Natural Gas Services (NGS) 10-Q 7 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 03, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'NATURAL GAS SERVICES GROUP INC	'
Entity Central Index Key	'0001084991	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	12,519,405

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current Assets:	'	'
Cash and cash equivalents	$5,073	$24,443
Trade accounts receivable, net of allowance for doubtful accounts of $497 and $436, respectively	9,512	6,750
Inventory, net	31,350	26,832
Prepaid income taxes	5,110	2,281
Prepaid expenses and other	734	339
Total current assets	51,779	60,645
Rental equipment, net of accumulated depreciation of $100,981 and $86,533, respectively	207,098	176,420
Property and equipment, net of accumulated depreciation of $10,466 and $9,692 respectively	7,319	7,429
Goodwill	10,039	10,039
Intangibles, net of accumulated amortization of $2,285 and $2,191, respectively	1,933	2,027
Other assets	40	29
Total assets	278,208	256,589
Current Liabilities:	'	'
Line of credit	417	577
Accounts payable	5,662	3,904
Accrued liabilities	7,714	6,487
Current income tax liability	5,226	350
Deferred income	2,013	873
Total current liabilities	21,032	12,191
Deferred income tax liability	51,238	51,464
Other long-term liabilities	164	197
Total liabilities	72,434	63,852
Commitments and contingencies (Note 7)	'	'
Stockholders’ Equity:	'	'
Preferred stock, 5,000 shares authorized, no shares issued or outstanding	0	0
Common stock, 30,000 shares authorized, par value $0.01; 12,464 and 12,366 shares issued and outstanding, respectively	125	123
Additional paid-in capital	94,255	91,344
Retained earnings	111,394	101,270
Total stockholders' equity	205,774	192,737
Total liabilities and stockholders' equity	$278,208	$256,589

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Current Assets:	'	'
Allowance for doubtful accounts	$497	$436
Noncurrent Assets:	'	'
Accumulated depreciation, rental equipment	100,981	86,533
Accumulated depreciation, property and equipment	10,466	9,692
Accumulated amortization, intangibles	$2,285	$2,191
Stockholders' Equity Attributable to Parent [Abstract]	'	'
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in USD per share)	$0.01	$0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	12,464,000	12,366,000
Common stock, shares outstanding	12,464,000	12,366,000

Condensed_Income_Statements

Condensed Income Statements (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue:	'	'	'	'
Rental income	$20,177	$17,805	$58,431	$50,533
Sales, net	5,218	3,893	10,831	15,057
Service and maintenance income	204	167	611	516
Total revenue	25,599	21,865	69,873	66,106
Operating costs and expenses:	'	'	'	'
Cost of rentals, exclusive of depreciation stated separately below	8,110	7,449	23,815	20,519
Cost of sales, exclusive of depreciation stated separately below	3,493	2,454	6,826	8,935
Cost of service and maintenance, exclusive of depreciation and amortization stated separately below	101	80	269	233
Selling, general, and administrative expense	2,527	2,142	7,860	6,023
Depreciation and amortization	5,528	4,652	15,816	13,326
Total operating costs and expenses	19,759	16,777	54,586	49,036
Operating income	5,840	5,088	15,287	17,070
Other income (expense):	'	'	'	'
Interest expense	-4	-3	-9	-45
Other income	131	125	183	393
Total other income, net	127	122	174	348
Income before provision for income taxes	5,967	5,210	15,461	17,418
Provision for income taxes	2,084	1,816	5,337	6,185
Net income	$3,883	$3,394	$10,124	$11,233
Earnings per share:	'	'	'	'
Basic (in USD per share)	$0.31	$0.28	$0.81	$0.91
Diluted (in USD per share)	$0.30	$0.27	$0.80	$0.90
Weighted average shares outstanding:	'	'	'	'
Basic (in shares)	12,461	12,339	12,424	12,313
Diluted (in shares)	12,740	12,600	12,728	12,504

