Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 04, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NATURAL GAS SERVICES GROUP INC | |
Entity Central Index Key | 1,084,991 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 12,745,999 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 29,978 | $ 6,181 |
Trade accounts receivable, net of allowance for doubtful accounts of $845 and $507, respectively | 7,557 | 10,408 |
Inventory, net | 28,085 | 32,624 |
Prepaid income taxes | 3,776 | 6,242 |
Prepaid expenses and other | 553 | 472 |
Total current assets | 69,949 | 55,927 |
Rental equipment, net of accumulated depreciation of $108,229 and $106,179, respectively | 196,951 | 208,292 |
Property and equipment, net of accumulated depreciation of $11,164 and $10,830, respectively | 8,875 | 7,362 |
Goodwill | 10,039 | 10,039 |
Intangibles, net of accumulated amortization of $1,351 and $1,257, respectively | 1,808 | 1,902 |
Other assets | 60 | 41 |
Total assets | 287,682 | 283,563 |
Current Liabilities: | ||
Accounts payable | 1,459 | 4,990 |
Accrued liabilities | 2,950 | 6,624 |
Current income tax liability | 6,328 | 851 |
Deferred income | 989 | 1,635 |
Total current liabilities | 11,726 | 14,100 |
Line of credit, non-current portion | 417 | 417 |
Deferred income tax liability | 55,675 | 58,304 |
Other long-term liabilities | 135 | 155 |
Total liabilities | $ 67,953 | $ 72,976 |
Commitments and contingencies | ||
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; 12,597 and 12,466 shares issued and outstanding, respectively | 126 | 124 |
Additional paid-in capital | 97,335 | 95,065 |
Retained earnings | 122,268 | 115,398 |
Total stockholders' equity | 219,729 | 210,587 |
Total liabilities and stockholders' equity | $ 287,682 | $ 283,563 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Allowance for doubtful accounts | $ 845 | $ 507 |
Noncurrent Assets: | ||
Accumulated depreciation, rental equipment | 108,229 | 106,179 |
Accumulated depreciation, property and equipment | 11,164 | 10,830 |
Accumulated amortization, intangibles | $ 1,351 | $ 1,257 |
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, shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 12,597,000 | 12,466,000 |
Common stock, shares outstanding | 12,597,000 | 12,466,000 |
Condensed Income Statements
Condensed Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Rental income | $ 18,491 | $ 20,177 | $ 58,806 | $ 58,431 |
Sales, net | 2,468 | 5,218 | 10,672 | 10,831 |
Service and maintenance income | 234 | 204 | 686 | 611 |
Total revenue | 21,193 | 25,599 | 70,164 | 69,873 |
Operating costs and expenses: | ||||
Cost of rentals, exclusive of depreciation stated separately below | 7,327 | 8,110 | 22,062 | 23,815 |
Cost of sales, exclusive of depreciation stated separately below | 1,740 | 3,493 | 7,706 | 6,826 |
Cost of service and maintenance, exclusive of depreciation and amortization stated separately below | 70 | 101 | 151 | 269 |
Loss on retirement of rental equipment | (3) | 0 | 4,370 | 0 |
Selling, general, and administrative expense | 2,667 | 2,527 | 8,131 | 7,860 |
Depreciation and amortization | 5,594 | 5,528 | 17,240 | 15,816 |
Total operating costs and expenses | 17,395 | 19,759 | 59,660 | 54,586 |
Operating income | 3,798 | 5,840 | 10,504 | 15,287 |
Other income (expense): | ||||
Interest expense | (7) | (4) | (13) | (9) |
Other income | 20 | 131 | 67 | 183 |
Total other income, net | 13 | 127 | 54 | 174 |
Income before provision for income taxes | 3,811 | 5,967 | 10,558 | 15,461 |
Provision for income taxes | 1,249 | 2,084 | 3,688 | 5,337 |
Net income | $ 2,562 | $ 3,883 | $ 6,870 | $ 10,124 |
Earnings per share: | ||||
Basic (in USD per share) | $ 0.20 | $ 0.31 | $ 0.55 | $ 0.81 |
Diluted (in USD per share) | $ 0.20 | $ 0.30 | $ 0.54 | $ 0.80 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 12,586 | 12,461 | 12,557 | 12,424 |
Diluted (in shares) | 12,801 | 12,740 | 12,783 | 12,728 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 6,870 | $ 10,124 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,240 | 15,816 |
Deferred income taxes | (2,629) | (226) |
Stock based compensation | 2,616 | 2,438 |
Bad debt allowance | 402 | 0 |
Inventory allowance | 70 | 395 |
Gain on sale of assets | (81) | (159) |
Loss on retirement of rental equipment | 4,370 | 0 |
Changes in current assets and liabilities: | ||
Trade accounts receivables | 2,449 | (2,762) |
Inventory | 3,912 | (4,895) |
Prepaid expenses | 2,287 | (3,024) |
Accounts payable and accrued liabilities | (7,107) | 2,785 |
Current income tax liability | 5,086 | 5,290 |
Deferred income | (646) | 1,140 |
Other | (19) | (11) |
Tax benefit from equity compensation | 0 | (414) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 34,820 | 26,497 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (11,163) | (46,388) |
Proceeds from sale of property and equipment | 113 | 239 |
