Natural Gas Services (NGS) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	NATURAL GAS SERVICES GROUP INC
Entity Central Index Key	1,084,991
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		12,867,226

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 52,166	$ 35,532
Trade accounts receivable, net of allowance for doubtful accounts of $693 and $833, respectively	5,012	9,107
Inventory, net	24,675	27,722
Prepaid income taxes	1,795	81
Prepaid expenses and other	619	762
Total current assets	84,267	73,204
Rental equipment, net of accumulated depreciation of $121,402 and $111,293, respectively	184,032	191,933
Property and equipment, net of accumulated depreciation of $11,335 and $10,825 respectively	8,005	8,527
Goodwill	10,039	10,039
Intangibles, net of accumulated amortization of $1,445 and $1,382, respectively	1,714	1,777
Other assets	207	73
Total assets	288,264	285,553
Current Liabilities:
Accounts payable	690	1,226
Accrued liabilities	2,177	3,071
Deferred income	557	271
Total current liabilities	3,424	4,568
Line of credit, non-current portion	417	417
Deferred income tax liability	55,688	56,458
Other long-term liabilities	232	129
Total liabilities	59,761	61,572
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; 12,717 and 12,603 shares issued and outstanding, respectively	127	126
Additional paid-in capital	99,031	98,310
Retained earnings	129,345	125,545
Total stockholders' equity	228,503	223,981
Total liabilities and stockholders' equity	$ 288,264	$ 285,553

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Allowance for doubtful accounts	$ 693	$ 833
Noncurrent Assets:
Accumulated depreciation, rental equipment	121,402	111,293
Accumulated depreciation, property and equipment	11,335	10,825
Accumulated amortization, intangibles	$ 1,445	$ 1,382
Stockholders’ Equity:
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	12,717,000	12,603,000
Common stock, shares outstanding	12,717,000	12,603,000

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Rental income	$ 14,655,000	$ 19,712,000	$ 31,063,000	$ 40,315,000
Sales, net	2,300,000	4,292,000	7,210,000	8,204,000
Service and maintenance income	239,000	226,000	497,000	452,000
Total revenue	17,194,000	24,230,000	38,770,000	48,971,000
Operating costs and expenses:
Cost of rentals, exclusive of depreciation stated separately below	5,411,000	7,008,000	11,105,000	14,735,000
Cost of sales, exclusive of depreciation stated separately below	2,236,000	3,153,000	6,168,000	5,966,000
Cost of service and maintenance	85,000	43,000	196,000	81,000
Loss on retirement of rental equipment	0	4,373,000	0	4,373,000
Selling, general and administrative expense	2,152,000	2,876,000	4,721,000	5,464,000
Depreciation and amortization	5,437,000	5,858,000	10,940,000	11,646,000
Total operating costs and expenses	15,321,000	23,311,000	33,130,000	42,265,000
Operating income	1,873,000	919,000	5,640,000	6,706,000
Other income (expense):
Interest expense	(2,000)	(3,000)	(4,000)	(6,000)
Other income (expense)	(7,000)	5,000	12,000	47,000
Total other income (expense), net	(9,000)	2,000	8,000	41,000
Income before provision for income taxes	1,864,000	921,000	5,648,000	6,747,000
Provision for income taxes	605,000	307,000	1,848,000	2,439,000
Net income	$ 1,259,000	$ 614,000	$ 3,800,000	$ 4,308,000
Earnings per share:
Basic (in USD per share)	$ 0.10	$ 0.05	$ 0.30	$ 0.34
Diluted (in USD per share)	$ 0.10	$ 0.05	$ 0.29	$ 0.34
Weighted average shares outstanding:
Basic (in shares)	12,709	12,579	12,678	12,542
Diluted (in shares)	12,936	12,830	12,887	12,774