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$10,124	$11,233
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	15,816	13,326
Deferred income taxes	-226	5,736
Stock based compensation	2,438	1,134
Inventory allowance	395	13
Gain on disposal of assets	-159	0
Gain on extinguishment of liability	0	-223
Changes in current assets and liabilities:	'	'
Trade accounts receivables	-2,762	1,314
Inventory	-4,895	-1,049
Prepaid expenses	-3,024	-1,937
Accounts payable and accrued liabilities	2,785	-735
Current income tax liability	5,290	409
Deferred income	1,140	-824
Other	-11	0
Tax benefit from equity compensation	-414	0
NET CASH PROVIDED BY OPERATING ACTIVITIES	26,497	28,397
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchase of property and equipment	-46,388	-29,175
Proceeds from sale of property and equipment	239	0
NET CASH USED IN INVESTING ACTIVITIES	-46,149	-29,175
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Repayments from other long-term liabilities, net	-33	-73
Repayments of line of credit	-160	-150
Proceeds from exercise of stock options	61	642
Tax benefit from equity compensation	414	0
NET CASH PROVIDED BY FINANCING ACTIVITIES	282	419
NET CHANGE IN CASH AND CASH EQUIVALENTS	-19,370	-359
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	24,443	28,086
CASH AND CASH EQUIVALENTS AT END OF PERIOD	5,073	27,727
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:	'	'
Interest paid	9	45
Income taxes paid	4,968	2,036
NON-CASH TRANSACTIONS	'	'
Transfer of rental equipment to inventory	$53	$207

Basis_of_Presentation_and_Summ

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Basis of Presentation and Summary of Significant Accounting Policies	'
	Basis of Presentation and Summary of Significant Accounting Policies
	These notes apply to the unaudited condensed financial statements of Natural Gas Services Group, Inc. a Colorado corporation (the "Company", “NGSG”, "Natural Gas Services Group", "we" or "our").
	The accompanying unaudited condensed financial statements include all adjustments, consisting of only normal recurring adjustments, which are necessary to make our financial position at September 30, 2014 and the results of our operations for the three and nine months ended September 30, 2014 and 2013 not misleading.  As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying condensed financial statements do not include all disclosures normally required by generally accepted accounting principles in the United States of America (GAAP).  These financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 on file with the SEC.  In our opinion, the condensed financial statements are a fair presentation of the financial position, results of operations and cash flows for the periods presented.
	The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2014.
	Revenue Recognition
	Revenue from the sales of custom and fabricated compressors, and flare systems is recognized upon shipment of the equipment to customers or when all conditions have been met and title is transferred to the customer. Exchange and rebuild compressor revenue is recognized when both the replacement compressor has been delivered and the rebuild assessment has been completed. Revenue from compressor services is recognized upon providing services to the customer. Maintenance agreement revenue is recognized as services are rendered. Rental revenue is recognized over the terms of the respective rental agreements based upon the classification of the rental agreement. Deferred income represents payments received before a product is shipped.  Revenue from the sale of rental units is included in sales revenue when equipment is shipped or title is transferred to the customer.
	Fair Value of Financial Instruments
	Our financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and our line of credit. Pursuant to ASC 820 (Accounting Standards Codification), the fair value of our cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their fair values because of their nature and relatively short maturity dates or durations.
	Recently Issued Accounting Pronouncements
	On May 28, 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), as part of a joint project with the International Accounting Standards Board (IASB)