NET CASH USED IN INVESTING ACTIVITIES | (11,050) | (46,149) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments from other long-term liabilities, net | (20) | (33) |
Repayments of line of credit, net | 0 | (160) |
Proceeds from exercise of stock options | 733 | 61 |
Taxes paid related to net share settlement of equity awards | (686) | 0 |
Tax benefit from equity compensation | 0 | 414 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 27 | 282 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 23,797 | (19,370) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 6,181 | 24,443 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 29,978 | 5,073 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | 13 | 9 |
Income taxes paid | 3,185 | 4,968 |
NON-CASH TRANSACTIONS | ||
Transfer of rental equipment components to inventory | 1,065 | 0 |
Transfer from inventory to property and equipment | $ 1,622 | $ 53 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 and the results of our operations for the three months and nine months ended September 30, 2015 and 2014 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, 2014 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, 2015 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2015 . 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 Financial Accounting Standards Board (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. On July 9, 2015, the FASB approved the deferral of the effective date of ASU No. 2014-09, by one year. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, 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, 2018. 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. On July 22, 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330), which finalizes Proposed ASU No. 2014-210 of the same name, and responds to stakeholders’ concerns that the guidance regarding the measurement of inventory is unnecessarily complex because there are several potential outcomes. In particular, the amendments in this ASU will be added to the FASB ASC under Topic 330, Inventory. The core principle of this ASU is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, retirement, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. The amendments more closely align the measurement of inventory in GAAP with the measurement of inventory in IFRS. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The new standard will be effective during our first quarter ending March 31, 2017. We are currently evaluating the potential impact this new standard may have on our financial statements . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 , and changes during the nine months ended September 30, 2015 is presented below. Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 432,269 $ 17.55 10.10 $ 2,786 Granted 50,000 22.90 Exercised (63,500 ) 11.56 Canceled/Forfeited (1,500 ) 30.41 Outstanding, September 30, 2015 417,269 $ 19.06 5.31 $ 954 Exercisable, September 30, 2015 313,766 $ 17.10 4.12 $ 947 The following table summarizes information about our stock options outstanding at September 30, 2015 : Range of Exercise Prices Options Outstanding Options Exercisable Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $0.01-15.70 94,852 3.48 $ 11.23 94,852 $ 11.23 $15.71-17.81 95,250 3.93 17.55 95,250 17.55 $17.82-20.48 119,667 4.52 19.58 106,167 19.69 $20.49-33.36 107,500 9.00 26.72 17,497 30.69 417,269 5.31 $ 19.06 313,766 $ 17.10 The summary of the status of our unvested stock options as of December 31, 2014 and changes during the nine months ended September 30, 2015 is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2014 91,834 $ 14.19 Granted 50,000 10.33 Vested (36,831 ) 13.12 Canceled/Forfeited (1,500 ) 16.79 Unvested at September 30, 2015 103,503 $ 12.66 As of September 30, 2015 , there was $868,663 of unrecognized compensation cost related to unvested options. Such cost is expected to be recognized over a weighted-average period of 1.8 years. Total compensation expense for stock options was $429,925 and $297,522 for the nine months ended September 30, 2015 and 2014 , 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 2014 performance, Mr. Taylor, was awarded 83,590 restricted shares on January 16, 2015 , which vest one year from the date of grant. On March 19, 2015 , the Compensation Committee awarded 20,000 shares of restricted common stock to each of G. Larry Lawrence, our CFO, and James Hazlett, our Vice President of Technical Services. The restricted shares to Messrs. Hazlett and Lawrence vest one year from the grant date. We also awarded and issued 21,968 shares of restricted common stock to our Board of Directors as partial payment for 2015 directors' fees. The restricted stock issued to our directors vests over one year, in quarterly installments, beginning March 31, 2016 . Total compensation expense related to restricted stock awards was $2,186,330 and $2,140,233 for the nine months ended September 30, 2015 and 2014 , respectively. As of September 30, 2015 , there was a total of $1,211,952 of unrecognized compensation expense related to these shares which is expected to be recognized over the next fifteen months. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Our inventory, net of allowance for obsolescence of $ 295,500 and $225,000 at September 30, 2015 and December 31, 2014 , respectively, consisted of the following amounts: September 30, 2015 December 31, 2014 (in thousands) Raw materials $ 23,606 $ 25,984 Work in process 4,479 6,640 $ 28,085 $ 32,624 During the nine months ended September 30, 2015 and 2014, there were no write-offs of obsolete inventory against the allowance for obsolescence. |
