Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 12,789,197 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 288,174,839 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 35,532 | $ 6,181 |
Trade accounts receivable, net of allowance for doubtful accounts of $833 and $507, respectively | 9,107 | 10,408 |
Inventory, net of allowance for obsolescence of $12 and $225, respectively | 27,722 | 32,624 |
Prepaid income taxes | 81 | 5,391 |
Prepaid expenses and other | 762 | 472 |
Total current assets | 73,204 | 55,076 |
Rental equipment, net of accumulated depreciation of $111,293 and $106,179, respectively | 191,933 | 208,292 |
Property and equipment, net of accumulated depreciation of $10,825 and $10,830, respectively | 8,527 | 7,362 |
Goodwill | 10,039 | 10,039 |
Intangibles, net of accumulated amortization of $1,382 and $1,257, respectively | 1,777 | 1,902 |
Other assets | 73 | 41 |
Total assets | 285,553 | 282,712 |
Current Liabilities: | ||
Accounts payable | 1,226 | 4,990 |
Accrued liabilities | 3,071 | 6,624 |
Deferred income | 271 | 1,635 |
Total current liabilities | 4,568 | 13,249 |
Line of credit | 417 | 417 |
Deferred income tax liability | 56,458 | 58,304 |
Other long-term liabilities | 129 | 155 |
Total liabilities | $ 61,572 | $ 72,125 |
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; 12,603 and 12,466 shares issued and outstanding, respectively | 126 | 124 |
Additional paid-in capital | 98,310 | 95,065 |
Retained earnings | 125,545 | 115,398 |
Total stockholders' equity | 223,981 | 210,587 |
Total liabilities and stockholders' equity | $ 285,553 | $ 282,712 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Allowance for doubtful accounts | $ 833 | $ 507 |
Allowance for inventory obsolescence | 12 | 225 |
Assets, Noncurrent [Abstract] | ||
Accumulated depreciation, rental equipment | 111,293 | 106,179 |
Accumulated depreciation, property and equipment | 10,825 | 10,830 |
Accumulated amortization, intangibles | $ 1,382 | $ 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, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,603,000 | 12,466,000 |
Common stock, shares outstanding | 12,603,000 | 12,466,000 |
Statements of Income
Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Rental income | $ 76,432 | $ 78,983 | $ 69,062 |
Sales | 18,519 | 17,200 | 19,479 |
Service and maintenance income | 968 | 791 | 707 |
Total revenue | 95,919 | 96,974 | 89,248 |
Operating costs and expenses: | |||
Cost of rentals, exclusive of depreciation stated separately below | 28,750 | 31,522 | 29,017 |
Cost of sales, exclusive of depreciation stated separately below | 13,633 | 11,297 | 11,582 |
Cost of service and maintenance, exclusive of depreciation stated separately below | 272 | 328 | 344 |
Loss on retirement of rental equipment | 4,370 | 0 | 0 |
Selling, general, and administrative expenses | 10,989 | 10,334 | 8,141 |
Depreciation and amortization | 22,758 | 21,507 | 18,144 |
Total operating costs and expenses | 80,772 | 74,988 | 67,228 |
Operating income | 15,147 | 21,986 | 22,020 |
Other income (expense): | |||
Interest expense | (15) | (10) | (56) |
Other income | 132 | 182 | 548 |
Total other income, net | 117 | 172 | 492 |
Income before provision for income taxes | 15,264 | 22,158 | 22,512 |
Provision for income taxes: | |||
Current | 6,963 | 1,190 | 399 |
Deferred | (1,846) | 6,840 | 7,723 |
Total income tax expense | 5,117 | 8,030 | 8,122 |
Net income | $ 10,147 | $ 14,128 | $ 14,390 |
Earnings per share: | |||
Earnings per share - Basic (in dollars per share) | $ 0.81 | $ 1.14 | $ 1.17 |
Earnings per share - Diluted (in dollars per share) | $ 0.79 | $ 1.11 | $ 1.15 |
Weighted average shares outstanding: | |||
Weighted average common shares outstanding, Basic (in shares) | 12,567 | 12,434 | 12,324 |
Weighted average common shares outstanding, Diluted (in shares) | 12,793 | 12,721 | 12,550 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings |
Preferred stock, shares outstanding, beginning of period at Dec. 31, 2012 | 0 | ||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2012 | 12,241,000 | ||||
Balance, beginning of period at Dec. 31, 2012 | $ 175,825 | $ 0 | $ 122 | $ 88,823 | $ 86,880 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares | 0 | 53,000 | |||
Exercise of common stock options | 829 | $ 0 | $ 0 | 829 | 0 |
Compensation expense on common stock options | 198 | $ 0 | $ 0 | 198 | 0 |
Issuance of restricted stock, shares | 0 | 72,000 | |||
Issuance of restricted stock | 0 | $ 0 | $ 0 | 0 | 0 |
Tax benefit (expense) of equity compensation | 10 | 0 | 10 | 0 | |
Compensation expense on restricted common stock | 1,485 | $ 0 | $ 1 | 1,484 | 0 |
Net income | 14,390 | 14,390 | |||
Preferred stock, shares outstanding, end of period at Dec. 31, 2013 | 0 | ||||
Common stock, shares outstanding, end of period at Dec. 31, 2013 | 12,366,000 | ||||
Balance, end of period at Dec. 31, 2013 | 192,737 | $ 0 | $ 123 | 91,344 | 101,270 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares | 0 | 3,000 | |||
Exercise of common stock options | 59 | $ 0 | $ 0 | 59 | 0 |
Compensation expense on common stock options | 426 | $ 0 | $ 0 | 426 | 0 |
Issuance of restricted stock, shares | 0 | 97,000 | |||
Issuance of restricted stock | 0 | $ 0 | $ 0 | 0 | 0 |
Tax benefit (expense) of equity compensation | 419 | 0 | 419 | 0 | |
Compensation expense on restricted common stock | 2,818 | $ 0 | $ 1 | 2,817 | 0 |
Net income | $ 14,128 | 14,128 | |||
Preferred stock, shares outstanding, end of period at Dec. 31, 2014 | 0 | 0 | |||
Common stock, shares outstanding, end of period at Dec. 31, 2014 | 12,466,000 | 12,466,000 | |||
Balance, end of period at Dec. 31, 2014 | $ 210,587 | $ 0 | $ 124 | 95,065 | 115,398 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares | 0 | 66,000 | |||
Exercise of common stock options | 776 | $ 0 | $ 1 | 775 | 0 |
Compensation expense on common stock options | 601 | $ 0 | $ 0 | 601 | 0 |
Issuance of restricted stock, shares | 0 | 71,000 | |||
Issuance of restricted stock | 0 | $ 0 | $ 0 | 0 | 0 |
Tax benefit (expense) of equity compensation | (379) | 0 | (379) | 0 | |
Compensation expense on restricted common stock | 2,944 | $ 0 | $ 1 | 2,943 | 0 |
Taxes paid related to net shares settlement of equity awards | (695) | (695) | |||
Net income | $ 10,147 | 10,147 | |||
Preferred stock, shares outstanding, end of period at Dec. 31, 2015 | 0 | 0 | |||
Common stock, shares outstanding, end of period at Dec. 31, 2015 | 12,603,000 | 12,603,000 | |||
Balance, end of period at Dec. 31, 2015 | $ 223,981 | $ 0 | $ 126 | $ 98,310 | $ 125,545 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 10,147 | $ 14,128 | $ 14,390 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,758 | 21,507 | 18,144 |
Deferred taxes | (1,846) | 6,840 | 7,723 |
Gain on extinguishment of liability | 0 | 0 | (223) |
Gain on disposal of assets | (179) | (160) | (48) |
Loss on retirement of rental equipment | 4,370 | 0 | 0 |
Bad debt allowance | 477 | 121 | 14 |
Inventory allowance | 205 | 395 | 0 |
Stock based compensation | 3,545 | 3,244 | 1,682 |
Changes in current assets (increase) decrease in: | |||
Trade accounts receivables | 824 | (3,779) | (73) |
Inventory | 5,382 | (6,112) | (323) |
Prepaid income taxes and prepaid expenses | 5,774 | (3,997) | (1,870) |
Changes in current liabilities increase (decrease) in: | |||
Accounts payable and accrued liabilities | (7,220) | 1,126 | 1,154 |
Current income tax liability | (1,230) | 920 | (162) |
Deferred income | (1,364) | 762 | (1,154) |
Other | (32) | (12) | 0 |
Tax benefit from equity compensation | 0 | (419) | (10) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 41,611 | 34,564 | 39,244 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of rental, property and equipment | (12,504) | (53,342) | (43,419) |
Proceeds from sale of property and equipment | 189 | 240 | 95 |
NET CASH USED IN INVESTING ACTIVITIES | (12,315) | (53,102) | (43,324) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of other long-term liabilities, net | (26) | (42) | (82) |
Repayments of line of credit, net | 0 | (160) | (320) |
Proceeds from exercise of stock options | 776 | 59 | 829 |
Tax benefit from equity compensation | 0 | 419 | 10 |
Taxes paid related to net share settlement of equity awards | (695) | 0 | 0 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 55 | 276 | 437 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 29,351 | (18,262) | (3,643) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 6,181 | 24,443 | 28,086 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 35,532 | 6,181 | 24,443 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid | 15 | 10 | 56 |
Income taxes paid | 6,530 | 4,108 | 2,590 |
NON-CASH TRANSACTIONS | |||
Transfer of rental equipment to inventory | 2,309 | 131 | 207 |
Transfer of inventory to property and equipment | 1,624 | 0 | 0 |