	to clarify revenue-recognizing principles and develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU No. 2014-09 finalizes Proposed ASU Nos. 1820-100, 2011-230 and 2011-250 and is expected, among other things, to remove inconsistencies and weaknesses in revenue requirements and improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. In particular, the amendments in this ASU will be added to the FASB Accounting Standards Codification (FASB ASC) as Topic 606, Revenue from Contracts with Customers, and will supersede the revenue recognition requirements in FASB ASC 605, Revenue Recognition, as well as some cost guidance in FASB ASC Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. For public entities, the amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is prohibited. Additionally, an entity should apply the amendments either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects the latter, transition method, then it must also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes. The new standard will be effective during our first quarter ending March 31, 2017. We are currently evaluating the new standard to determine which reporting option allows us to report the most meaningful information and are still evaluating the potential impact this new standard may have on our financial statements.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-Based Compensation	'
	Stock-Based Compensation
	Stock Options:
	A summary of option activity under our 1998 Stock Option Plan as of December 31, 2013, and changes during the nine months ended September 30, 2014 is presented below.
		Number		Weighted Average				Weighted		Aggregate
		of		Exercise				Average		Intrinsic
		Stock Options		Price				Remaining		Value
								Contractual Life (years)		(in thousands)
	Outstanding, December 31, 2013	378,852		$	15.61			5.23		$	4,533
	Granted	55,000		30.68				—		—
	Exercised	(3,500	)	17.13				—		48
	Canceled/Forfeited	(2,083	)	18.15				—		24
	Outstanding, September 30, 2014	428,269		$	17.52			5.1		$	3,170
	Exercisable, September 30, 2014	340,435		$	15.34			4.08		$	2,973
	The following table summarizes information about our stock options outstanding at September 30, 2014:
		Options Outstanding							Options Exercisable
	Range of Exercise Prices	Shares		Weighted		Weighted			Shares			Weighted
				Average		Average						Average
				Remaining		Exercise						Exercise
				Contractual		Price						Price
				Life (years)
	$0.01-9.43	71,352		2.22		$	8.72		71,352			$	8.72
	$9.44-15.60	70,000		4.31		12.51			64,166			12.3
	$15.61-33.36	286,917		6.01		20.93			204,917			18.59
		428,269		5.1		$	17.52		340,435			$	15.34
	The summary of the status of our unvested stock options as of December 31, 2013 and changes during the nine months ended September 30, 2014 is presented below.
		Shares		Weighted Average
				Grant Date Fair Value
	Unvested stock options:
	Unvested at December 31, 2013	63,082		$	9.87
	Granted	55,000		16.91
	Vested	(28,915	)	9.8
	Canceled/Forfeited	(1,333	)	9.92
	Unvested at September 30, 2014	87,834		$	14.3
	As of September 30, 2014, there was $873,283 of unrecognized compensation cost related to unvested options.  Such cost is expected to be recognized over a weighted-average period of 2.2 years. Total compensation expense for stock options was $297,522 and $122,702 for the nine months ended September 30, 2014 and 2013, respectively.
	Restricted Stock:
	In accordance with the Company's employment agreement with Stephen Taylor, the Company's Chief Executive Officer, the Compensation Committee reviewed his performance in determining the issuance of restricted common stock. Based on this review which included consideration of the Company's 2013 performance, Mr. Taylor, was awarded 49,420 restricted shares on January 23, 2014, which vest one year from the date of grant. On March 20, 2014, the Compensation Committee awarded 15,000 shares of restricted common stock to each of G. Larry Lawrence, our CFO, and James Hazlett our Vice President of Technical Services, subject to the approval at our June 2014 annual meeting of shareholders of a proposal to increase the number of shares reserved for issuance under our 2009 restricted Stock\Unit Plan. As the proposal was approved by shareholders at the 2014 annual meeting, we issued the restricted shares to Messrs. Hazlett and Lawrence which vest one year from the grant date. We also awarded and issued 13,152 shares of restricted common stock to our Board of Directors as partial payment for 2014 Directors' fees. The restricted stock issued to our Directors vests over one year, in quarterly installments, beginning March 31, 2015. Total compensation expense related to restricted stock awards was $2,140,233 and $1,011,727 for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, there was a total of $1,282,724 of unrecognized compensation expenses related to these shares which is expected to be recognized over the next fifteen months.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2014
Inventory Disclosure [Abstract]	'
Inventory	'
	Inventory
	Our inventory, net of allowance for obsolescence of $523,000 and $128,000 at September 30, 2014 and December 31, 2013, respectively, consisted of the following amounts:
		September 30, 2014		December 31, 2013
		(in thousands)
	Raw materials	$	23,700	$	20,524
	Work in process	7,650		6,308
		$	31,350	$	26,832
	During the nine months ended September 30, 2014 and 2013, there were no write offs of obsolete inventory against the allowance for obsolescence.