Retirement of Long-Lived Assets
Retirement of Long-Lived Assets | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Retirement of Long-Lived Assets | Retirement of Long-Lived Assets As a result of a decline in market conditions during the first half of 2015, management reviewed our rental compressor units that were not of the type, configuration, make or model that our customers were demanding or that were not cost efficient to refurbish, maintain and operate. As a result of that review, we determined that 258 units representing total horsepower of 32,259 should be retired from our rental fleet with key components from those units being re-utilized in future unit builds and/or repairs. We performed an optimization review and recorded a $4.4 million loss on the retirement of rental equipment to reduce the book value of each unit to the estimated fair value of approximately $967,000 for the key components being kept. The retirement is recorded in the condensed income statement under loss on retirement of rental equipment. |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility We have a senior secured revolving credit agreement the "Amended Credit Agreement" with JP Morgan Chase Bank, N.A (the "Lender") with an aggregate commitment of $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. 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, 2015 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 1.50% . For purposes of the CB Floating Rate, the Applicable Margin is 1.50% . For the nine month period ended September 30, 2015 , our weighted average interest rate was 1.45% . 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, 2017 , 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, 2015 , 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, 2015 and December 31, 2014 our outstanding balance on the line of credit was $417,000 . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2015 2014 Numerator: Net income $ 2,562 $ 3,883 $ 6,870 $ 10,124 Denominator for basic net income per common share: Weighted average common shares outstanding 12,586 12,461 12,557 12,424 Denominator for diluted net income per share: Weighted average common shares outstanding 12,586 12,461 12,557 12,424 Dilutive effect of stock options and restricted stock 215 279 226 304 Diluted weighted average shares 12,801 12,740 12,783 12,728 Earnings per common share: Basic $ 0.20 $ 0.31 $ 0.55 $ 0.81 Diluted $ 0.20 $ 0.30 $ 0.54 $ 0.80 In the three and nine months ended September 30, 2015, options to purchase 107,500 shares of common stock with exercise prices ranging from $22.90 to $33.36 were not included in the computation of dilutive income per share, due to their antidilutive effect. In the three and nine months ended September 30, 2014, options to purchase 55,000 shares of common stock with exercise prices ranging from $30.41 to $33.36 were not included in the computation of dilutive income per share, due to their antidilutive effect. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
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 assess its performance and c) having discrete financial information. Although we indeed look at our products 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. Our CODM does not make resource allocation decisions or access 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, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 18,491 $ 2,468 $ 234 $ — $ — $ 21,193 Operating costs and expenses 7,327 1,740 70 (3 ) 8,261 17,395 Other income, net — — — — 13 13 Income before provision for income taxes $ 11,164 $ 728 $ 164 $ 3 $ (8,248 ) $ 3,811 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 nine months ended September 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 58,806 $ 10,672 $ 686 $ — $ — $ 70,164 Operating costs and expenses 22,062 7,706 151 4,370 25,371 59,660 Other income, net — — — — 54 54 Income before provision for income taxes $ 36,744 $ 2,966 $ 535 $ (4,370 ) $ (25,317 ) $ 10,558 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 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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 Sum14