Property and equipment purchases included in accounts payable | $ 0 | $ 218 | $ 251 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Principles of Consolidation These notes apply to the financial statements of Natural Gas Services Group, Inc. (the "Company", “NGSG”, "Natural Gas Services Group", "we" or "our") (a Colorado corporation). Natural Gas Services Group, Inc. was formed on December 17, 1998 for the purposes of combining the operations of certain manufacturing, service and leasing entities. Nature of Operations Natural Gas Services Group, Inc. is a leading provider of small to medium horsepower compression equipment to the natural gas industry. We focus primarily on the non-conventional natural gas production business in the United States (such as coal bed methane, gas shale, tight gas and oil shale). We manufacture, fabricate and rent natural gas compressors that enhance the production of natural gas wells. NGSG provides maintenance services for its natural gas compressors. In addition, we sell custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. We also manufacture and sell flare systems for oil and natural gas plant and production facilities. Use of Estimates The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates include fixed asset lives, bad debt allowance and the allowance for inventory obsolescence. It is at least reasonably possible these estimates could be revised in the near term and the revisions could be material. Cash Equivalents For purposes of reporting cash flows, we consider all short-term investments with an original maturity of three months or less to be cash equivalents. Accounts Receivable Our trade receivables consist of customer obligations for the sale of compressors and flare systems due under normal trade terms, and operating leases for the use of our natural gas compressors. The receivables are not collateralized except as provided for under lease agreements. However, we typically require deposits of as much as 50% or use of progress payments for large custom sales contracts. We extend credit based on management's assessment of the customer's financial condition, receivable aging, customer disputes and general business and economic conditions. The allowance for doubtful accounts was $833,000 and $507,000 at December 31, 2015 and 2014 , respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance. Revenue Recognition Revenue from the sales of custom and fabricated compressors, and flare systems is recognized when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured and delivery occurs as directed by our customer. From time to time, we have customers that request units and flares to be built under a bill and hold arrangement. In order to recognize revenue under a bill and hold arrangement the following criteria was met: risk of ownership was passed to the customer, customer made a fixed commitment to purchase the goods, the buyer requested the bill and hold, there was a fixed schedule for delivery, we no longer had any specific performance obligations, the purchase was segregated at our facility and the equipment was complete and ready to ship. As of December 31, 2015 we recognized revenue of $4 million under these bill and hold arrangements. Exchange and rebuilt compressor revenue is recognized when both the replacement compressor has been delivered and the rebuild assessment has been completed. Revenue from compressor service and retrofitting 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. 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. Major Customers and Concentration of Credit Risk Sales and rental income to Devon Energy Production, Inc. ("Devon") and Occidental Permian, LTD. ("Oxy") in 2015 amounted to 21% and 10% of revenue, respectively. Sales and rental income to Devon and EOG Resources, Inc. ("EOG") in 2014 amounted to 18% and 15% of revenue, respectively. Sales and rental income to EOG and Devon in 2013 amounted to 18% and 15% of revenue. No other single customer accounted for more than 10% of our revenues in 2015 , 2014 or 2013 . Oxy and Devon amounted to 25% , and 10% , respectively, of our accounts receivable as of December 31, 2015 . EOG, Promatcon Tepatguna and Oxy amounted to 20% and 18% and 14%, respectively, of our accounts receivable as of December 31, 2014 . No other customers amounted to more than 10% of our accounts receivable as of December 31, 2015 and 2014 . Inventory Inventory is valued at the lower of cost or market. The cost of inventories is determined by the weighted average method. A reserve is recorded against inventory balances for estimated obsolescence. This reserve is based on specific identification and historical experience and totaled $12,000 and $225,000 at December 31, 2015 and 2014 , respectively. There were 7 newly completed compressor units at December 31, 2015 and none at December 31, 2014 available for sale or for use in our rental fleet. At December 31, 2015 and 2014 , inventory consisted of the following (in thousands): 2015 2014 Raw materials $ 20,726 $ 25,984 Finished goods 1,051 — Work in process 5,945 6,640 Total $ 27,722 $ 32,624 Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three to forty years. Rental equipment has an estimated useful life of fifteen years . Gains and losses resulting from sales and dispositions of property and equipment are included in current operations. Maintenance and repairs are charged to operations as incurred. Goodwill Goodwill represents the cost in excess of fair value of the identifiable net assets acquired. Goodwill is tested for impairment annually or whenever events indicate impairment may have occurred. Due to the weakening oil price environment, we performed a goodwill impairment test as of June 30, 2015 and our annual goodwill impairment test was performed in the fourth quarter of 2015. We experienced no impairment of goodwill during the years ended December 31, 2015 or 2014 . Intangibles At December 31, 2015 , NGSG had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2015 and 2014 was $1.8 million and $1.9 million respectively. Developed technology is amortized on a straight-line basis with a useful life of 20 years , with a weighted average remaining life of approximately nine years as of December 31, 2015 . Amortization expense recognized in each of the years ending December 31, 2015 , 2014 , and 2013 was $125,000 , $125,000 and $130,000 respectively. Estimated amortization expense for the years 2016-2024 is $125,000 per year. NGSG has an intangible asset with a gross carrying value of $654,000 at December 31, 2015 related to the trade name of SCS which was acquired in our acquisition of Screw Compression Systems in January 2005. This asset is not being amortized as it has been deemed to have an indefinite life. The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2015 December 31, 2014 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,382 $ 1,123 $ 2,505 $ 1,257 $ 1,248 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,382 $ 1,777 $ 3,159 $ 1,257 $ 1,902 Our policy is to periodically review intangibles for impairment through an assessment of the estimated future cash flows related to such assets. In the event that assets are found to be carried at amounts in excess of estimated undiscounted future cash flows, then the assets will be adjusted for impairment to a level commensurate with a discounted cash flow analysis of the underlying assets. Based upon our analysis, we experienced no impairment of intangible assets during the years ended December 31, 2015 or 2014 . Warranty We accrue amounts for estimated warranty claims based upon current and historical product warranty costs and any other related information known. The warranty reserve was $103,000 and $0 for December 31, 2015 and 2014 , respectively, and is included in accrued liabilities on the balance sheet. Financial Instruments and Concentrations of Credit Risk We invest our cash primarily in deposits and money market funds with commercial banks. At times, cash balances at banks and financial institutions may exceed federally insured amounts. Per Share Data Basic earnings per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted average number of common stock and common stock equivalent shares outstanding during the period. There were anti-dilutive securities in 2015 and 2014 and none in 2013 . The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Numerator: Net income $ 10,147 $ 14,128 $ 14,390 Denominator for basic net income per common share: Weighted average common shares outstanding 12,567 12,434 12,324 Denominator for diluted net income per share: Weighted average common shares outstanding 12,567 12,434 12,324 Dilutive effect of stock options and restricted shares 226 287 226 Diluted weighted average shares 12,793 12,721 12,550 Earnings per common share: Basic $ 0.81 $ 1.14 $ 1.17 Diluted $ 0.79 $ 1.11 $ 1.15 In the year-ended December 31, 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 year-ended December 31, 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. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In order to record any financial statement benefit, we are required to determine, based on technical merits of the position, whether it is more likely than not (a likelihood of more than 50 percent) that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. If that step is satisfied, then we must measure the tax position to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of the benefit that is greater than 50 percent likely of being realized upon ultimate settlement. We have no uncertain tax positions as of December 31, 2015 or 2014 . Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. ASC Topic 820 established a fair value hierarchy, which requires an entity to maximize the use of observable inputs when measuring fair value. These inputs are categorized as follows: Level 1- quoted prices in an active market for identical assets or liabilities; Level 2- quoted prices in an active market for similar assets or liabilities, inputs other than quoted prices that are observable for similar assets or liabilities, inputs derived principally from or corroborated by observable market data by correlation or other means; and Level 3- valuation methodology with unobservable inputs that are significant to the fair value measurement. Management believes that the fair value of our cash and cash equivalents, trade receivables, accounts payable and line of credit at December 31, 2015 and 2014 approximate their carrying values due to the short-term nature of the instruments or the use of prevailing market interest rates. Segments and Related Information ASC 280-10-50, “Operating Segments”, define 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. 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. Recently Issued Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842), as part of a joint project with the International Accounting Standards Board (“IASB”) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To satisfy the foregoing objective, the FASB is creating Topic 842, Leases, which supersedes Topic 840. Under the new guidance, a lessee will be required to recognize assets and liabilities for capital and operating leases with lease terms of more than 12 months. Additionally, this ASU will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The new standard will be effective during our first quarter ending March 31, 2019. We are currently evaluating the potential impact this new standard may have on our financial statements. On November 20, 2015, FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). ASU No. 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. 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. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU requires entities measuring inventories under the first-in, first-out or average cost methods to measure inventory at the lower of cost or net realizable value, where net realizable value is "estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation." Inventory was previously required to be measured at the lower of cost or market value, where the measurement of market value had several potential outcomes. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted provided that presentation is applied to the beginning of the fiscal year of adoption. A reporting entity may apply the amendment prospectively. We are currently evaluating the potential impact this new standard may have on our financial statements. On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40)-Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 provides guidance to U.S. GAAP about management’s responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU No. 2014-15 (1) defines the term substantial doubt, (2) requires an evaluation of every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plan, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. We do not expect this new standard to have a material impact on our financial statements. On May 28, 2014, the FASB issued 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. In August 2015, the FASB issued ASU No. 2015-14 deferring 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 adoption is permitted only for annual reporting periods beginning after December 15, 2016, including interim periods within that year. 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 Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current-year presentation. These reclassifications had no effect on the reported results of operations. |
Rental Activity
Rental Activity | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Rental Activity | Rental Activity We rent natural gas compressor packages to entities in the petroleum industry. These rental arrangements are classified as operating leases and generally have original terms of six months to two years and continue on a month-to-month basis thereafter. Depreciation expense for rental equipment was $21.0 million , $19.8 million and $16.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2015 are as follows : Years Ending December 31, (in thousands) 2016 $ 24,284 2017 1,296 Thereafter 121 Total $ 25,701 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following at December 31, 2015 and 2014 (in thousands): Useful Lives (Years) 2015 2014 Land and building 30 $ 7,025 $ 5,636 Leasehold improvements 39 794 793 Office equipment and furniture 5 1,380 1,376 Software 5 573 573 Machinery and equipment 7 3,105 2,847 Vehicles 3 6,475 6,967 Total 19,352 18,192 Less accumulated depreciation (10,825 ) (10,830 ) Total $ 8,527 $ 7,362 Depreciation expense for property and equipment was $1.6 million for the years ended December 31, 2015 , 2014 and 2013 . |
Retirement of Long-Lived Assets
Retirement of Long-Lived Assets | 12 Months Ended |
Dec. 31, 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 income statement under loss on retirement of rental equipment. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 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 1.25% . 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 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 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 December 31, 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 December 31, 2015 our balance on the line of credit was $417,000 . Our weighted average interest rate for the year ended December 31, 2015 was 1.69% . |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | Other Long-term Liabilities At December 31, 2012, we had a long-term liability of $275,000 to Midland Development Corporation. The liability was fully satisfied during the quarter ended March 31, 2013. As a result of our performance under the agreement, a payment to Midland Development Corporation of $52,000 was made to settle the liability, resulting in a gain of $223,000 , which is included in the other income line, in our statement of income for the year ended December 31, 2013. In addition, we entered into a purchase agreement with a vendor on July 30, 2008 pursuant to which we agreed to purchase up to $4.8 million of our paint and coating requirements exclusively from the vendor. In connection with the execution of the agreement, the vendor paid us a $300,000 fee which is considered to be a discount toward future purchases from the vendor. The $300,000 payment we received is recorded as a long-term liability and will decrease as the purchase commitment is fulfilled. The long-term liability remaining for the purchase commitment was $129,000 and $155,000 as of December 31, 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2015 , 2014 and 2013 , consists of the following (in thousands): 2015 2014 2013 Current provision: Federal $ 6,440 $ 995 $ 69 State 523 195 330 Total current provision 6,963 1,190 399 Deferred provision: Federal (1,846 ) 6,840 7,723 Total deferred provision (1,846 ) 6,840 7,723 Total provision $ 5,117 $ 8,030 $ 8,122 The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of December 31, 2015 and 2014 , are as follows (in thousands): 2015 2014 Deferred income tax assets: Stock Compensation $ 1,011 $ 1,249 Other 4 80 Total deferred income tax assets $ 1,015 $ 1,329 Deferred income tax liabilities: Property and equipment $ (56,132 ) (58,610 ) Goodwill and other intangible assets (998 ) (1,023 ) Other (343 ) — Total deferred income tax liabilities (57,473 ) (59,633 ) Net deferred income tax liabilities $ (56,458 ) $ (58,304 ) The effective tax rate for the years ended December 31, 2015 , 2014 and 2013 , differs from the statutory rate as follows: 2015 2014 2013 Statutory rate 34.0 % 34.0 % 34.0 % State and local taxes 1.5 % 1.5 % 1.7 % Other (2.0 )% 0.7 % 0.4 % Effective rate 33.5 % 36.2 % 36.1 % Our policy regarding income tax interest and penalties is to expense those items as general and administrative expense. During the years ended December 31, 2015 , 2014 and 2013 , there were no significant income tax interest or penalty items in the statement of income. We had a federal net operating loss carry forward of $3.2 million as of December 31, 2012, which was utilized in the year ended December 31, 2013. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal or state income tax examination by tax authorities for years before 2011 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock We have a total of 5.0 million authorized preferred shares with rights and preferences as designated by the Board of Directors. As of December 31, 2015 and 2014 , there were no issued or outstanding preferred shares. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Restricted Stock On June 3, 2014, at our annual meeting of shareholders, our shareholders approved a proposed amendment to the 2009 Restricted Stock/Unit Plan (the "Plan") to add additional 500,000 shares of common stock to the Plan, thereby authorizing the issuance of up to 800,000 shares of common stock under the Plan. On March 19, 2015, the Compensation Committee awarded 20,000 shares of restricted common stock each to G. Larry Lawrence, our CFO, and James Hazlett, our Vice President of Technical Services, which 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. 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. Compensation expense related to the restricted shares was approximately $2,944,000 , $2,818,000 and $1,485,000 for the years ended December 31, 2015 , 2014, and 2013, respectively. As of December 31, 2015 , there was a total of approximately $457,000 of unrecognized compensation expense related to the nonvested portion of these restricted shares. This expense is expected to be recognized within one year. As of December 31, 2015, 361,394 shares were still available for issuance under the Plan. A summary of all restricted stock activity as of December 31, 2015 and changes during the year then ended is presented below. Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 99,238 $ 28.22 9.00 $ 2,286 Granted 145,558 19.17 — 2,886 Vested (99,238 ) 28.22 — 2,100 Canceled/Forfeited — — — — Outstanding, December 31, 2015 145,558 $ 19.17 9.12 $ 3,246 Stock Option Plan Our 1998 Stock Option Plan (the "Stock Option Plan"), which is stockholder approved, permits the granting of stock options to its employees for up to 550,000 shares of common stock. On June 16, 2009, at our annual meeting of shareholders, our shareholders approved a proposed amendment to the Stock Option Plan to add additional 200,000 shares of common stock to the Stock Option Plan, thereby authorizing the issuance of up to 750,000 shares of common stock under the Stock Option Plan. We believe that such awards better align the interests of our employees with our stockholders. Option awards are generally granted with an exercise price equal to the market price of our stock at the date of grant; those option awards generally vest based on three years of continuous service and have ten -year contractual terms. Certain option and share awards provide for accelerated vesting if there is a change in control of the Company (as defined in the Stock Option Plan). The last date that grants can be made under the Stock Option Plan is March 1, 2016, pending shareholder approval of an extension to the Stock Option Plan. As of December 31, 2015 , 93,419 shares were still available for issue under the Stock Option Plan. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of options granted is based on the vesting period and historical exercise and post-vesting employment termination behavior for similar grants. We use historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Weighted average Black -Scholes fair value assumption during the years ended December 31, are as follows: 2015 2014 2013 Risk free rate 1.56 % 1.96 % 1.02 % Expected life 6 years 6 years 6 years Expected volatility 45.07 % 58.44 % 60.39 % Expected dividend yield — — — A summary of all option activity as of December 31, 2015 and changes during the year then ended 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 4.89 $ 2,786 Granted 50,000 22.90 Exercised (66,000 ) 11.76 481 Canceled/Forfeited (1,500 ) 30.41 — Expired — — Outstanding, December 31, 2015 414,769 $ 19.07 5.08 $ 1,814 Exercisable, December 31, 2015 312,933 $ 17.13 3.93 $ 1,766 We granted one option to purchase a total of 50,000 shares to non-executive employees in April 2015 at an exercise price of $22.90 with a three year vesting period. The weighted average grant date fair value of options granted during the years 2015 , 2014 , and 2013 was $10.33 , $16.56 , and $10.30 respectively. The total intrinsic value, or the difference between the exercise price and the market price on the date of exercise, of options exercised during the years ended December 31, 2015 , 2014 , and 2013 was approximately $ $481,000 , $48,000 , and $458,000 respectively. Cash received from stock options exercised during the years ended December 31, 2015 , 2014 , and 2013 was $776,000 , $59,000 , and $829,000 , respectively. The following table summarizes information about our stock options outstanding at December 31, 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 3.23 $ 11.23 94,852 $ 11.23 $15.71-17.81 92,750 3.78 $ 17.56 92,750 $ 17.56 $17.82-20.48 119,667 4.27 $ 19.58 106,167 $ 19.69 $20.49-33.36 107,500 8.75 $ 26.72 19,164 $ 30.05 414,769 5.08 $ 19.07 312,933 $ 17.13 The summary of the status of our unvested stock options as of December 31, 2015 and changes during the year then ended 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 (38,498 ) $ 13.09 Cancelled/Forfeited (1,500 ) $ 16.79 Unvested at December 31, 2015 101,836 $ 12.67 We recognized stock compensation expense from stock options vesting of $601,000 , $426,000 , and $198,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , there was approximately $722,000 of total unamortized compensation cost related to unvested stock options. We expect to recognize such cost over a weighted-average period of 3.0 years . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 401(k) Plan We offer a 401(k) Plan to all employees that have reached the age of eighteen and have completed six months of service. The participants may contribute up to 100% of their salary subject to IRS limitations. Employer contributions are subject to Board discretion and are subject to a vesting schedule of 20% each year after the first year and 100% after six years. We contributed $387,000 , $296,000 , and $294,000 to the 401(k) Plan in 2015 , 2014 and 2013 , respectively. Rented Facilities, Vehicles and Equipment We lease certain of our facilities and equipment under operating leases with terms generally ranging from month-to-month to five years . Most leases contain renewal options. Remaining future minimum rental payments due under these leases are as follows: Years Ending December 31, (in thousands) 2016 $ 383 2017 407 2018 275 2019 59 Total $ 1,124 Rent expense under such leases was $ 375,000 , $380,000 , and $358,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. Legal Proceedings 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 effect on our financial position, results of operations or cash flow. We are not currently a party to any bankruptcy, receivership, reorganization, adjustment or similar proceeding, and we are not aware of any other threatened litigation. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (in thousands, except per share data) – Unaudited 2015 Q1 Q2 Q3 Q4 Total Total revenue $ 24,741 $ 24,230 $ 21,193 $ 25,755 $ 95,919 Operating income 5,787 919 3,798 4,643 15,147 Net income 3,694 614 2,562 3,277 10,147 Net income per share - Basic 0.30 0.05 0.20 0.26 0.81 Net income per share - Diluted 0.29 0.05 0.20 0.26 0.79 2014 Q1 Q2 Q3 Q4 Total Total revenue $ 22,322 $ 21,952 $ 25,599 $ 27,101 $ 96,974 Operating income 4,362 5,085 5,840 6,699 21,986 Net income 2,856 3,385 3,883 4,004 14,128 Net income per share - Basic 0.23 0.27 0.31 0.32 1.14 Net income per share - Diluted 0.23 0.27 0.30 0.32 1.11 Amounts may not add due to rounding differences. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Principles of Consolidation | Organization and Principles of Consolidation These notes apply to the financial statements of Natural Gas Services Group, Inc. (the "Company", “NGSG”, "Natural Gas Services Group", "we" or "our") (a Colorado corporation). Natural Gas Services Group, Inc. was formed on December 17, 1998 for the purposes of combining the operations of certain manufacturing, service and leasing entities. |
Nature of Operations | Nature of Operations Natural Gas Services Group, Inc. is a leading provider of small to medium horsepower compression equipment to the natural gas industry. We focus primarily on the non-conventional natural gas production business in the United States (such as coal bed methane, gas shale, tight gas and oil shale). We manufacture, fabricate and rent natural gas compressors that enhance the production of natural gas wells. NGSG provides maintenance services for its natural gas compressors. In addition, we sell custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. We also manufacture and sell flare systems for oil and natural gas plant and production facilities. |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates include fixed asset lives, bad debt allowance and the allowance for inventory obsolescence. It is at least reasonably possible these estimates could be revised in the near term and the revisions could be material. |