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,800	$ 4,308
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,940	11,646
Deferred income taxes	(770)	(1,877)
Stock-based compensation	1,186	1,694
Bad debt allowance	61	371
Inventory allowance	32	70
Gain on sale of assets	(25)	(50)
Loss on retirement of rental equipment	0	4,373
Gain on company owned life insurance	(4)	0
Changes in current assets and liabilities:
Trade accounts receivables	4,034	594
Inventory	3,179	4,959
Prepaid expenses	(1,532)	5,264
Accounts payable and accrued liabilities	(1,430)	(7,398)
Current income tax liability	0	2,436
Deferred income	286	(1,450)
Other	84	33
Tax benefit from equity compensation	(39)	0
NET CASH PROVIDED BY OPERATING ACTIVITIES	19,802	24,973
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(2,618)	(9,563)
Purchase of company owned life insurance	(105)	0
Proceeds from sale of property and equipment	25	82
NET CASH USED IN INVESTING ACTIVITIES	(2,698)	(9,481)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments from other long-term liabilities, net	(6)	(14)
Proceeds from exercise of stock options	406	550
Taxes paid related to net share settlement of equity awards	(909)	(677)
Tax benefit from equity compensation	39	0
NET CASH USED IN FINANCING ACTIVITIES	(470)	(141)
NET CHANGE IN CASH AND CASH EQUIVALENTS	16,634	15,351
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	35,532	6,181
CASH AND CASH EQUIVALENTS AT END OF PERIOD	52,166	21,532
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	4	6
Income taxes paid	4,435	1,090
NON-CASH TRANSACTIONS
Transfer of rental equipment components to inventory	164	969
Transfer from inventory to property and equipment	$ 0	$ 1,319

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies These notes apply to the unaudited condensed consolidated financial statements of Natural Gas Services Group, Inc. a Colorado corporation (the "Company", “NGSG”, "Natural Gas Services Group", "we" or "our"). The accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, which are necessary to make our financial position at June 30, 2016 and the results of our operations for the three months and six months ended June 30, 2016 and 2015 not misleading. As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying consolidated financial statements do not include all disclosures normally required by generally accepted accounting principles in the United States of America (GAAP). These financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 on file with the SEC. In our opinion, the consolidated financial statements are a fair presentation of the financial position, results of operations and cash flows for the periods presented. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2016 . 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 must be 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 June 30, 2016 , we recognized revenue of $4.0 million under these bill and hold arrangements. Exchange and rebuilt compressor revenue is recognized when 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. Fair Value of Financial Instruments Our financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, deferred compensation plan (cash portion) and our line of credit. Pursuant to ASC 820 (Accounting Standards Codification), the fair value of our cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their fair values because of their nature and relatively short maturity dates or durations. Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU identifies areas for simplification involving several areas of accounting for share-based compensation arrangements, including the income tax impact, classification of awards as equity or liabilities, classifications on the statement of cash flows and forfeitures. 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. 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. 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. In March 2016, the FASB issued ASU 2016-08 which further clarifies the guidance on the principal versus agent considerations within ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 to clarify the assessment of the likelihood that revenue will be collected from a contract ,the guidance for recognizing sales taxes and similar taxes and the timing for measuring customers payments that are not in cash within ASU 2014-09. 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.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock Options: A summary of option activity under our 1998 Stock Option Plan as of December 31, 2015 , and changes during the six months ended June 30, 2016 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, 2015 414,769 $ 19.07 5.08 $ 1,814 Exercised (25,750 ) 15.77 154 Outstanding, June 30, 2016 389,019 $ 19.29 4.74 $ 1,815 Exercisable, June 30, 2016 333,187 $ 18.22 4.13 $ 1,815 The following table summarizes information about our stock options outstanding at June 30, 2016 : 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 79,352 3.15 $ 10.64 79,352 $ 10.64 $15.71-17.81 85,750 3.24 17.55 85,750 17.55 $17.82-20.48 116,417 3.69 19.61 116,417 19.61 $20.49-33.36 107,500 8.25 26.72 51,668 27.85 389,019 4.74 $ 19.29 333,187 $ 18.22 The summary of the status of our unvested stock options as of December 31, 2015 and changes during the six months ended June 30, 2016 is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2015 101,836 $ 12.67 Vested (46,004 ) 12.55 Unvested at June 30, 2016 55,832 $ 12.77 As of June 30, 2016 , there was $481,333 of unrecognized compensation cost related to unvested options. Such cost is expected to be recognized over a weighted-average period of 1.2 years. Total compensation expense for stock options was $277,549 and $265,258 for the six months ended June 30, 2016 and 2015 , respectively. Restricted Stock: In accordance with the Company's employment agreement with Stephen Taylor, the Company's Chief Executive Officer, the Compensation Committee reviewed his performance in determining the issuance of restricted common stock. Based on this review which included consideration of the Company's 2015 performance, Mr. Taylor, was awarded 75,915 restricted shares on January 6, 2016 , which vest over two years , in equal installments, beginning January 6, 2017. On April 6, 2016 , the Compensation Committee awarded 20,000 shares of restricted common stock to each of G. Larry Lawrence, our CFO, and James Hazlett, our Vice President of Technical Services. The restricted shares to Messrs. Hazlett and Lawrence vest over two years , in equal installments, beginning April 6, 2017. We also awarded and issued 23,536 shares of restricted common stock to our Board of Directors as partial payment for 2016 directors' fees. The restricted stock issued to our directors vests over one year, in quarterly installments, beginning March 31, 2017 . Total compensation expense related to restricted stock awards was $908,879 and $1,492,142 for the six months ended June 30, 2016 and 2015 , respectively. As of June 30, 2016 , there was a total of $2,518,209 of unrecognized compensation expense related to these shares which is expected to be recognized over the next two years.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventory	Inventory Our inventory, net of allowance for obsolescence of $ 44,000 and $12,000 at June 30, 2016 and December 31, 2015 , respectively, consisted of the following amounts: June 30, 2016 December 31, 2015 (in thousands) Raw materials $ 19,736 $ 20,726 Finished Goods 1,029 1,051 Work in process 3,910 5,945 $ 24,675 $ 27,722 During the six months ended June 30, 2016 and 2015, there were no write-offs of obsolete inventory against the allowance for obsolescence.