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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 Financial Accounting Standards Board (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. On July 9, 2015, the FASB approved the deferral of the effective date of ASU No. 2014-09, by one year. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, 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, 2018. 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. On July 22, 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330), which finalizes Proposed ASU No. 2014-210 of the same name, and responds to stakeholders’ concerns that the guidance regarding the measurement of inventory is unnecessarily complex because there are several potential outcomes. In particular, the amendments in this ASU will be added to the FASB ASC under Topic 330, Inventory. The core principle of this ASU is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, retirement, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. The amendments more closely align the measurement of inventory in GAAP with the measurement of inventory in IFRS. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The new standard will be effective during our first quarter ending March 31, 2017. We are currently evaluating the potential impact this new standard may have on our financial statements |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 , and changes during the nine months ended September 30, 2015 is presented below. Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 432,269 $ 17.55 10.10 $ 2,786 Granted 50,000 22.90 Exercised (63,500 ) 11.56 Canceled/Forfeited (1,500 ) 30.41 Outstanding, September 30, 2015 417,269 $ 19.06 5.31 $ 954 Exercisable, September 30, 2015 313,766 $ 17.10 4.12 $ 947 |
Summary of Stock Options Outstanding | The following table summarizes information about our stock options outstanding at September 30, 2015 : Range of Exercise Prices Options Outstanding Options Exercisable Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $0.01-15.70 94,852 3.48 $ 11.23 94,852 $ 11.23 $15.71-17.81 95,250 3.93 17.55 95,250 17.55 $17.82-20.48 119,667 4.52 19.58 106,167 19.69 $20.49-33.36 107,500 9.00 26.72 17,497 30.69 417,269 5.31 $ 19.06 313,766 $ 17.10 |
Status of Unvested Stock Options | The summary of the status of our unvested stock options as of December 31, 2014 and changes during the nine months ended September 30, 2015 is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2014 91,834 $ 14.19 Granted 50,000 10.33 Vested (36,831 ) 13.12 Canceled/Forfeited (1,500 ) 16.79 Unvested at September 30, 2015 103,503 $ 12.66 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Our inventory, net of allowance for obsolescence of $ 295,500 and $225,000 at September 30, 2015 and December 31, 2014 , respectively, consisted of the following amounts: September 30, 2015 December 31, 2014 (in thousands) Raw materials $ 23,606 $ 25,984 Work in process 4,479 6,640 $ 28,085 $ 32,624 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2015 2014 Numerator: Net income $ 2,562 $ 3,883 $ 6,870 $ 10,124 Denominator for basic net income per common share: Weighted average common shares outstanding 12,586 12,461 12,557 12,424 Denominator for diluted net income per share: Weighted average common shares outstanding 12,586 12,461 12,557 12,424 Dilutive effect of stock options and restricted stock 215 279 226 304 Diluted weighted average shares 12,801 12,740 12,783 12,728 Earnings per common share: Basic $ 0.20 $ 0.31 $ 0.55 $ 0.81 Diluted $ 0.20 $ 0.30 $ 0.54 $ 0.80 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | For the three months ended September 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 18,491 $ 2,468 $ 234 $ — $ — $ 21,193 Operating costs and expenses 7,327 1,740 70 (3 ) 8,261 17,395 Other income, net — — — — 13 13 Income before provision for income taxes $ 11,164 $ 728 $ 164 $ 3 $ (8,248 ) $ 3,811 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 nine months ended September 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 58,806 $ 10,672 $ 686 $ — $ — $ 70,164 Operating costs and expenses 22,062 7,706 151 4,370 25,371 59,660 Other income, net — — — — 54 54 Income before provision for income taxes $ 36,744 $ 2,966 $ 535 $ (4,370 ) $ (25,317 ) $ 10,558 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 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Number of Stock Options: | ||
Outstanding, beginning of period (in shares) | 432,269 | |
Granted (in shares) | 50,000 | |
Exercised (in shares) | (63,500) | |
Canceled/Forfeited (in shares) | (1,500) | |
Outstanding, end of period (in shares) | 417,269 | 432,269 |
Exercisable (in shares) | 313,766 | |
Weighted Average Exercise Price: | ||
Outstanding, weighted average exercise price, beginning of period (in USD per share) | $ 17.55 | |
Granted, weighted average exercise price (in USD per share) | 22.90 | |
Exercised, weighted average exercise price (in USD per share) | 11.56 | |
Canceled/Forfeited, weighted average exercise price (in USD per share) | 30.41 | |