Cash Equivalents | Cash Equivalents For purposes of reporting cash flows, we consider all short-term investments with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable Our trade receivables consist of customer obligations for the sale of compressors and flare systems due under normal trade terms, and operating leases for the use of our natural gas compressors. The receivables are not collateralized except as provided for under lease agreements. However, we typically require deposits of as much as 50% or use of progress payments for large custom sales contracts. We extend credit based on management's assessment of the customer's financial condition, receivable aging, customer disputes and general business and economic conditions. The allowance for doubtful accounts was $833,000 and $507,000 at December 31, 2015 and 2014 , respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance. |
Revenue Recognition | Revenue Recognition Revenue from the sales of custom and fabricated compressors, and flare systems is recognized when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured and delivery occurs as directed by our customer. From time to time, we have customers that request units and flares to be built under a bill and hold arrangement. In order to recognize revenue under a bill and hold arrangement the following criteria was met: risk of ownership was passed to the customer, customer made a fixed commitment to purchase the goods, the buyer requested the bill and hold, there was a fixed schedule for delivery, we no longer had any specific performance obligations, the purchase was segregated at our facility and the equipment was complete and ready to ship. As of December 31, 2015 we recognized revenue of $4 million under these bill and hold arrangements. Exchange and rebuilt compressor revenue is recognized when both the replacement compressor has been delivered and the rebuild assessment has been completed. Revenue from compressor service and retrofitting 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. 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. |
Major Customers and Concentration of Credit Risk | Major Customers and Concentration of Credit Risk Sales and rental income to Devon Energy Production, Inc. ("Devon") and Occidental Permian, LTD. ("Oxy") in 2015 amounted to 21% and 10% of revenue, respectively. Sales and rental income to Devon and EOG Resources, Inc. ("EOG") in 2014 amounted to 18% and 15% of revenue, respectively. Sales and rental income to EOG and Devon in 2013 amounted to 18% and 15% of revenue. No other single customer accounted for more than 10% of our revenues in 2015 , 2014 or 2013 . Oxy and Devon amounted to 25% , and 10% , respectively, of our accounts receivable as of December 31, 2015 . EOG, Promatcon Tepatguna and Oxy amounted to 20% and 18% and 14%, respectively, of our accounts receivable as of December 31, 2014 . No other customers amounted to more than 10% of our accounts receivable as of December 31, 2015 and 2014 . |
Inventory | Inventory Inventory is valued at the lower of cost or market. The cost of inventories is determined by the weighted average method. A reserve is recorded against inventory balances for estimated obsolescence. This reserve is based on specific identification and historical experience and totaled $12,000 and $225,000 at December 31, 2015 and 2014 , respectively. There were 7 newly completed compressor units at December 31, 2015 and none at December 31, 2014 available for sale or for use in our rental fleet. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three to forty years. Rental equipment has an estimated useful life of fifteen years . Gains and losses resulting from sales and dispositions of property and equipment are included in current operations. Maintenance and repairs are charged to operations as incurred. |
Goodwill | Goodwill Goodwill represents the cost in excess of fair value of the identifiable net assets acquired. Goodwill is tested for impairment annually or whenever events indicate impairment may have occurred. |
Intangibles | Intangibles At December 31, 2015 , NGSG had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2015 and 2014 was $1.8 million and $1.9 million respectively. Developed technology is amortized on a straight-line basis with a useful life of 20 years , with a weighted average remaining life of approximately nine years as of December 31, 2015 . Amortization expense recognized in each of the years ending December 31, 2015 , 2014 , and 2013 was $125,000 , $125,000 and $130,000 respectively. Estimated amortization expense for the years 2016-2024 is $125,000 per year. NGSG has an intangible asset with a gross carrying value of $654,000 at December 31, 2015 related to the trade name of SCS which was acquired in our acquisition of Screw Compression Systems in January 2005. This asset is not being amortized as it has been deemed to have an indefinite life. The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2015 December 31, 2014 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,382 $ 1,123 $ 2,505 $ 1,257 $ 1,248 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,382 $ 1,777 $ 3,159 $ 1,257 $ 1,902 Our policy is to periodically review intangibles for impairment through an assessment of the estimated future cash flows related to such assets. In the event that assets are found to be carried at amounts in excess of estimated undiscounted future cash flows, then the assets will be adjusted for impairment to a level commensurate with a discounted cash flow analysis of the underlying assets. |
Warranty | Warranty We accrue amounts for estimated warranty claims based upon current and historical product warranty costs and any other related information known. |
Financial Instruments and Concentrations of Credit Risk | Financial Instruments and Concentrations of Credit Risk We invest our cash primarily in deposits and money market funds with commercial banks. At times, cash balances at banks and financial institutions may exceed federally insured amounts. |
Per Share Data | Per Share Data Basic earnings per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted average number of common stock and common stock equivalent shares outstanding during the period. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In order to record any financial statement benefit, we are required to determine, based on technical merits of the position, whether it is more likely than not (a likelihood of more than 50 percent) that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. If that step is satisfied, then we must measure the tax position to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of the benefit that is greater than 50 percent likely of being realized upon ultimate settlement. We have no uncertain tax positions as of December 31, 2015 or 2014 . |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. ASC Topic 820 established a fair value hierarchy, which requires an entity to maximize the use of observable inputs when measuring fair value. These inputs are categorized as follows: Level 1- quoted prices in an active market for identical assets or liabilities; Level 2- quoted prices in an active market for similar assets or liabilities, inputs other than quoted prices that are observable for similar assets or liabilities, inputs derived principally from or corroborated by observable market data by correlation or other means; and Level 3- valuation methodology with unobservable inputs that are significant to the fair value measurement. Management believes that the fair value of our cash and cash equivalents, trade receivables, accounts payable and line of credit at December 31, 2015 and 2014 approximate their carrying values due to the short-term nature of the instruments or the use of prevailing market interest rates. |
Segments and Related Information | Segments and Related Information ASC 280-10-50, “Operating Segments”, define 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. 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842), as part of a joint project with the International Accounting Standards Board (“IASB”) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To satisfy the foregoing objective, the FASB is creating Topic 842, Leases, which supersedes Topic 840. Under the new guidance, a lessee will be required to recognize assets and liabilities for capital and operating leases with lease terms of more than 12 months. Additionally, this ASU will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The new standard will be effective during our first quarter ending March 31, 2019. We are currently evaluating the potential impact this new standard may have on our financial statements. On November 20, 2015, FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). ASU No. 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. 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. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU requires entities measuring inventories under the first-in, first-out or average cost methods to measure inventory at the lower of cost or net realizable value, where net realizable value is "estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation." Inventory was previously required to be measured at the lower of cost or market value, where the measurement of market value had several potential outcomes. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted provided that presentation is applied to the beginning of the fiscal year of adoption. A reporting entity may apply the amendment prospectively. We are currently evaluating the potential impact this new standard may have on our financial statements. On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40)-Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 provides guidance to U.S. GAAP about management’s responsibility to evaluate whether there is a substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU No. 2014-15 (1) defines the term substantial doubt, (2) requires an evaluation of every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plan, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. We do not expect this new standard to have a material impact on our financial statements. On May 28, 2014, the FASB issued 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. In August 2015, the FASB issued ASU No. 2015-14 deferring 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 adoption is permitted only for annual reporting periods beginning after December 15, 2016, including interim periods within that year. 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 Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current-year presentation. These reclassifications had no effect on the reported results of operations. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | At December 31, 2015 and 2014 , inventory consisted of the following (in thousands): 2015 2014 Raw materials $ 20,726 $ 25,984 Finished goods 1,051 — Work in process 5,945 6,640 Total $ 27,722 $ 32,624 |
Schedule of Finite-Lived Intangible Assets By Major Asset Class | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2015 December 31, 2014 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,382 $ 1,123 $ 2,505 $ 1,257 $ 1,248 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,382 $ 1,777 $ 3,159 $ 1,257 $ 1,902 |
Schedule of Indefinite-Lived Intangible Assets By Major Asset Class | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2015 December 31, 2014 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,382 $ 1,123 $ 2,505 $ 1,257 $ 1,248 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,382 $ 1,777 $ 3,159 $ 1,257 $ 1,902 |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Numerator: Net income $ 10,147 $ 14,128 $ 14,390 Denominator for basic net income per common share: Weighted average common shares outstanding 12,567 12,434 12,324 Denominator for diluted net income per share: Weighted average common shares outstanding 12,567 12,434 12,324 Dilutive effect of stock options and restricted shares 226 287 226 Diluted weighted average shares 12,793 12,721 12,550 Earnings per common share: Basic $ 0.81 $ 1.14 $ 1.17 Diluted $ 0.79 $ 1.11 $ 1.15 |
Rental Activity (Tables)
Rental Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Rent Payments for Operating Leases | Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2015 are as follows : Years Ending December 31, (in thousands) 2016 $ 24,284 2017 1,296 Thereafter 121 Total $ 25,701 Remaining future minimum rental payments due under these leases are as follows: Years Ending December 31, (in thousands) 2016 $ 383 2017 407 2018 275 2019 59 Total $ 1,124 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following at December 31, 2015 and 2014 (in thousands): Useful Lives (Years) 2015 2014 Land and building 30 $ 7,025 $ 5,636 Leasehold improvements 39 794 793 Office equipment and furniture 5 1,380 1,376 Software 5 573 573 Machinery and equipment 7 3,105 2,847 Vehicles 3 6,475 6,967 Total 19,352 18,192 Less accumulated depreciation (10,825 ) (10,830 ) Total $ 8,527 $ 7,362 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2015 , 2014 and 2013 , consists of the following (in thousands): 2015 2014 2013 Current provision: Federal $ 6,440 $ 995 $ 69 State 523 195 330 Total current provision 6,963 1,190 399 Deferred provision: Federal (1,846 ) 6,840 7,723 Total deferred provision (1,846 ) 6,840 7,723 Total provision $ 5,117 $ 8,030 $ 8,122 |
Deferred Tax Assets and Liabilities | The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of December 31, 2015 and 2014 , are as follows (in thousands): 2015 2014 Deferred income tax assets: Stock Compensation $ 1,011 $ 1,249 Other 4 80 Total deferred income tax assets $ 1,015 $ 1,329 Deferred income tax liabilities: Property and equipment $ (56,132 ) (58,610 ) Goodwill and other intangible assets (998 ) (1,023 ) Other (343 ) — Total deferred income tax liabilities (57,473 ) (59,633 ) Net deferred income tax liabilities $ (56,458 ) $ (58,304 ) |
Effective Income Tax Rate Reconciliation | The effective tax rate for the years ended December 31, 2015 , 2014 and 2013 , differs from the statutory rate as follows: 2015 2014 2013 Statutory rate 34.0 % 34.0 % 34.0 % State and local taxes 1.5 % 1.5 % 1.7 % Other (2.0 )% 0.7 % 0.4 % Effective rate 33.5 % 36.2 % 36.1 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | A summary of all restricted stock activity as of December 31, 2015 and changes during the year then ended is presented below. Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 99,238 $ 28.22 9.00 $ 2,286 Granted 145,558 19.17 — 2,886 Vested (99,238 ) 28.22 — 2,100 Canceled/Forfeited — — — — Outstanding, December 31, 2015 145,558 $ 19.17 9.12 $ 3,246 |
Stock Options Fair Value Assumptions | Weighted average Black -Scholes fair value assumption during the years ended December 31, are as follows: 2015 2014 2013 Risk free rate 1.56 % 1.96 % 1.02 % Expected life 6 years 6 years 6 years Expected volatility 45.07 % 58.44 % 60.39 % Expected dividend yield — — — |
Summary of Option Activity | A summary of all option activity as of December 31, 2015 and changes during the year then ended 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 4.89 $ 2,786 Granted 50,000 22.90 Exercised (66,000 ) 11.76 481 Canceled/Forfeited (1,500 ) 30.41 — Expired — — Outstanding, December 31, 2015 414,769 $ 19.07 5.08 $ 1,814 Exercisable, December 31, 2015 312,933 $ 17.13 3.93 $ 1,766 |
Summary of Stock Options Outstanding Information | The following table summarizes information about our stock options outstanding at December 31, 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 3.23 $ 11.23 94,852 $ 11.23 $15.71-17.81 92,750 3.78 $ 17.56 92,750 $ 17.56 $17.82-20.48 119,667 4.27 $ 19.58 106,167 $ 19.69 $20.49-33.36 107,500 8.75 $ 26.72 19,164 $ 30.05 414,769 5.08 $ 19.07 312,933 $ 17.13 |
Summary of the Status of Unvested Stock Options | The summary of the status of our unvested stock options as of December 31, 2015 and changes during the year then ended 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 (38,498 ) $ 13.09 Cancelled/Forfeited (1,500 ) $ 16.79 Unvested at December 31, 2015 101,836 $ 12.67 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rent Payments for Operating Leases | Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2015 are as follows : Years Ending December 31, (in thousands) 2016 $ 24,284 2017 1,296 Thereafter 121 Total $ 25,701 Remaining future minimum rental payments due under these leases are as follows: Years Ending December 31, (in thousands) 2016 $ 383 2017 407 2018 275 2019 59 Total $ 1,124 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 2015 Q1 Q2 Q3 Q4 Total Total revenue $ 24,741 $ 24,230 $ 21,193 $ 25,755 $ 95,919 Operating income 5,787 919 3,798 4,643 15,147 Net income 3,694 614 2,562 3,277 10,147 Net income per share - Basic 0.30 0.05 0.20 0.26 0.81 Net income per share - Diluted 0.29 0.05 0.20 0.26 0.79 2014 Q1 Q2 Q3 Q4 Total Total revenue $ 22,322 $ 21,952 $ 25,599 $ 27,101 $ 96,974 Operating income 4,362 5,085 5,840 6,699 21,986 Net income 2,856 3,385 3,883 4,004 14,128 Net income per share - Basic 0.23 0.27 0.31 0.32 1.14 Net income per share - Diluted 0.23 0.27 0.30 0.32 1.11 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenue from External Customer [Line Items] | |||||||||||
Cash equivalents, qualification, maximum original maturity of short-term investments | 3 months | ||||||||||
Customer deposit requirements, large custom contracts, maximum percentage | 50.00% | ||||||||||
Allowance for doubtful accounts | $ 833,000 | $ 507,000 | $ 833,000 | $ 507,000 | |||||||
Total revenue | 25,755,000 | $ 21,193,000 | $ 24,230,000 | $ 24,741,000 | 27,101,000 | $ 25,599,000 | $ 21,952,000 | $ 22,322,000 | 95,919,000 | 96,974,000 | $ 89,248,000 |
Impairment of goodwill | 0 | 0 | |||||||||
Product warranty reserves | 103,000 | 0 | 103,000 | 0 | |||||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Number of business segments | segment | 1 | ||||||||||
Bill and Hold Arrangement | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 4,000,000 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Concentration Risk) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Devon | Sales and Rental Income | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21.00% | 18.00% | 15.00% |
Devon | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Oxy | Sales and Rental Income | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Oxy | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25.00% | 14.00% | |