Retirement of Long-Lived Assets

Retirement of Long-Lived Assets	6 Months Ended
	Jun. 30, 2016
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 aggregate fair value of approximately $967,000 for the key components being kept. The retirement was recorded in second quarter of 2015. No retirements have been made in 2016.

Deferred Compensation Plans

Deferred Compensation Plans	6 Months Ended
	Jun. 30, 2016
Postemployment Benefits [Abstract]
Deferred Compensation Plans	Deferred Compensation Plans Effective January 1, 2016, the Company established a non-qualified deferred compensation plan for executive officers, directors and certain eligible employees. The assets of the deferred compensation plan are held in a rabbi trust and are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. The plan allows for deferral up to 90% of a participant’s base salary, bonus, commissions, director fees and restricted stock awards. A Company owned life insurance policy held in a rabbi trust is utilized as a source of funding for the plan. The cash surrender value of the life insurance policy is $109,000 as of June 30, 2016 , with a gain related to the policy of $4,000 reported in other income in our condensed consolidated income statement for the six months ending June 30, 2016 . For deferrals of base salary, bonus, commissions and director fees, settlement payments are made to participants in cash, either in a lump sum or in periodic installments. The deferred obligation to pay the deferred compensation and the deferred director fees is adjusted to reflect the positive or negative performance of investment measurement options selected by each participant and was $109,000 as of June 30, 2016 . The deferred obligation is included in other long-term liabilities in the condensed consolidated balance sheet. For deferrals of restricted stock, the plan does not allow for diversification, therefore, distributions are paid in shares and the obligation is carried at grant value. As of June 30, 2016 , no shares had been deferred.