Credit_Facility

Credit Facility	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Credit Facility	'
	Credit Facility
	We have a senior secured revolving credit agreement with JP Morgan Chase Bank, N.A (the "Amended Credit Agreement") aggregate commitment $30 million, subject to collateral availability. We also have a right to request from the lender, on an uncommitted basis, an increase of up to $20 million on the aggregate commitment (which could potentially increase the commitment amount to $50 million).
	Borrowing Base. At any time before the maturity of the Amended Credit Agreement, we may draw, repay and re-borrow amounts available under the borrowing base up to the maximum aggregate availability discussed above. Generally, the borrowing base equals the sum of (a) 80% of our eligible accounts receivable plus (b) 50% of the book value of our eligible general inventory (not to exceed 50% of the commitment amount at the time) plus (c) 75% of the book value of our eligible equipment inventory.  JPMorgan Chase Bank (the “Lender”) may adjust the borrowing base components if material deviations in the collateral are discovered in future audits of the collateral. We had $29.5 million borrowing base availability at September 30, 2014 under the terms of our Amended Credit Agreement.
	Interest and Fees.  Under the terms of the Amended Credit Agreement, we have the option of selecting the applicable variable rate for each revolving loan, or portion thereof, of either (a) LIBOR multiplied by the Statutory Reserve Rate (as defined in the Amended Credit Agreement), with respect to this rate, for Eurocurrency funding, plus the Applicable Margin (“LIBOR-based”), or (b) CB Floating Rate, which is the Lender's Prime Rate less the Applicable Margin; provided, however, that no more than three LIBOR-based borrowings under the agreement may be outstanding at any one time. For purposes of the LIBOR-based interest rate, the Applicable Margin is 1.25%. For purposes of the CB Floating Rate, the Applicable Margin is 1.50%. For the nine month period ended September 30, 2014, our weighted average interest rate was 1.40%.
	Accrued interest is payable monthly on outstanding principal amounts, provided that accrued interest on LIBOR-based loans is payable at the end of each interest period, but in no event less frequently than quarterly. In addition, fees and expenses are payable in connection with our requests for letters of credit (generally equal to the Applicable Margin for LIBOR-related borrowings multiplied by the face amount of the requested letter of credit) and administrative and legal costs.
	Maturity . The maturity date of the Amended Credit Agreement is December 31, 2014, at which time all amounts borrowed under the agreement will be due and outstanding letters of credit must be cash collateralized. The agreement may be terminated early upon our request or the occurrence of an event of default.
	Security. The obligations under the Amended Credit Agreement are secured by a first priority lien on all of our inventory and accounts and leases receivables, along with a first priority lien on a variable number of our leased compressor equipment the book value of which must be maintained at a minimum of 2.00 to 1.00 commitment coverage ratio (such ratio being equal to (i) the amount of the borrowing base as of such date to (ii) the amount of the commitment as of such date.)
	Covenants. The Amended Credit Agreement contains customary representations and warranties, as well as covenants which, among other things, limit our ability to incur additional indebtedness and liens; enter into transactions with affiliates; make acquisitions in excess of certain amounts; pay dividends; redeem or repurchase capital stock or senior notes; make investments or loans; make negative pledges; consolidate, merge or effect asset sales; or change the nature of our business. In addition, we also have certain financial covenants that require us to maintain on a consolidated basis a leverage ratio less than or equal to 2.50 to 1.00 as of the last day of each fiscal quarter.
	Events of Default and Acceleration. The Amended Credit Agreement contains customary events of default for credit facilities of this size and type, and includes, without limitation, payment defaults; defaults in performance of covenants or other agreements contained in the loan documents; inaccuracies in representations and warranties; certain defaults, termination events or similar events; certain defaults with respect to any other Company indebtedness in excess of $50,000; certain bankruptcy or insolvency events; the rendering of certain judgments in excess of $150,000; certain ERISA events; certain change in control events and the defectiveness of any liens under the secured revolving credit facility. Obligations under the Amended Credit Agreement may be accelerated upon the occurrence of an event of default.
	As of September 30, 2014, we were in compliance with all covenants in our Amended Credit Agreement.  A default under our Credit Agreement could trigger the acceleration of our bank debt so that it is immediately due and payable.  Such default would likely limit our ability to access other credit. At September 30, 2014 and December 31, 2013, our outstanding balance on the line of credit was $417,000 and $577,000, respectively.

Earnings_per_Share

Earnings per Share	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Earnings per Share	'
	Earnings per Share
	The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation(in thousands, except per share data).
		Three months ended				Nine months ended
		September 30,				September 30,
		2014		2013		2014		2013
	Numerator:
	Net income	$	3,883	$	3,394	$	10,124	$	11,233
	Denominator for basic net income per common share:
	Weighted average common shares outstanding	12,461		12,339		12,424		12,313
	Denominator for diluted net income per share:
	Weighted average common shares outstanding	12,461		12,339		12,424		12,313
	Dilutive effect of stock options and restricted stock	279		261		304		191
	Diluted weighted average shares	12,740		12,600		12,728		12,504
	Earnings per common share:
	Basic	$	0.31	$	0.28	$	0.81	$	0.91
	Diluted	$	0.3	$	0.27	$	0.8	$	0.9