Outstanding, weighted average exercise price, end of period (in USD per share) | 19.06 | $ 17.55 |
Exercisable, weighted average exercise price (in USD per share) | $ 17.10 | |
Options, Weighted Average Remaining Contractual Term: | ||
Outstanding, weighted average remaining contractual life | 5 years 3 months 23 days | 10 years 1 month 6 days |
Exercisable, weighted average remaining contractual life | 3 years 13 months 12 days | |
Options, Intrinsic Value: | ||
Outstanding, aggregate intrinsic value | $ 954 | $ 2,786 |
Exercisable, aggregate intrinsic value | $ 947 |
Stock-Based Compensation (Sto20
Stock-Based Compensation (Stock Options by Exercise Price Range) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 417,269 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 3 months 22 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 19.06 |
Options exercisable, shares | shares | 313,766 |
Options exercisable, weighted average exercise price (in USD per share) | $ 17.10 |
$0.01-15.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 94,852 |
Options outstanding, weighted average remaining contractual life (in years) | 3 years 4 months 52 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 11.23 |
Options exercisable, shares | shares | 94,852 |
Options exercisable, weighted average exercise price (in USD per share) | $ 11.23 |
Range of exercise prices, lower limit (in USD per share) | 0.01 |
Range of exercise prices, upper limit (in USD per share) | $ 15.70 |
$15.71-17.81 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 95,250 |
Options outstanding, weighted average remaining contractual life (in years) | 3 years 9 months 66 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 17.55 |
Options exercisable, shares | shares | 95,250 |
Options exercisable, weighted average exercise price (in USD per share) | $ 17.55 |
Range of exercise prices, lower limit (in USD per share) | 15.71 |
Range of exercise prices, upper limit (in USD per share) | $ 17.81 |
$17.82-20.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 119,667 |
Options outstanding, weighted average remaining contractual life (in years) | 4 years 5 months 37 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 19.58 |
Options exercisable, shares | shares | 106,167 |
Options exercisable, weighted average exercise price (in USD per share) | $ 19.69 |
Range of exercise prices, lower limit (in USD per share) | 17.82 |
Range of exercise prices, upper limit (in USD per share) | $ 20.48 |
$20.49-33.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 107,500 |
Options outstanding, weighted average remaining contractual life (in years) | 9 years |
Options outstanding, weighted average exercise price (in USD per share) | $ 26.72 |
Options exercisable, shares | shares | 17,497 |
Options exercisable, weighted average exercise price (in USD per share) | $ 30.69 |
Range of exercise prices, lower limit (in USD per share) | 20.49 |
Range of exercise prices, upper limit (in USD per share) | $ 33.36 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Unvested Stock Options) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares: | ||
Unvested, beginning of period (in shares) | 91,834 | |
Granted (in shares) | 50,000 | |
Vested (in shares) | (36,831) | |
Canceled/Forfeited (in shares) | (1,500) | |
Unvested, end of period (in shares) | 103,503 | |
Weighted Average Grant Date Fair Value: | ||
Unvested, weighted average grant date fair value, beginning of period (in USD per share) | $ 14.19 | |
Granted, weighted average grant date fair value (in USD per share) | 10.33 | |
Vested, weighted average grant date fair value (in USD per share) | 13.12 | |
Canceled/Forfeited, weighted average grant date fair value (in USD per share) | 16.79 | |
Unvested, weighted average grant date fair value, end of period (in USD per share) | $ 12.66 | |
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 unvested options | $ 868,663 | |
Unrecognized compensation cost related to awards, weighted average period for recognition | 1 year 9 months | |
Share-based compensation expense | $ 429,925 | $ 297,522 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock) (Details) - USD ($) | Mar. 19, 2015 | Jan. 16, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to awards, weighted average period for recognition | 15 months | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,186,330 | $ 2,140,233 | ||
Total unrecognized compensation expense | $ 1,211,952 | |||
Chief Executive Officer | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period | 83,590 | |||
Award vesting period | 1 year | |||
Executive Officer | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Chief Financial Officer | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period | 20,000 | |||
Vice President of Technical Services | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period | 20,000 | |||
Directors | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period | 21,968 | |||
Award vesting period | 1 year |