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Credit Facility	Credit Facility We have a senior secured revolving credit agreement the "Amended Credit Agreement" with JP Morgan Chase Bank, N.A (the "Lender") with an aggregate commitment of $30 million , subject to collateral availability. We also have a right to request from the Lender, on an uncommitted basis, an increase of up to $20 million on the aggregate commitment (which could potentially increase the commitment amount to $50 million ). Borrowing Base . At any time before the maturity of the Amended Credit Agreement, we may draw, repay and re-borrow amounts available under the borrowing base up to the maximum aggregate availability discussed above. Generally, the borrowing base equals the sum of (a) 80% of our eligible accounts receivable plus (b) 50% of the book value of our eligible general inventory (not to exceed 50% of the commitment amount at the time) plus (c) 75% of the book value of our eligible equipment inventory. The Lender may adjust the borrowing base components if material deviations in the collateral are discovered in future audits of the collateral. We had $ 29.5 million borrowing base availability at June 30, 2016 under the terms of our Amended Credit Agreement. Interest and Fees . Under the terms of the Amended Credit Agreement, we have the option of selecting the applicable variable rate for each revolving loan, or portion thereof, of either (a) LIBOR multiplied by the Statutory Reserve Rate (as defined in the Amended Credit Agreement), with respect to this rate, for Eurocurrency funding, plus the Applicable Margin (“LIBOR-based”), or (b) CB Floating Rate, which is the Lender's Prime Rate less the Applicable Margin; provided, however, that no more than three LIBOR-based borrowings under the agreement may be outstanding at any one time. For purposes of the LIBOR-based interest rate, the Applicable Margin is 1.50% . For purposes of the CB Floating Rate, the Applicable Margin is 1.50% . For the six month period ended June 30, 2016 , our weighted average interest rate was 1.75% . Accrued interest is payable monthly on outstanding principal amounts, provided that accrued interest on LIBOR-based loans is payable at the end of each interest period, but in no event less frequently than quarterly. In addition, fees and expenses are payable in connection with our requests for letters of credit (generally equal to the Applicable Margin for LIBOR-related borrowings multiplied by the face amount of the requested letter of credit) and administrative and legal costs. Maturity . The maturity date of the Amended Credit Agreement is December 31, 2017 , at which time all amounts borrowed under the agreement will be due and outstanding letters of credit must be cash collateralized. The agreement may be terminated early upon our request or the occurrence of an event of default. Security . The obligations under the Amended Credit Agreement are secured by a first priority lien on all of our inventory and accounts and leases receivables, along with a first priority lien on a variable number of our leased compressor equipment the book value of which must be maintained at a minimum of 2.00 to 1.00 commitment coverage ratio (such ratio being equal to (i) the amount of the borrowing base as of such date to (ii) the amount of the commitment as of such date.) Covenants. The Amended Credit Agreement contains customary representations and warranties, as well as covenants which, among other things, limit our ability to incur additional indebtedness and liens; enter into transactions with affiliates; make acquisitions in excess of certain amounts; pay dividends; redeem or repurchase capital stock or senior notes; make investments or loans; make negative pledges; consolidate, merge or effect asset sales; or change the nature of our business. In addition, we also have certain financial covenants that require us to maintain on a consolidated basis a leverage ratio less than or equal to 2.50 to 1.00 as of the last day of each fiscal quarter. Events of Default and Acceleration. The Amended Credit Agreement contains customary events of default for credit facilities of this size and type, and includes, without limitation, payment defaults; defaults in performance of covenants or other agreements contained in the loan documents; inaccuracies in representations and warranties; certain defaults, termination events or similar events; certain defaults with respect to any other Company indebtedness in excess of $50,000 ; certain bankruptcy or insolvency events; the rendering of certain judgments in excess of $150,000 ; certain ERISA events; certain change in control events and the defectiveness of any liens under the secured revolving credit facility. Obligations under the Amended Credit Agreement may be accelerated upon the occurrence of an event of default. As of June 30, 2016 , 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 June 30, 2016 and December 31, 2015 our outstanding balance on the line of credit was $417,000 .