Segment_Information

Segment Information	9 Months Ended
	Sep. 30, 2014
Segment Reporting [Abstract]	'
Segment Information	'
	Segment Information
	ASC 280-10-50, “Operating Segments”, defines the characteristics of an operating segment as a) being engaged in business activity from which it may earn revenue and incur expenses, b) being reviewed by the company's chief operating decision maker (CODM) for decisions about resources to be allocated and to assess its performance and c) having discrete financial information.  Although we indeed look at our product lines to analyze the nature of our revenue, other financial information, such as certain costs and expenses, net income and EBITDA are not captured or analyzed by these categories.   Therefore discrete financial information is not available by product line and our CODM does not make resource allocation decisions or assess the performance of the business based on these categories, but rather in the aggregate. Based on this, Management believes that it operates in one business segment.
	In their analysis of product lines as potential operating segments, Management also considered ASC 280-10-50-11, “Aggregation Criteria”, which allows for the aggregation of operating segments if the segments have similar economic characteristics and if the segments are similar in each of the following areas:
	•	The nature of the products and services;
	•	The nature of the production processes;
	•	The type or class of customer for their products and services;
	•	The methods used to distribute their products or provide their services; and
	•	The nature of the regulatory environment, if applicable.
	We are engaged in the business of designing and manufacturing compressors and flares. Our compressors and flares are sold and rented to our customers. In addition, we provide service and maintenance on compressors in our fleet and to third parties. These business activities are similar in all geographic areas.  Our manufacturing process is essentially the same for the entire Company and is performed in-house at our facilities in Midland, Texas and Tulsa, Oklahoma.  Our customers primarily consist of entities in the business of producing natural gas and crude oil.  The maintenance and service of our products is consistent across the entire Company and is performed via an internal fleet of vehicles.  The regulatory environment is similar in every jurisdiction in that the most impacting regulations and practices are the result of federal energy policy.  In addition, the economic characteristics of each customer arrangement are similar in that we maintain policies at the corporate level.
	For the three months ended September 30, 2014 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	20,177	$	5,218	$	204	$	—		$	25,599
	Operating costs and expenses	8,110		3,493		101		8,055			19,759
	Other income, net	—		—		—		127			127
	Income before provision for income taxes	$	12,067	$	1,725	$	103	$	(7,928	)	$	5,967
	For the three months ended September 30, 2013 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	17,805	$	3,893	$	167	$	—		$	21,865
	Operating costs and expenses	7,449		2,454		80		6,794			16,777
	Other income, net	—		—		—		122			122
	Income before provision for  income taxes	$	10,356	$	1,439	$	87	$	(6,672	)	$	5,210
	For the nine months ended September 30, 2014 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	58,431	$	10,831	$	611	—			$	69,873
	Operating costs and expenses	23,815		6,826		269		23,676			54,586
	Other income, net	—		—		—		174			174
	Income before provision for income taxes	$	34,616	$	4,005	$	342	$	(23,502	)	$	15,461
	For the nine months ended September, 2013 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	50,533	$	15,057	$	516	$	—		$	66,106
	Operating costs and expenses	20,519		8,935		233		19,349			49,036
	Other income, net	—		—		—		348			348
	Income before provision for income taxes	$	30,014	$	6,122	$	283	$	(19,001	)	$	17,418

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	From time to time, we are a party to various legal proceedings in the ordinary course of our business.  While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from these actions will not have a material adverse effect on our financial position, results of operations or cash flow.  We are not currently a party to any material legal proceedings, and we are not aware of any other threatened material litigation.

Basis_of_Presentation_and_Summ1

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Revenue Recognition	'
	Revenue Recognition
	Revenue from the sales of custom and fabricated compressors, and flare systems is recognized upon shipment of the equipment to customers or when all conditions have been met and title is transferred to the customer. Exchange and rebuild compressor revenue is recognized when both the replacement compressor has been delivered and the rebuild assessment has been completed. Revenue from compressor services is recognized upon providing services to the customer. Maintenance agreement revenue is recognized as services are rendered. Rental revenue is recognized over the terms of the respective rental agreements based upon the classification of the rental agreement. Deferred income represents payments received before a product is shipped.  Revenue from the sale of rental units is included in sales revenue when equipment is shipped or title is transferred to the customer.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	Our financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and our line of credit. Pursuant to ASC 820 (Accounting Standards Codification), the fair value of our cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their fair values because of their nature and relatively short maturity dates or durations.
Recently Issued Accounting Pronouncements	'
	Recently Issued Accounting Pronouncements
	On May 28, 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), as part of a joint project with the International Accounting Standards Board (IASB)
	to clarify revenue-recognizing principles and develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU No. 2014-09 finalizes Proposed ASU Nos. 1820-100, 2011-230 and 2011-250 and is expected, among other things, to remove inconsistencies and weaknesses in revenue requirements and improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. In particular, the amendments in this ASU will be added to the FASB Accounting Standards Codification (FASB ASC) as Topic 606, Revenue from Contracts with Customers, and will supersede the revenue recognition requirements in FASB ASC 605, Revenue Recognition, as well as some cost guidance in FASB ASC Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. For public entities, the amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is prohibited. Additionally, an entity should apply the amendments either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. If an entity elects the latter, transition method, then it must also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes. The new standard will be effective during our first quarter ending March 31, 2017. We are currently evaluating the new standard to determine which reporting option allows us to report the most meaningful information and are still evaluating the potential impact this new standard may have on our financial statements.

