss) before income taxes	(2,939)	274
Provision for (benefit from) income taxes	(56)
Net income (loss) before dividends on redeemable convertible preferred stock	(2,883)	274
Dividends on redeemable convertible preferred stock	(88)	(87)
Net income (loss) attributable to common stockholders	$ (2,971)	$ 187
Earnings (loss) per common share:
Basic	$ (0.36)	$ 0.02
Diluted	$ (0.36)	$ 0.02
Weighted - average number of common shares outstanding:
Basic	8,263,223	8,206,684
Diluted	8,263,223	8,441,782

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss) before dividends on redeemable convertible preferred stock	$ (2,883)	$ 274
Other comprehensive income:
Foreign currency translation gain (loss), net of deferred income taxes	99	(147)
Total comprehensive income (loss)	$ (2,784)	$ 127

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation gain (loss), deferred income taxes	$ (51)	$ 76

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (2,883)	$ 274
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax provision (benefit)	(56)
Equity income (loss) from foreign joint ventures’ operations	195	(116)
Depreciation and amortization	221	237
Stock based compensation	165	127
Bad debt expense	69	15
Obsolete inventory expense	18	18
Deferred compensation costs	(11)	4
Change in operating assets and liabilities:
Accounts receivable	2,339	(582)
Inventories	343	(377)
Costs and estimated earnings in excess of billings on uncompleted contracts	(1,704)	(641)
Prepaid expenses and other current assets	(99)	(74)
Accounts payable	(485)	473
Billings in excess of costs and estimated earnings on uncompleted contracts	660	191
Accrued liabilities and other current liabilities	(408)	(14)
Net cash provided by (used in) operating activities	(1,636)	(465)
Cash flows from investing activities:
Purchases of property, plant and equipment and other assets	(113)	(307)
Net cash provided by (used in) from investing activities	(113)	(307)
Cash flows from financing activities:
Proceeds from sale of common stock, preferred stock, and warrants	4	8
Treasury stocks purchase	(36)	(70)
Preferred stock cash dividend	(75)	(75)
Proceeds from long-term notes payable		4,000
Advances from revolving credit facility (repayments)	957	(4,000)
Payments on long-term notes payable		(22)
Net cash provided by (used in) financing activities	850	(159)
Effect of exchange rate on cash	19
Net increase (decrease) in cash and cash equivalents	(880)	(931)
Cash and cash equivalents, beginning of period	7,989	3,550
Cash and cash equivalents, end of period	7,109	2,619
Supplemental disclosures of cash flow information:
Interest paid	$ 41	$ 32

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of American Electric Technologies, Inc. and its wholly-owned subsidiaries (“AETI”, “the Company”, “our”, “we”, “us”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and include all adjustments which, in the opinion of management, are necessary for a fair presentation of financial position as of March 31, 2016 and December 31, 2015 and results of operations for the three months ended March 31, 2016 and 2015. All adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The statements should be read in conjunction with the Company’s consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015, which was filed on March 30, 2016. All dollar amounts disclosed in the footnotes are stated in thousands.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings per Common Share	2. Earnings per Common Share Basic earnings per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the three months ended March 31, 2016 and 2015 . Diluted earnings per share is computed by dividing net income (loss) attributable to common stockholders, by the sum of (1) the weighted-average number of shares of common stock outstanding during the period, (2) the dilutive effect of the assumed exercise of convertible instruments and (3) the dilutive effect of the exercise of stock options and other stock units to our common stock. When convertible preferred stocks are assumed converted then dividends are added back to the earnings in the calculation of diluted earnings per share. For the three months ended March 31, 2016, common stock equivalents from convertible instruments, stock options and other stock units have been excluded from the calculation of weighted average diluted shares because all such instruments were anti-dilutive. The following tables set forth the computation of basic and diluted common shares. Three Months Ended March 31, 2016 2015 Weighted average basic shares 8,263,223 8,206,684 Dilutive effect of preferred stock, warrants, stock options and restricted stock units - 235,098 Total weighted average diluted shares 8,263,223 8,441,782

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
Accounting Changes And Error Corrections [Abstract]
Recently Issued Accounting Pronouncements	3. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. Compensation – Stock Compensation, In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplified Income Statement Presentation by Eliminating the Concept of Extraordinary Items. Income statement – Extraordinary and Unusual Items, In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, TM In July 2015, the FASB issued ASU No. 2015-11 Inventory Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU No. 2015-16 Business Combinations Simplifying the Accounting for Measurement-Period Adjustments In November, 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases

Investments in Foreign Joint Ve

Investments in Foreign Joint Ventures	3 Months Ended
	Mar. 31, 2016
Equity Method Investments And Joint Ventures [Abstract]
Investments in Foreign Joint Ventures	4. Investments in Foreign Joint Ventures We have interests in two joint ventures, outside of the United States of America (“U.S.”) which are accounted for using the equity method: — BOMAY Electric Industries Company, Ltd. (“BOMAY”), in which the Company holds a 40% interest, Baoji Oilfield Machinery Co., Ltd. (a subsidiary of China National Petroleum Corporation) holds a 51% interest, and AA Energies, Inc., holds a 9% interest; and, — M&I Electric Far East, Ltd. ("MIEFE”), in which the Company holds a 41% interest, MIEFE’s general manager holds an 8% interest and, Sonepar of France holds a 51% interest. BOMAY was formed in 2006 in China with a term of 12 years. The term of the joint venture may be extended upon agreement of all parties. In such case, the joint venture shall apply for the extension to the relevant Chinese authority six months before expiry of the venture. At this time, AETI has no indication that the joint venture will not be extended beyond 12 years. Sales to joint ventures, made on an arm’s length basis, totaled $0.04 million and $0.15 million for the three months ended March 31, 2016 and 2015. Summary (unaudited) financial information of our foreign joint ventures in U.S. dollars was as follows at March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 (in thousands): BOMAY MIEFE 2016 2015 2016 2015 Assets: Total current assets $ 67,466 $ 68,151 $ 1,520 $ 2,365 Total non-current assets 4,096 4,131 71 70 Total assets $ 71,562 $ 72,282 $ 1,591 $ 2,435 Liabilities and equity: Total liabilities $ 43,254 $ 44,415 $ 1,758 $ 1,930 Total joint ventures’ equity 28,308 27,867 (167 ) 505 Total liabilities and equity $ 71,562 $ 72,282 $ 1,591 $ 2,435 Three Months Ended March 31, BOMAY MIEFE 2016 2015 2016 2015 Revenue $ 6,987 $ 8,802 $ 662 $ 1,734 Gross Profit $ 1,144 $ 1,714 $ 171 $ 183 Earnings $ 231 $ 479 $ (669 ) $ (184 ) The following is a summary of activity in investments in foreign joint ventures for the three months ended March 31, 2016 (unaudited): March 31, 2016 BOMAY** MIEFE TOTAL (in thousands) Investments in foreign joint ventures: Balance at December 31, 2015 $ 10,896 $ 208 $ 11,104 Equity in earnings (loss) in 2016 79 (3 ) 76 Foreign currency translation adjustment 71 - 71 Balance at March 31, 2016 $ 11,046 $ 205 $ 11,251 Components of investments in foreign joint ventures: Investment in joint ventures $ 2,033 $ 15 $ 2,048 Undistributed earnings 8,177 (15 ) 8,162 Foreign currency translation 836 205 1,041 Investments, end of period $ 11,046 $ 205 $ 11,251 ** Accumulated statutory reserves of $2.72 million in equity method investments at March 31, 2016 and December 31, 2015, respectively, are included in AETI’s consolidated retained earnings. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Under the equity method of accounting, the Company’s share of the joint ventures’ operations’ earnings or loss is recognized in the condensed consolidated statement of operations as equity income (loss) from foreign joint ventures’ operations. Joint venture income increases the carrying value of the joint venture investment and joint venture losses, as well as dividends received from the joint ventures, reduce the carrying value of the investment. During the three months ended March 31, 2016, the Company recognized losses from its investment in MIEFE of $0.27 million. Losses were applied to the investment balance to the extent of the Company’s initial investment, with the remaining $0.27 million accrued in other current liabilities to reflect the Company’s intention to fund their share of losses. The Company reviews its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable or the inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	5. Notes Payable Revolving Credit Agreement On December 29, 2015, the Company entered into a Loan Agreement (the “Loan Agreement”) with Frost Bank (“Bank”). The Loan Agreement provides two separate revolving credit facilities to the Company. The first facility (“Facility A”) provides the Company with a $4.00 million revolving line of credit with a two-year term maturing December 29, 2017, subject to a maximum loan amount (the “Borrowing Base”) based on a formula related to the value of certain of the Company’s accounts, inventories and equipment totaling $3.46 million at March 31, 2016. Under Facility A, the Company may borrow, repay and reborrow, up to the Borrowing Base. Facility A also allows the issuance of standby letters of credit. As of March 31, 2016, we had no letters of credit outstanding. At March 31, 2016, the outstanding balance of Facility A is $2.00 million. The second facility (“Facility B”) provides the Company with a $4.50 million declining revolving line of credit. The Company may borrow, repay and reborrow from the line. The amount available to borrow under Facility B declines from the initial $4.50 million by $0.15 million each six months. Facility B’s maturity date is December 29, 2020 when all outstanding principal and unpaid accrued interest is due and payable of March 31, 2016, the outstanding balance is $4.50 million. Under the Loan Agreement, the interest rate on both facilities is LIBOR (0.63% at March 31, 2016) plus 2.75% per year. The Loan agreement also provides for usual and customary covenants and restrictions including that the borrower must maintain a fixed charge coverage ratio of no less than 1.25 to 1.00, and a ratio of consolidated total liabilities to consolidated net worth not to exceed 1.25. As of March 31, 2016, the Company was not in compliance with the fixed charge coverage ratio but subsequently obtained a waiver from the Bank, whereby, the Bank waived this non-compliance. As a condition to obtaining the waiver, the Company has agreed to maintain a minimum deposit balance of $1.00 million with the Bank, limit borrowings under the revolving line of credit to $1.00 million until such time the Company is in compliance and the interest rate for funds drawn on the line of credit will increase to LIBOR plus 4.00% per year. The Company had a total of $6.50 million of borrowings outstanding under the Bank Loan Agreement at March 31, 2016 and $5.54 million at December 31, 2015.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	6. Inventories Inventories consisted of the following at March 31, 2016 (unaudited) and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 (in thousands) Raw materials $ 636 $ 594 Work-in-process 407 791 1,043 1,385 Less: allowance (78 ) (60 ) Total inventories $ 965 $ 1,325