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation (in thousands, except per share data) . Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income $ 1,259 $ 614 $ 3,800 $ 4,308 Denominator for basic net income per common share: Weighted average common shares outstanding 12,709 12,579 12,678 12,542 Denominator for diluted net income per share: Weighted average common shares outstanding 12,709 12,579 12,678 12,542 Dilutive effect of stock options and restricted stock 227 251 209 232 Diluted weighted average shares 12,936 12,830 12,887 12,774 Earnings per common share: Basic $ 0.10 $ 0.05 $ 0.30 $ 0.34 Diluted $ 0.10 $ 0.05 $ 0.29 $ 0.34 In the three and six months ended June 30, 2016 , options to purchase 107,500 shares of common stock with exercise prices ranging from $22.90 to $33.36 were not included in the computation of dilutive income per share, due to their antidilutive effect. In the three months ended June 30, 2015, options to purchase 52,500 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. In the six months ended June 30, 2015, options to purchase 107,500 shares of common stock with exercise prices ranging from $22.90 to $33.36 were not included in the computation of dilutive income per share, due to their antidilutive effect.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information ASC 280-10-50, “Operating Segments", defines the characteristics of an operating segment as a) being engaged in business activity from which it may earn revenue and incur expenses, b) being reviewed by the Company's chief operating decision maker (CODM) for decisions about resources to be allocated and assess its performance and c) having discrete financial information. Although we look at our products to analyze the nature of our revenue, other financial information, such as certain costs and expenses, net income and EBITDA are not captured or analyzed by these categories. Our CODM does not make resource allocation decisions or access the performance of the business based on these categories, but rather in the aggregate. Based on this, management believes that it operates in one business segment. In their analysis of product lines as potential operating segments, management also considered ASC 280-10-50-11, “Aggregation Criteria”, which allows for the aggregation of operating segments if the segments have similar economic characteristics and if the segments are similar in each of the following areas: • The nature of the products and services; • The nature of the production processes; • The type or class of customer for their products and services; • The methods used to distribute their products or provide their services; and • The nature of the regulatory environment, if applicable. We are engaged in the business of designing and manufacturing compressors and flares. Our compressors and flares are sold and rented to our customers. In addition, we provide service and maintenance on compressors in our fleet and to third parties. These business activities are similar in all geographic areas. Our manufacturing process is essentially the same for the entire Company and is performed in-house at our facilities in Midland, Texas and Tulsa, Oklahoma. Our customers primarily consist of entities in the business of producing natural gas and crude oil. The maintenance and service of our products is consistent across the entire Company and is performed via an internal fleet of vehicles. The regulatory environment is similar in every jurisdiction in that the most impacting regulations and practices are the result of federal energy policy. In addition, the economic characteristics of each customer arrangement are similar in that we maintain policies at the corporate level. For the three months ended June 30, 2016 (in thousands): Rental Sales Service & Maintenance Corporate Total Revenue $ 14,655 $ 2,300 $ 239 $ — $ 17,194 Operating costs and expenses 5,411 2,236 85 7,589 15,321 Total other expense, net — — (9 ) (9 ) Income before provision for income taxes $ 9,244 $ 64 $ 154 $ (7,598 ) $ 1,864 For the three months ended June 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 19,712 $ 4,292 $ 226 $ — $ — $ 24,230 Operating costs and expenses 7,008 3,153 43 4,373 8,734 23,311 Total other income, net — — — 2 2 Income before provision for income taxes $ 12,704 $ 1,139 $ 183 $ (4,373 ) $ (8,732 ) $ 921 For the six months ended June 30, 2016 (in thousands): Rental Sales Service & Maintenance Corporate Total Revenue $ 31,063 $ 7,210 $ 497 $ — $ 38,770 Operating costs and expenses 11,105 6,168 196 15,661 33,130 Total other income, net — — — 8 8 Income before provision for income taxes $ 19,958 $ 1,042 $ 301 $ (15,653 ) $ 5,648 For the six months ended June 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 40,315 $ 8,204 $ 452 $ — $ — $ 48,971 Operating costs and expenses 14,735 5,966 81 4,373 17,110 42,265 Total other income, net — — — — 41 41 Income before provision for income taxes $ 25,580 $ 2,238 $ 371 $ (4,373 ) $ (17,069 ) $ 6,747

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, we are a party to various legal proceedings in the ordinary course of our business. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from these actions will not have a material adverse effect on our financial position, results of operations or cash flow. We are not currently a party to any material legal proceedings, and we are not aware of any threatened material litigation.

Basis of Presentation and Sum15

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
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 must be 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 June 30, 2016 , we recognized revenue of $4.0 million under these bill and hold arrangements. Exchange and rebuilt compressor revenue is recognized when 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.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Our financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, deferred compensation plan (cash portion) and our line of credit. Pursuant to ASC 820 (Accounting Standards Codification), the fair value of our cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their fair values because of their nature and relatively short maturity dates or durations.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU identifies areas for simplification involving several areas of accounting for share-based compensation arrangements, including the income tax impact, classification of awards as equity or liabilities, classifications on the statement of cash flows and forfeitures. 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. 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. 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. In March 2016, the FASB issued ASU 2016-08 which further clarifies the guidance on the principal versus agent considerations within ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 to clarify the assessment of the likelihood that revenue will be collected from a contract ,the guidance for recognizing sales taxes and similar taxes and the timing for measuring customers payments that are not in cash within ASU 2014-09. 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.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Option Activity	A summary of option activity under our 1998 Stock Option Plan as of December 31, 2015 , and changes during the six months ended June 30, 2016 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, 2015 414,769 $ 19.07 5.08 $ 1,814 Exercised (25,750 ) 15.77 154 Outstanding, June 30, 2016 389,019 $ 19.29 4.74 $ 1,815 Exercisable, June 30, 2016 333,187 $ 18.22 4.13 $ 1,815
Summary of Stock Options Outstanding	The following table summarizes information about our stock options outstanding at June 30, 2016 : 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 79,352 3.15 $ 10.64 79,352 $ 10.64 $15.71-17.81 85,750 3.24 17.55 85,750 17.55 $17.82-20.48 116,417 3.69 19.61 116,417 19.61 $20.49-33.36 107,500 8.25 26.72 51,668 27.85 389,019 4.74 $ 19.29 333,187 $ 18.22
Status of Unvested Stock Options	The summary of the status of our unvested stock options as of December 31, 2015 and changes during the six months ended June 30, 2016 is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2015 101,836 $ 12.67 Vested (46,004 ) 12.55 Unvested at June 30, 2016 55,832 $ 12.77