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Summary of Option Activity	'
	A summary of option activity under our 1998 Stock Option Plan as of December 31, 2013, and changes during the nine months ended September 30, 2014 is presented below.
		Number		Weighted Average				Weighted		Aggregate
		of		Exercise				Average		Intrinsic
		Stock Options		Price				Remaining		Value
								Contractual Life (years)		(in thousands)
	Outstanding, December 31, 2013	378,852		$	15.61			5.23		$	4,533
	Granted	55,000		30.68				—		—
	Exercised	(3,500	)	17.13				—		48
	Canceled/Forfeited	(2,083	)	18.15				—		24
	Outstanding, September 30, 2014	428,269		$	17.52			5.1		$	3,170
	Exercisable, September 30, 2014	340,435		$	15.34			4.08		$	2,973
Summary of Stock Options Outstanding	'
	The following table summarizes information about our stock options outstanding at September 30, 2014:
		Options Outstanding							Options Exercisable
	Range of Exercise Prices	Shares		Weighted		Weighted			Shares			Weighted
				Average		Average						Average
				Remaining		Exercise						Exercise
				Contractual		Price						Price
				Life (years)
	$0.01-9.43	71,352		2.22		$	8.72		71,352			$	8.72
	$9.44-15.60	70,000		4.31		12.51			64,166			12.3
	$15.61-33.36	286,917		6.01		20.93			204,917			18.59
		428,269		5.1		$	17.52		340,435			$	15.34
Status of Unvested Stock Options	'
	The summary of the status of our unvested stock options as of December 31, 2013 and changes during the nine months ended September 30, 2014 is presented below.
		Shares		Weighted Average
				Grant Date Fair Value
	Unvested stock options:
	Unvested at December 31, 2013	63,082		$	9.87
	Granted	55,000		16.91
	Vested	(28,915	)	9.8
	Canceled/Forfeited	(1,333	)	9.92
	Unvested at September 30, 2014	87,834		$	14.3

Inventory_Tables

Inventory (Tables)	9 Months Ended
	Sep. 30, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory	'
	Our inventory, net of allowance for obsolescence of $523,000 and $128,000 at September 30, 2014 and December 31, 2013, respectively, consisted of the following amounts:
		September 30, 2014		December 31, 2013
		(in thousands)
	Raw materials	$	23,700	$	20,524
	Work in process	7,650		6,308
		$	31,350	$	26,832

Earnings_per_Share_Tables

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted	'
	The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation(in thousands, except per share data).
		Three months ended				Nine months ended
		September 30,				September 30,
		2014		2013		2014		2013
	Numerator:
	Net income	$	3,883	$	3,394	$	10,124	$	11,233
	Denominator for basic net income per common share:
	Weighted average common shares outstanding	12,461		12,339		12,424		12,313
	Denominator for diluted net income per share:
	Weighted average common shares outstanding	12,461		12,339		12,424		12,313
	Dilutive effect of stock options and restricted stock	279		261		304		191
	Diluted weighted average shares	12,740		12,600		12,728		12,504
	Earnings per common share:
	Basic	$	0.31	$	0.28	$	0.81	$	0.91
	Diluted	$	0.3	$	0.27	$	0.8	$	0.9

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2014
Segment Reporting [Abstract]	'
Schedule of Segment Reporting Information, by Segment	'
	For the three months ended September 30, 2014 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	20,177	$	5,218	$	204	$	—		$	25,599
	Operating costs and expenses	8,110		3,493		101		8,055			19,759
	Other income, net	—		—		—		127			127
	Income before provision for income taxes	$	12,067	$	1,725	$	103	$	(7,928	)	$	5,967
	For the three months ended September 30, 2013 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	17,805	$	3,893	$	167	$	—		$	21,865
	Operating costs and expenses	7,449		2,454		80		6,794			16,777
	Other income, net	—		—		—		122			122
	Income before provision for  income taxes	$	10,356	$	1,439	$	87	$	(6,672	)	$	5,210
	For the nine months ended September 30, 2014 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	58,431	$	10,831	$	611	—			$	69,873
	Operating costs and expenses	23,815		6,826		269		23,676			54,586
	Other income, net	—		—		—		174			174
	Income before provision for income taxes	$	34,616	$	4,005	$	342	$	(23,502	)	$	15,461
	For the nine months ended September, 2013 (in thousands):
		Rental		Sales		Service & Maintenance		Corporate			Total
	Revenue	$	50,533	$	15,057	$	516	$	—		$	66,106
	Operating costs and expenses	20,519		8,935		233		19,349			49,036
	Other income, net	—		—		—		348			348
	Income before provision for income taxes	$	30,014	$	6,122	$	283	$	(19,001	)	$	17,418