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The tax benefit for the three months ended March 31, 2016 reflect a 34% U.S. tax rate related to the equity in earnings from foreign joint ventures’ operations, net of dividends received resulting in an effective rate of 2% benefit. The tax provision for the three months ending March 31, 2015 reflects a 34% U.S. tax rate related to the equity in foreign joint ventures’ operations, net of dividends received, for an effective rate of 0%.

Fair Value of Financial Instrum

Fair Value of Financial Instruments and Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments and Fair Value Measurements	8. Fair Value of Financial Instruments and Fair Value Measurements The carrying amounts of cash and cash equivalents, trade accounts receivable and accounts payable approximate fair value as of March 31, 2016 and December 31, 2015 because of the relatively short maturity of these instruments. The carrying amount of our long-term note payable approximates the fair value as the interest rate on the note is based on a market rate.

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Redeemable Convertible Preferred Stock	9. Redeemable Convertible Preferred Stock In conjunction with the issuance of the Redeemable Convertible Preferred Stock, Series A in May 2012, warrants were issued for common stock. The initial value allocated to the warrants was recognized as a discount on the Series A Convertible Preferred Stock, with a corresponding charge to additional paid-in capital. The discount related to the warrants is accreted to retained earnings through the scheduled redemption date of the redeemable Series A Convertible Preferred Stock. Discount accretion for the three months ended March 31, 2016 and 2015 totaled $0.01 million and $0.01 million. The Series A Preferred Stock accrues cumulative dividends at a rate of 6% per annum payable quarterly in cash or with our Common Stock, at the option of the Company, based on the then current liquidation value of the Preferred Stock which is currently $5.00 per share. Quarterly dividends not paid in cash or Common Stock accumulate without interest and must be fully paid before any dividend or other distribution can be paid on or declared and set apart for the Common Stock or conversion of the Preferred Stock to Common Stock.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Computation of Basic and Diluted Common Shares	The following tables set forth the computation of basic and diluted common shares. Three Months Ended March 31, 2016 2015 Weighted average basic shares 8,263,223 8,206,684 Dilutive effect of preferred stock, warrants, stock options and restricted stock units - 235,098 Total weighted average diluted shares 8,263,223 8,441,782