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Our inventory, net of allowance for obsolescence of $ 44,000 and $12,000 at June 30, 2016 and December 31, 2015 , respectively, consisted of the following amounts: June 30, 2016 December 31, 2015 (in thousands) Raw materials $ 19,736 $ 20,726 Finished Goods 1,029 1,051 Work in process 3,910 5,945 $ 24,675 $ 27,722

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation (in thousands, except per share data) . Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income $ 1,259 $ 614 $ 3,800 $ 4,308 Denominator for basic net income per common share: Weighted average common shares outstanding 12,709 12,579 12,678 12,542 Denominator for diluted net income per share: Weighted average common shares outstanding 12,709 12,579 12,678 12,542 Dilutive effect of stock options and restricted stock 227 251 209 232 Diluted weighted average shares 12,936 12,830 12,887 12,774 Earnings per common share: Basic $ 0.10 $ 0.05 $ 0.30 $ 0.34 Diluted $ 0.10 $ 0.05 $ 0.29 $ 0.34

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	For the three months ended June 30, 2016 (in thousands): Rental Sales Service & Maintenance Corporate Total Revenue $ 14,655 $ 2,300 $ 239 $ — $ 17,194 Operating costs and expenses 5,411 2,236 85 7,589 15,321 Total other expense, net — — (9 ) (9 ) Income before provision for income taxes $ 9,244 $ 64 $ 154 $ (7,598 ) $ 1,864 For the three months ended June 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 19,712 $ 4,292 $ 226 $ — $ — $ 24,230 Operating costs and expenses 7,008 3,153 43 4,373 8,734 23,311 Total other income, net — — — 2 2 Income before provision for income taxes $ 12,704 $ 1,139 $ 183 $ (4,373 ) $ (8,732 ) $ 921 For the six months ended June 30, 2016 (in thousands): Rental Sales Service & Maintenance Corporate Total Revenue $ 31,063 $ 7,210 $ 497 $ — $ 38,770 Operating costs and expenses 11,105 6,168 196 15,661 33,130 Total other income, net — — — 8 8 Income before provision for income taxes $ 19,958 $ 1,042 $ 301 $ (15,653 ) $ 5,648 For the six months ended June 30, 2015 (in thousands): Rental Sales Service & Maintenance Retirement of Rental Equipment Corporate Total Revenue $ 40,315 $ 8,204 $ 452 $ — $ — $ 48,971 Operating costs and expenses 14,735 5,966 81 4,373 17,110 42,265 Total other income, net — — — — 41 41 Income before provision for income taxes $ 25,580 $ 2,238 $ 371 $ (4,373 ) $ (17,069 ) $ 6,747

Basis of Presentation and Sum20

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue from External Customer [Line Items]
Revenue recognized	$ 17,194	$ 24,230	$ 38,770	$ 48,971
Bill and Hold Arrangement
Revenue from External Customer [Line Items]
Revenue recognized			$ 4,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Number of Stock Options
Outstanding, beginning of period (in shares)	414,769
Exercised (in shares)	(25,750)
Outstanding, end of period (in shares)	389,019	414,769
Exercisable (in shares)	333,187
Weighted Average Exercise Price
Outstanding, beginning of period (in USD per share)	$ 19.07
Exercised (in USD per share)	15.77
Outstanding, end of period (in USD per share)	19.29	$ 19.07
Exercisable (in USD per share)	$ 18.22
Weighted Average Remaining Contractual Life (years)
Outstanding	4 years 7 months 56 days	5 years 29 days
Exercisable	4 years 1 month 18 days
Aggregate Intrinsic Value
Outstanding, beginning of period	$ 1,814
Exercised	154
Outstanding, end of period	1,815	$ 1,814
Exercisable	$ 1,815