Inventory (Details)
Inventory (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Allowance for inventory obsolescence | $ 295,500 | $ 225,000 | |
Raw materials | 23,606,000 | 25,984,000 | |
Work in process | 4,479,000 | 6,640,000 | |
Inventory, net | 28,085,000 | $ 32,624,000 | |
Write-offs of obsolete inventory against allowance | $ 0 | $ 0 |
Retirement of Long-Lived Asse24
Retirement of Long-Lived Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($)rental_compressorhp | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||||
Amount of horsepower | hp | 32,259 | ||||
Loss on retirement of rental equipment | $ (3) | $ 0 | $ 4,370 | $ 0 | |
Rental Compressor Unit | |||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||||
Number of rental compressors that are not of type, configuration, make or model | rental_compressor | 258 | ||||
Estimated fair value of long-lived assets | $ 967 | ||||
Rental Compressor Unit | Loss on Retirement of Rental Equipment | |||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||||
Loss on retirement of rental equipment | $ 4,400 |
Credit Facility (Details)
Credit Facility (Details) | 9 Months Ended | |
Sep. 30, 2015USD ($)loan | Dec. 31, 2014USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit, non-current portion | $ 417,000 | $ 417,000 |
Revolving Credit Facility | ||
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 | 1.45% | |
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 | $ 417,000 |
LIBOR Rate | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Reference rate, number of allowable LIBOR-based borrowings outstanding | loan | 3 | |
Variable rate, applicable margin | 1.50% | |
CB Floating Rate | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Variable rate, applicable margin | 1.50% | |
Minimum | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Minimum commitment coverage ratio allowed | 2 | |
Maximum | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum leverage ratio allowed | 2.50 |
Earnings per Share (Basic and D
Earnings per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ 2,562 | $ 3,883 | $ 6,870 | $ 10,124 |
Denominator for basic net income per common share: | ||||
Weighted average common shares outstanding (in shares) | 12,586,000 | 12,461,000 | 12,557,000 | 12,424,000 |
Denominator for diluted net income per share: | ||||
Weighted average common shares outstanding (in shares) | 12,586,000 | 12,461,000 | 12,557,000 | 12,424,000 |
Dilutive effect of stock options and restricted stock (in shares) | 215,000 | 279,000 | 226,000 | 304,000 |
Diluted weighted average shares (in shares) | 12,801,000 | 12,740,000 | 12,783,000 | 12,728,000 |
Earnings per common share: | ||||
Basic (in USD per share) | $ 0.20 | $ 0.31 | $ 0.55 | $ 0.81 |
Diluted (in USD per share) | $ 0.20 | $ 0.30 | $ 0.54 | $ 0.80 |
Number of shares not included in the computation of dilutive income per share | 107,500 | 55,000 | 107,500 | 55,000 |
Antidilutive Effect [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Exercise price of shares not included in the computation of dilutive income per share, lower limit (in dollars per share) | $ 22.90 | $ 30.41 | $ 22.90 | $ 30.41 |
Exercise price of shares not included in the computation of dilutive income per share, upper limit (in dollars per share) | $ 33.36 | $ 33.36 | $ 33.36 | $ 33.36 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 21,193 | $ 25,599 | $ 70,164 | $ 69,873 |
Operating costs and expenses | 17,395 | 19,759 | 59,660 | 54,586 |
Other income, net | 13 | 127 | 54 | 174 |
Income before provision for income taxes | 3,811 | 5,967 | 10,558 | 15,461 |
Operating Segments | Rental | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18,491 | 20,177 | 58,806 | 58,431 |
Operating costs and expenses | 7,327 | 8,110 | 22,062 | 23,815 |
Other income, net | 0 | 0 | 0 | 0 |
Income before provision for income taxes | 11,164 | 12,067 | 36,744 | 34,616 |
Operating Segments | Sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,468 | 5,218 | 10,672 | 10,831 |
Operating costs and expenses | 1,740 | 3,493 | 7,706 | 6,826 |
Other income, net | 0 | 0 | 0 | 0 |
Income before provision for income taxes | 728 | 1,725 | 2,966 | 4,005 |
Operating Segments | Service & Maintenance | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 234 | 204 | 686 | 611 |
Operating costs and expenses | 70 | 101 | 151 | 269 |
Other income, net | 0 | 0 | 0 | 0 |
Income before provision for income taxes | 164 | 103 | 535 | 342 |
Operating Segments | Retirement of Rental Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Operating costs and expenses | (3) | 4,370 | ||
Other income, net | 0 | 0 | ||
Income before provision for income taxes | 3 | (4,370) | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating costs and expenses | 8,261 | 8,055 | 25,371 | 23,676 |
Other income, net | 13 | 127 | 54 | 174 |
Income before provision for income taxes | $ (8,248) | $ (7,928) | $ (25,317) | $ (23,502) |