Investments in Foreign Joint 18

Investments in Foreign Joint Ventures (Tables)	3 Months Ended
	Mar. 31, 2016
Equity Method Investments And Joint Ventures [Abstract]
Schedule of Financial Information of Foreign Joint Ventures	Summary (unaudited) financial information of our foreign joint ventures in U.S. dollars was as follows at March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 (in thousands): BOMAY MIEFE 2016 2015 2016 2015 Assets: Total current assets $ 67,466 $ 68,151 $ 1,520 $ 2,365 Total non-current assets 4,096 4,131 71 70 Total assets $ 71,562 $ 72,282 $ 1,591 $ 2,435 Liabilities and equity: Total liabilities $ 43,254 $ 44,415 $ 1,758 $ 1,930 Total joint ventures’ equity 28,308 27,867 (167 ) 505 Total liabilities and equity $ 71,562 $ 72,282 $ 1,591 $ 2,435 Three Months Ended March 31, BOMAY MIEFE 2016 2015 2016 2015 Revenue $ 6,987 $ 8,802 $ 662 $ 1,734 Gross Profit $ 1,144 $ 1,714 $ 171 $ 183 Earnings $ 231 $ 479 $ (669 ) $ (184 )
Schedule of Activity in Investment in Foreign Joint Ventures	The following is a summary of activity in investments in foreign joint ventures for the three months ended March 31, 2016 (unaudited): March 31, 2016 BOMAY** MIEFE TOTAL (in thousands) Investments in foreign joint ventures: Balance at December 31, 2015 $ 10,896 $ 208 $ 11,104 Equity in earnings (loss) in 2016 79 (3 ) 76 Foreign currency translation adjustment 71 - 71 Balance at March 31, 2016 $ 11,046 $ 205 $ 11,251 Components of investments in foreign joint ventures: Investment in joint ventures $ 2,033 $ 15 $ 2,048 Undistributed earnings 8,177 (15 ) 8,162 Foreign currency translation 836 205 1,041 Investments, end of period $ 11,046 $ 205 $ 11,251 ** Accumulated statutory reserves of $2.72 million in equity method investments at March 31, 2016 and December 31, 2015, respectively, are included in AETI’s consolidated retained earnings. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following at March 31, 2016 (unaudited) and December 31, 2015 (in thousands): March 31, 2016 December 31, 2015 (in thousands) Raw materials $ 636 $ 594 Work-in-process 407 791 1,043 1,385 Less: allowance (78 ) (60 ) Total inventories $ 965 $ 1,325

Earnings Per Common Share (Deta

Earnings Per Common Share (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Weighted average basic shares	8,263,223	8,206,684
Dilutive effect of preferred stock, warrants, stock options and restricted stock units		235,098
Total weighted average diluted shares	8,263,223	8,441,782

Investments in Foreign Joint 21

Investments in Foreign Joint Ventures - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Joint_Ventures	Mar. 31, 2015USD ($)
Schedule Of Equity Method Investments [Line Items]
Interest in joint venture foreign | Joint_Ventures	2
Net sales	$ 8,298	$ 15,311
Affiliated Entity
Schedule Of Equity Method Investments [Line Items]
Net sales	$ 40	$ 150
BOMAY
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	40.00%
Joint venture term	12 years
Baoji Oilfield Machinery Co. Ltd.
Schedule Of Equity Method Investments [Line Items]
Interest in Joint Venture	51.00%
AA Energies, Inc.
Schedule Of Equity Method Investments [Line Items]
Interest in Joint Venture	9.00%
MIEFE
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	41.00%
Losses recognized from investment	$ 270
MIEFE | Accrued in Other Current Liabilities
Schedule Of Equity Method Investments [Line Items]
Remaining investment from joint venture	$ 270
MIEFE's general manager
Schedule Of Equity Method Investments [Line Items]
Interest in Joint Venture	8.00%
Sonepar of France
Schedule Of Equity Method Investments [Line Items]
Interest in Joint Venture	51.00%