StockBased_Compensation_Stock_

Stock-Based Compensation (Stock Option Activity) (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Number of Stock Options:	'	'
Outstanding, beginning of period (in shares)	378,852	'
Granted (in shares)	55,000	'
Exercised (in shares)	-3,500	'
Canceled/Forfeited (in shares)	-2,083	'
Outstanding, end of period (in shares)	428,269	378,852
Exercisable (in shares)	340,435	'
Weighted Average Exercise Price:	'	'
Outstanding, weighted average exercise price, beginning of period (in USD per share)	$15.61	'
Granted, weighted average exercise price (in USD per share)	$30.68	'
Exercised, weighted average exercise price (in USD per share)	$17.13	'
Canceled/Forfeited, weighted average exercise price (in USD per share)	$18.15	'
Outstanding, weighted average exercise price, end of period (in USD per share)	$17.52	$15.61
Exercisable, weighted average exercise price (in USD per share)	$15.34	'
Options, Weighted Average Remaining Contractual Term:	'	'
Outstanding, weighted average remaining contractual life	'5 years 1 month 6 days	'5 years 2 months 23 days
Exercisable, weighted average remaining contractual life	'4 years 0 months 31 days	'
Options, Intrinsic Value:	'	'
Outstanding, aggregate intrinsic value	$3,170	$4,533
Exercised, Aggregate Intrinsic Value	48	'
Canceled/Forfeited Aggregate Intrinsic Value	24	'
Exercisable, aggregate intrinsic value	$2,973	'

StockBased_Compensation_Stock_1

Stock-Based Compensation (Stock Options by Exercise Price Range) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Options outstanding, shares	428,269
Options outstanding, weighted average remaining contractual life	'5 years 1 month 7 days
Options outstanding, weighted average exercise price (in USD per share)	$17.52
Options exercisable, shares	340,435
Options exercisable, weighted average exercise price (in USD per share)	$15.34
$0.01-9.43	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Options outstanding, shares	71,352
Options outstanding, weighted average remaining contractual life	'2 years 2 months 21 days
Options outstanding, weighted average exercise price (in USD per share)	$8.72
Options exercisable, shares	71,352
Options exercisable, weighted average exercise price (in USD per share)	$8.72
Range of exercise prices, lower limit (in USD per share)	$0.01
Range of exercise prices, upper limit (in USD per share)	$9.43
$9.44-15.60	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Options outstanding, shares	70,000
Options outstanding, weighted average remaining contractual life	'4 years 3 months 21 days
Options outstanding, weighted average exercise price (in USD per share)	$12.51
Options exercisable, shares	64,166
Options exercisable, weighted average exercise price (in USD per share)	$12.30
Range of exercise prices, lower limit (in USD per share)	$9.44
Range of exercise prices, upper limit (in USD per share)	$15.60
$15.61-33.36	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Options outstanding, shares	286,917
Options outstanding, weighted average remaining contractual life	'6 years 0 months 2 days
Options outstanding, weighted average exercise price (in USD per share)	$20.93
Options exercisable, shares	204,917
Options exercisable, weighted average exercise price (in USD per share)	$18.59
Range of exercise prices, lower limit (in USD per share)	$15.61
Range of exercise prices, upper limit (in USD per share)	$33.36

StockBased_Compensation_Summar

Stock-Based Compensation (Summary of Unvested Stock Options) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Shares:	'	'
Unvested, beginning of period (in shares)	63,082	'
Granted (in shares)	55,000	'
Vested (in shares)	-28,915	'
Canceled/Forfeited (in shares)	-1,333	'
Unvested, end of period (in shares)	87,834	'
Weighted Average Grant Date Fair Value:	'	'
Unvested, weighted average grant date fair value, beginning of period (in USD per share)	$9.87	'
Granted, weighted average grant date fair value (in USD per share)	$16.91	'
Vested, weighted average grant date fair value (in USD per share)	$9.80	'
Canceled/Forfeited, weighted average grant date fair value (in USD per share)	$9.92	'
Unvested, weighted average grant date fair value, end of period (in USD per share)	$14.30	'
Unrecognized compensation cost related to awards, weighted average period for recognition	'15 months	'
Stock Options	'	'
Weighted Average Grant Date Fair Value:	'	'
Unrecognized compensation cost related to stock options	$873,283	'
Unrecognized compensation cost related to awards, weighted average period for recognition	'2 years 2 months 13 days	'
Share-based compensation expense	$297,522	$122,702