EOG | Sales and Rental Income | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 18.00% | |
Promatcon | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | ||
Tepatguna | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Inventory) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)compressor | Dec. 31, 2014USD ($)compressor | |
Accounting Policies [Abstract] | ||
Inventory valuation reserves, deductions | $ 12 | $ 225 |
Available-for-sale or rental, compressor units | compressor | 7 | 0 |
Raw materials | $ 20,726 | $ 25,984 |
Finished goods | 1,051 | 0 |
Work in process | 5,945 | 6,640 |
Inventory, net | $ 27,722 | $ 32,624 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 40 years |
Rental Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 15 years |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Intangibles) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Line Items] | |||
Intangibles, net of accumulated amortization | $ 1,777,000 | $ 1,902,000 | |
Amortization expense | 125,000 | 125,000 | $ 130,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,016 | 125,000 | ||
2,017 | 125,000 | ||
2,018 | 125,000 | ||
2,019 | 125,000 | ||
2,020 | 125,000 | ||
2,021 | 125,000 | ||
2,022 | 125,000 | ||
2,023 | 125,000 | ||
2,024 | 125,000 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Value | 3,159,000 | 3,159,000 | |
Accumulated Amortization | 1,382,000 | 1,257,000 | |
Net Book Value | 1,777,000 | 1,902,000 | |
Impairment of intangible assets | 0 | 0 | |
Trade Name | |||
Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset, gross carrying value | 654,000 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Value | 654,000 | 654,000 | |
Accumulated Amortization | 0 | 0 | |
Net Book Value | $ 654,000 | $ 654,000 | |
Developed Technology | |||
Intangible Assets [Line Items] | |||
Intangible assets, useful life | 20 years | 20 years | |
Intangible assets, weighted average remaining life | 9 years | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Value | $ 2,505,000 | $ 2,505,000 | |
Accumulated Amortization | 1,382,000 | 1,257,000 | |
Net Book Value | $ 1,123,000 | $ 1,248,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Per Share Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net income | $ 3,277 | $ 2,562 | $ 614 | $ 3,694 | $ 4,004 | $ 3,883 | $ 3,385 | $ 2,856 | $ 10,147 | $ 14,128 | $ 14,390 |
Denominator for basic net income per common share: | |||||||||||
Weighted average common shares outstanding, Basic (in shares) | 12,567,000 | 12,434,000 | 12,324,000 | ||||||||
Denominator for diluted net income per share: | |||||||||||
Weighted average common shares outstanding, Basic (in shares) | 12,567,000 | 12,434,000 | 12,324,000 | ||||||||
Dilutive effect of stock options and restricted shares (in shares) | 226,000 | 287,000 | 226,000 | ||||||||
Weighted average common shares outstanding, Diluted (in shares) | 12,793,000 | 12,721,000 | 12,550,000 | ||||||||
Earnings per common share: | |||||||||||
Earnings per share - Basic (in dollars per share) | $ 0.26 | $ 0.20 | $ 0.05 | $ 0.30 | $ 0.32 | $ 0.31 | $ 0.27 | $ 0.23 | $ 0.81 | $ 1.14 | $ 1.17 |
Earnings per share - Diluted (in dollars per share) | $ 0.26 | $ 0.20 | $ 0.05 | $ 0.29 | $ 0.32 | $ 0.30 | $ 0.27 | $ 0.23 | $ 0.79 | $ 1.11 | $ 1.15 |
Stock Options | |||||||||||
Earnings per common share: | |||||||||||
Anti-dilutive securities | 107,500 | 55,000 | 0 | ||||||||
Range of exercise prices, lower limit | $ 22.90 | $ 30.41 | |||||||||
Range of exercise prices, upper limit | $ 33.36 | $ 33.36 |
Rental Activity (Details)
Rental Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
2,016 | $ 24,284 | ||
2,017 | 1,296 | ||
Thereafter | 121 | ||
Total | $ 25,701 | ||
Minimum | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rental arrangements, original term | 6 months | ||
Maximum | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Rental arrangements, original term | 2 years | ||
Rental Equipment | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 21,000 | $ 19,800 | $ 16,400 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 19,352 | $ 18,192 | |
Less accumulated depreciation | (10,825) | (10,830) | |
Property and equipment, net | 8,527 | 7,362 | |
Land and building | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 7,025 | 5,636 | |
Useful lives | 30 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 794 | 793 | |
Useful lives | 39 years | ||
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,380 | 1,376 | |
Useful lives | 5 years | ||
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 573 | 573 | |
Useful lives | 5 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,105 | 2,847 | |
Useful lives | 7 years | ||
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 6,475 | 6,967 | |
Useful lives | 3 years | ||
Property and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,600 | $ 1,600 | $ 1,600 |
Retirement of Long-Lived Asse34
Retirement of Long-Lived Assets (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)compressorhp | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
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 | $ 4,370 | $ 0 | $ 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 demanded type, configuration, make or model | compressor | 258 | |||
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 | |||
Rental Compressor Unit | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Estimated fair value of long-lived assets | $ 967 |
Credit Facility (Details)
Credit Facility (Details) - Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2015USD ($)loan | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 30,000,000 |
Potential increase in borrowing capacity | 20,000,000 |
Potential 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% |
Borrowing base amount available | $ 29,500,000 |
Line of credit | $ 417,000 |
Weighted average interest rate | 1.69% |
LIBOR-based Rate | |
Line of Credit Facility [Line Items] | |
Variable rate, applicable margin | 1.50% |
CB Floating Rate | |
Line of Credit Facility [Line Items] | |
Variable rate, applicable margin | 1.25% |
Maximum | |
Line of Credit Facility [Line Items] | |
Maximum leverage ratio allowed | 2.50 |
Default trigger, certain defaults of other company indebtedness, amount | $ 50,000 |
Default trigger, rendering of certain judgments, amount | $ 150,000 |
Maximum | LIBOR-based Rate | |
Line of Credit Facility [Line Items] | |
Reference rate, number of allowable LIBOR-based borrowings outstanding | loan | 3 |
Minimum | |
Line of Credit Facility [Line Items] | |
Minimum commitment coverage ratio allowed | 2 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - USD ($) | Jul. 30, 2008 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 |
Other Long-term Liabilities | ||||||
Long-term liability | $ 275,000 | |||||
Payments to settle deferred revenue liability | $ 52,000 | |||||
Gain on settlement of deferred revenue liability | $ 223,000 | |||||
Paint and Coatings | ||||||
Other Long-term Liabilities | ||||||
Long-term purchase commitment, amount | $ 4,800,000 | |||||
Cash received from supplier as discount toward future purchases | 300,000 | |||||
Liability related to deferred discount | $ 300,000 | $ 129,000 | $ 155,000 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision: | |||
Federal | $ 6,440 | $ 995 | $ 69 |
State | 523 | 195 | 330 |
Total current provision | 6,963 | 1,190 | 399 |
Deferred provision: | |||
Federal | (1,846) | 6,840 | 7,723 |
Total deferred provision | (1,846) | 6,840 | 7,723 |
Total income tax expense | $ 5,117 | $ 8,030 | $ 8,122 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets: | ||
Stock Compensation | $ 1,011 | $ 1,249 |
Other | 4 | 80 |
Total deferred income tax assets | 1,015 | 1,329 |
Deferred income tax liabilities: | ||
Property and equipment | (56,132) | (58,610) |
Goodwill and other intangible assets | (998) | (1,023) |
Other | (343) | 0 |
Total deferred income tax liabilities | (57,473) | (59,633) |
Net deferred income tax liabilities | $ (56,458) | $ (58,304) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 34.00% | 34.00% | 34.00% |
State and local taxes | 1.50% | 1.50% | 1.70% |
Other | (2.00%) | 0.70% | 0.40% |
Effective rate | 33.50% | 36.20% | 36.10% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Dec. 31, 2012USD ($) |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | $ 3.2 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Narrative) (Details) - Restricted Stock - USD ($) $ in Thousands | Mar. 19, 2015 | Jun. 03, 2014 | Jan. 23, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 145,558 | |||||
Share-based compensation expense | $ 2,944 | $ 2,818 | $ 1,485 | |||
Total unrecognized compensation expense | $ 457 | |||||
Unrecognized compensation cost related to stock options, weighted average period for recognition | 1 year | |||||
Vice President of Technical Services | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 20,000 | |||||
Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 20,000 | |||||
Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 21,968 | |||||
Award vesting period | 1 year | |||||
Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 83,590 | |||||
Award vesting period | 1 year | |||||
2009 Restricted Stock/Units Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized | 500,000 | |||||
Number of shares authorized | 800,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 361,394 |
Stock-Based Compensation (Res43
Stock-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | ||
Outstanding, December 31, 2014 | 99,238 | |
Granted | 145,558 | |
Vested | (99,238) | |
Canceled/Forfeited | 0 | |
Outstanding, December 31, 2015 | 145,558 | 99,238 |
Weighted Average Grant Date Fair Value | ||
Outstanding, December 31, 2014 (in dollars per share) | $ 28.22 | |
Granted (in dollars per share) | 19.17 | |
Vested (in dollars per share) | 28.22 | |
Canceled/Forfeited (in dollars per share) | 0 | |
Outstanding, December 31, 2015 (in dollars per share) | $ 19.17 | $ 28.22 |
Weighted Average Remaining Contractual Life (years) | ||
Weighted Average Remaining Contractual Life (years) | 9 years 1 month 14 days | 9 years 1 day |
Aggregate Intrinsic Value (in thousands) | ||
Aggregate Intrinsic Value, Outstanding | $ 3,246 | $ 2,286 |
Aggregate Intrinsic Value, Granted | 2,886 | |
Aggregate Intrinsic Value, Vested | $ 2,100 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Narrative) (Details) $ / shares in Units, $ in Thousands | Jun. 16, 2009shares | Apr. 30, 2015Option$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | Dec. 31, 1998shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | Option | 1 | |||||
Options granted in period (in shares) | 50,000 | |||||
Options granted in period, weighted average exercise price (in dollars per share) | $ / shares | $ 22.90 | |||||
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares | $ 10.33 | $ 16.56 | $ 10.30 | |||
Total intrinsic value of options exercised | $ | $ 481 | $ 48 | $ 458 | |||
Proceeds from exercise of stock options | $ | 776 | 59 | 829 | |||
Unrecognized compensation cost related to stock options | $ | 722 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 601 | $ 426 | $ 198 | |||
Unrecognized compensation cost related to stock options, weighted average period for recognition | 3 years | |||||
Stock Options | 1998 Stock Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Award expiration period | 10 years | |||||
Stock Options | Common Stock | 1998 Stock Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 750,000 | 550,000 | ||||
Additional shares authorized | 200,000 | |||||
Number of shares available for grant | 93,419 | |||||
Non-Executive Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Options granted in period (in shares) | 50,000 | |||||
Options granted in period, weighted average exercise price (in dollars per share) | $ / shares | $ 22.90 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk free rate | 1.56% | 1.96% | 1.02% |
Expected life | 6 years | 6 years | 6 years |
Expected volatility | 45.07% | 58.44% | 60.39% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation (Sto46
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Stock Options | |||
Outstanding, beginning of period (in shares) | 432,269 | ||
Granted (in shares) | 50,000 | ||
Exercised (in shares) | (66,000) | ||
Canceled/Forfeited (in shares) | (1,500) | ||
Expired (in shares) | 0 | ||
Outstanding, end of period (in shares) | 414,769 | 432,269 | |
Exercisable (in shares) | 312,933 | ||
Weighted Average Exercise Price | |||
Outstanding, weighted average exercise price, beginning of period (in dollars per share) | $ 17.55 | ||
Granted, weighted average exercise price (in dollars per share) | 22.90 | ||
Exercised, weighted average exercise price (in dollars per share) | 11.76 | ||
Canceled/Forfeited, weighted average exercise price (in dollars per share) | 30.41 | ||
Expired, weighted average exercise price (in dollars per share) | 0 | ||
Outstanding, weighted average exercise price, end of period (in dollars per share) | 19.07 | $ 17.55 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 17.13 | ||
Weighted Average Remaining Contractual Life (years) | |||
Outstanding, weighted average remaining contractual life | 5 years 29 days | 4 years 8 months 80 days | |
Exercisable, weighted average remaining contractual life | 3 years 10 months 36 days | ||
Aggregate Intrinsic Value | |||
Outstanding, aggregate intrinsic value | $ 1,814 | $ 2,786 | |
Exercised, aggregate intrinsic value | 481 | $ 48 | $ 458 |
Canceled/Forfeited, aggregate intrinsic value | 0 | ||
Exercisable, aggregate intrinsic value | $ 1,766 |
Stock-Based Compensation (Sto47
Stock-Based Compensation (Stock Options by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 414,769 |
Options outstanding, weighted average remaining contractual life | 5 years 29 days |
Options outstanding, weighted average exercise price | $ 19.07 |
Options exercisable, shares | shares | 312,933 |
Options exercisable, weighted average exercise price | $ 17.13 |
Range of Exercise Prices: $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 | 3 years 1 month 55 days |
Options outstanding, weighted average exercise price | $ 11.23 |
Options exercisable, shares | shares | 94,852 |
Options exercisable, weighted average exercise price | $ 11.23 |
Range of exercise prices, lower limit | 0.01 |
Range of exercise prices, upper limit | $ 15.70 |
Range of Exercise Prices: $15.71 - 17.81 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 92,750 |
Options outstanding, weighted average remaining contractual life | 3 years 8 months 41 days |
Options outstanding, weighted average exercise price | $ 17.56 |
Options exercisable, shares | shares | 92,750 |
Options exercisable, weighted average exercise price | $ 17.56 |
Range of exercise prices, lower limit | 15.71 |
Range of exercise prices, upper limit | $ 17.81 |
Range of Exercise Prices: $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 | 4 years 2 months 36 days |
Options outstanding, weighted average exercise price | $ 19.58 |
Options exercisable, shares | shares | 106,167 |
Options exercisable, weighted average exercise price | $ 19.69 |
Range of exercise prices, lower limit | 17.82 |
Range of exercise prices, upper limit | $ 20.48 |
Range of Exercise Prices: $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 | 8 years 7 months 60 days |
Options outstanding, weighted average exercise price | $ 26.72 |
Options exercisable, shares | shares | 19,164 |
Options exercisable, weighted average exercise price | $ 30.05 |
Range of exercise prices, lower limit | 20.49 |
Range of exercise prices, upper limit | $ 33.36 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Unvested Stock Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Nonvested Awards, Stock Options, Outstanding [Roll Forward] | |||
Unvested, beginning of period (in shares) | 91,834 | ||
Granted (in shares) | 50,000 | ||
Vested (in shares) | (38,498) | ||
Cancelled/Forfeited (in shares) | (1,500) | ||
Unvested, end of period (in shares) | 101,836 | 91,834 | |
Employee Service Share-based Compensation, Nonvested Awards, Stock Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Unvested, weighted average grant date fair value, beginning of period (in dollars per share) | $ 14.19 | ||
Granted, weighted average grant date fair value (in dollars per share) | 10.33 | $ 16.56 | $ 10.30 |
Vested, weighted average grant date fair value (in dollars per share) | 13.09 | ||
Cancelled/Forfeited, weighted average grant date fair value (in dollars per share) | 16.79 | ||
Unvested, weighted average grant date fair value, end of period (in dollars per share) | $ 12.67 | $ 14.19 |
Commitments and Contingencies49
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
401(k) plan, minimum eligibility age | 18 years | ||
401(k) plan, requisite service period | 6 months | ||
401(k) plan, maximum annual contribution per employee, percent | 100.00% | ||
401(k) plan, employer's matching contribution, annual vesting percentage | 20.00% | ||
401(k) plan, employer contribution, ultimate vesting percentage | 100.00% | ||
401(k) plan, employer's matching contribution, vesting term | 6 years | ||
401(k) plan, employer contribution amount | $ 387 | $ 296 | $ 294 |
Operating leases, maximum term | 5 years | ||
Operating leases, rent expense | $ 375 | $ 380 | $ 358 |
Commitments and Contingencies50
Commitments and Contingencies (Future Lease Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 383 |
2,017 | 407 |
2,018 | 275 |
2,019 | 59 |
Total | $ 1,124 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue | $ 25,755 | $ 21,193 | $ 24,230 | $ 24,741 | $ 27,101 | $ 25,599 | $ 21,952 | $ 22,322 | $ 95,919 | $ 96,974 | $ 89,248 |
Operating income | 4,643 | 3,798 | 919 | 5,787 | 6,699 | 5,840 | 5,085 | 4,362 | 15,147 | 21,986 | 22,020 |
Net income | $ 3,277 | $ 2,562 | $ 614 | $ 3,694 | $ 4,004 | $ 3,883 | $ 3,385 | $ 2,856 | $ 10,147 | $ 14,128 | $ 14,390 |
Net income per share - Basic (in dollars per share) | $ 0.26 | $ 0.20 | $ 0.05 | $ 0.30 | $ 0.32 | $ 0.31 | $ 0.27 | $ 0.23 | $ 0.81 | $ 1.14 | $ 1.17 |
Net income per share - Diluted (in dollars per share) | $ 0.26 | $ 0.20 | $ 0.05 | $ 0.29 | $ 0.32 | $ 0.30 | $ 0.27 | $ 0.23 | $ 0.79 | $ 1.11 | $ 1.15 |