Investments in Foreign Joint 22

Investments in Foreign Joint Ventures - Schedule of Financial Information of Foreign Joint Ventures (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
BOMAY
Assets:
Total current assets	$ 67,466		$ 68,151
Total non-current assets	4,096		4,131
Total assets	71,562		72,282
Liabilities and equity:
Total liabilities	43,254		44,415
Total joint ventures’ equity	28,308		27,867
Total liabilities and equity	71,562		72,282
Revenue	6,987	$ 8,802
Gross Profit	1,144	1,714
Earnings	231	479
MIEFE
Assets:
Total current assets	1,520		2,365
Total non-current assets	71		70
Total assets	1,591		2,435
Liabilities and equity:
Total liabilities	1,758		1,930
Total joint ventures’ equity	(167)		505
Total liabilities and equity	1,591		$ 2,435
Revenue	662	1,734
Gross Profit	171	183
Earnings	$ (669)	$ (184)

Investments in Foreign Joint 23

Investments in Foreign Joint Ventures - Schedule of Activity in Investment in Foreign Joint Ventures (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2016
Investments in foreign joint ventures:
Balance at December 31, 2015	$ 11,104
Equity in earnings (loss) in 2016	76
Foreign currency translation adjustment	71
Balance at March 31, 2016	11,251
Components of investments in foreign joint ventures:
Investment in joint ventures		$ 2,048
Undistributed earnings		8,162
Foreign currency translation		1,041
Investments, end of period	11,251	11,251
BOMAY
Investments in foreign joint ventures:
Balance at December 31, 2015	10,896
Equity in earnings (loss) in 2016	79
Foreign currency translation adjustment	71
Balance at March 31, 2016	11,046
Components of investments in foreign joint ventures:
Investment in joint ventures		2,033
Undistributed earnings		8,177
Foreign currency translation		836
Investments, end of period	10,896	11,046
MIEFE
Investments in foreign joint ventures:
Balance at December 31, 2015	208
Equity in earnings (loss) in 2016	(3)
Balance at March 31, 2016	205
Components of investments in foreign joint ventures:
Investment in joint ventures		15
Undistributed earnings		(15)
Foreign currency translation		205
Investments, end of period	$ 208	$ 205

Investments in Foreign Joint 24

Investments in Foreign Joint Ventures - Schedule of Activity in Investment in Foreign Joint Ventures (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Equity Method Investments
Schedule Of Equity Method Investments [Line Items]
Accumulated statutory reserves in equity method investments	$ 2,722	$ 2,722

Notes Payable - Additional Info

Notes Payable - Additional Information (Detail)	Dec. 29, 2015USD ($)CreditFacility	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Revolving line of credit		$ 2,000,000	$ 1,043,000
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, agreement date		Dec. 29, 2015
Number of revolving credit facilities | CreditFacility	2
Line of credit facility, maximum borrowing capacity		$ 1,000,000
Amount borrowed under revolving credit facility		$ 6,500,000	$ 5,540,000
Credit facility's interest rate, Description		interest rate on both facilities is LIBOR (0.63% at March 31, 2016) plus 2.75% per year
Leverage test of total liabilities to total net worth	1.25
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Fixed charge coverage ratio	125.00%
Waiver condition, deposit balance		$ 1,000,000
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument variable interest rate		0.63%
Credit facility's interest rate	2.75%	4.00%
Facility A
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 4,000,000
Line of credit term	2 years
Line of credit facility maximum borrowing capacity subject to value of certain accounts, inventories and equipment		$ 3,460,000
Revolving credit agreement maturity date	Dec. 29, 2017
Revolving line of credit		2,000,000
Amount borrowed under revolving credit facility		0
Facility B
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 4,500,000
Revolving credit agreement maturity date	Dec. 29, 2020
Amount borrowed under revolving credit facility	$ 4,500,000	$ 4,500,000
Line of credit facility, borrowing capacity, description		The amount available to borrow under Facility B declines from the initial $4.50 million by $0.15 million each six months.
Revolving line of credit decline term		6 months
Decline in revolving line of credit	$ 150,000

Inventories - Inventories (Deta

Inventories - Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 636	$ 594
Work-in-process	407	791
Inventory, Gross	1,043	1,385
Less: allowance	(78)	(60)
Total inventories	$ 965	$ 1,325

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
US tax rate	34.00%	34.00%
Effective tax rate	2.00%	0.00%

Redeemable Convertible Prefer28

Redeemable Convertible Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Class Of Stock [Line Items]
Accretion amount	$ 10	$ 10
Series A Convertible Preferred Stock
Class Of Stock [Line Items]
Cumulative dividends at a rate	6.00%
Redeemable convertible preferred stock, liquidation preference per share	$ 5