StockBased_Compensation_Restri

Stock-Based Compensation (Restricted Stock) (Details) (USD $)	9 Months Ended			0 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Jan. 23, 2014	Mar. 20, 2014	Mar. 20, 2014	Mar. 20, 2014
		Restricted Stock	Restricted Stock	Chief Executive Officer	Chief Financial Officer	Executive Officer	Director
				Restricted Stock	Restricted Stock	Restricted Stock	Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'
Awards granted in period	'	'	'	49,420	15,000	'	13,152
Award vesting period	'	'	'	'1 year	'	'1 year	'1 year
Share-based compensation expense	'	$2,140,233	$1,011,727	'	'	'	'
Total unrecognized compensation expense	'	$1,282,724	'	'	'	'	'
Unrecognized compensation cost related to awards, weighted average period for recognition	'15 months	'	'	'	'	'	'

Inventory_Details

Inventory (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Inventory Disclosure [Abstract]	'	'	'
Allowance for inventory obsolescence	$523,000	'	$128,000
Raw materials	23,700,000	'	20,524,000
Work in process	7,650,000	'	6,308,000
Inventory, net	31,350,000	'	26,832,000
Write-offs of obsolete inventory against allowance	$0	$0	'

Credit_Facility_Details

Credit Facility (Details) (Revolving Credit Facility, USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Line of Credit Facility [Line Items]	'	'	'
Borrowing base amount available	$29,500,000	'	$30,000,000
Potential increase in borrowing capacity	20,000,000	'	'
Maximum borrowing capacity	50,000,000	'	'
Borrowing base, component, % of eligible accounts receivable	80.00%	'	'
Borrowing base, component, % of eligible inventory	50.00%	'	'
Borrowing base, allowable share of total commitment amount attributable to inventory component	50.00%	'	'
Borrowing base, component, % of eligible equipment inventory	75.00%	'	'
Weighted average interest rate	1.40%	'	'
Default trigger, certain defaults of other company indebtedness, amount	50,000	'	'
Default trigger, rendering of certain judgments, amount	150,000	'	'
Line of credit, non-current portion	$417,000,000	$577,000,000	'
LIBOR Rate	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Reference rate, number of allowable LIBOR-based borrowings outstanding	3	'	'
Variable rate, applicable margin	1.25%	'	'
CB Floating Rate	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Variable rate, applicable margin	1.50%	'	'
Minimum	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Minimum commitment coverage ratio allowed	2	'	'
Maximum	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Maximum leverage ratio allowed	2.5	'	'

Earnings_per_Share_Basic_and_D

Earnings per Share (Basic and Diluted) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:	'	'	'	'
Net income	$3,883	$3,394	$10,124	$11,233
Denominator for basic net income per common share:	'	'	'	'
Weighted average common shares outstanding (in shares)	12,461	12,339	12,424	12,313
Denominator for diluted net income per share:	'	'	'	'
Weighted average common shares outstanding (in shares)	12,461	12,339	12,424	12,313
Dilutive effect of stock options and restricted stock (in shares)	279	261	304	191
Diluted weighted average shares (in shares)	12,740	12,600	12,728	12,504
Earnings per common share:	'	'	'	'
Basic (in USD per share)	$0.31	$0.28	$0.81	$0.91
Diluted (in USD per share)	$0.30	$0.27	$0.80	$0.90

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
			segment
Segment Reporting Information [Line Items]	'	'	'	'
Number of operating segments	'	'	1	'
Revenue	$25,599,000	$21,865,000	$69,873,000	$66,106,000
Operating costs and expenses	19,759,000	16,777,000	54,586,000	49,036,000
Other income, net	127,000	122,000	174,000	348,000
Income before provision for income taxes	5,967,000	5,210,000	15,461,000	17,418,000
Rental	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenue	20,177,000	17,805,000	58,431,000	50,533,000
Operating costs and expenses	8,110,000	7,449,000	23,815,000	20,519,000
Other income, net	0	0	0	0
Income before provision for income taxes	12,067,000	10,356,000	34,616,000	30,014,000
Sales	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenue	5,218,000	3,893,000	10,831,000	15,057,000
Operating costs and expenses	3,493,000	2,454,000	6,826,000	8,935,000
Other income, net	0	0	0	0
Income before provision for income taxes	1,725,000	1,439,000	4,005,000	6,122,000
Service & Maintenance	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenue	204,000	167,000	611,000	516,000
Operating costs and expenses	101,000	80,000	269,000	233,000
Other income, net	0	0	0	0
Income before provision for income taxes	103,000	87,000	342,000	283,000
Corporate	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Revenue	0	0	0	0
Operating costs and expenses	8,055,000	6,794,000	23,676,000	19,349,000
Other income, net	127,000	122,000	174,000	348,000
Income before provision for income taxes	($7,928,000)	($6,672,000)	($23,502,000)	($19,001,000)