Stock-Based Compensation - St22

Stock-Based Compensation - Stock Options Outstanding (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares | shares	389,019
Options outstanding, weighted average remaining contractual life (years)	4 years 7 months 58 days
Options outstanding, weighted average exercise price (in USD per share)	$ 19.29
Options exercisable, shares | shares	333,187
Options exercisable, weighted average exercise price (in USD per share)	$ 18.22
$0.01-15.70
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares | shares	79,352
Options outstanding, weighted average remaining contractual life (years)	3 years 1 month 25 days
Options outstanding, weighted average exercise price (in USD per share)	$ 10.64
Options exercisable, shares | shares	79,352
Options exercisable, weighted average exercise price (in USD per share)	$ 10.64
Range of exercise prices, lower limit (in USD per share)	0.01
Range of exercise prices, upper limit (in USD per share)	$ 15.70
$15.71-17.81
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares | shares	85,750
Options outstanding, weighted average remaining contractual life (years)	3 years 2 months 25 days
Options outstanding, weighted average exercise price (in USD per share)	$ 17.55
Options exercisable, shares | shares	85,750
Options exercisable, weighted average exercise price (in USD per share)	$ 17.55
Range of exercise prices, lower limit (in USD per share)	15.71
Range of exercise prices, upper limit (in USD per share)	$ 17.81
$17.82-20.48
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares | shares	116,417
Options outstanding, weighted average remaining contractual life (years)	3 years 6 months 70 days
Options outstanding, weighted average exercise price (in USD per share)	$ 19.61
Options exercisable, shares | shares	116,417
Options exercisable, weighted average exercise price (in USD per share)	$ 19.61
Range of exercise prices, lower limit (in USD per share)	17.82
Range of exercise prices, upper limit (in USD per share)	$ 20.48
$20.49-33.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares | shares	107,500
Options outstanding, weighted average remaining contractual life (years)	8 years 2 months 32 days
Options outstanding, weighted average exercise price (in USD per share)	$ 26.72
Options exercisable, shares | shares	51,668
Options exercisable, weighted average exercise price (in USD per share)	$ 27.85
Range of exercise prices, lower limit (in USD per share)	20.49
Range of exercise prices, upper limit (in USD per share)	$ 33.36

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Unvested Stock Options (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Shares
Unvested, beginning of period (in shares)	101,836
Vested (in shares)	(46,004)
Unvested, end of period (in shares)	55,832
Weighted Average Grant Date Fair Value Per Share
Unvested, weighted average grant date fair value, beginning of period (in USD per share)	$ 12.67
Vested, weighted average grant date fair value (in USD per share)	12.55
Unvested, weighted average grant date fair value, end of period (in USD per share)	$ 12.77
Stock Options
Weighted Average Grant Date Fair Value Per Share
Unrecognized compensation cost related to unvested options	$ 481,333
Unrecognized compensation cost related to awards, weighted average period for recognition	1 year 2 months 2 days
Share-based compensation expense	$ 277,549	$ 265,258

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock (Details) - Restricted Stock - USD ($)	Apr. 06, 2016	Jan. 06, 2016	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 908,879	$ 1,492,142
Total unrecognized compensation expense			$ 2,518,209
Unrecognized compensation cost related to awards, vesting period			2 years
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted in period		75,915
Award vesting period		2 years
Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted in period	20,000
Award vesting period	2 years
Vice President of Technical Services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted in period	20,000
Award vesting period	2 years
Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted in period			23,536
Award vesting period			1 year

Inventory (Details)

Inventory (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Inventory Disclosure [Abstract]
Allowance for inventory obsolescence	$ 44,000		$ 12,000
Raw materials	19,736,000		20,726,000
Finished Goods	1,029,000		1,051,000
Work in process	3,910,000		5,945,000
Inventory, net	24,675,000		$ 27,722,000
Write-offs of obsolete inventory against allowance	$ 0	$ 0

Retirement of Long-Lived Asse26

Retirement of Long-Lived Assets (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)rental_compressorhp	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)rental_compressorhp
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]
Amount of rental compressor horsepower | hp		32,259		32,259
Loss on retirement of rental equipment	$ 0	$ 4,373,000	$ 0	$ 4,373,000
Rental Compressor Unit
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]
Number of rental compressors to be retired | rental_compressor		258		258
Estimated fair value of long-lived assets		$ 967,000		$ 967,000
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		$ 4,400,000

Deferred Compensation Plans (De

Deferred Compensation Plans (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)shares	Jun. 30, 2015USD ($)
Postemployment Benefits [Abstract]
Participant's maximum compensation deferral percentage	90.00%
Company owned life insurance	$ 109
Gain on company owned life insurance	4	$ 0
Deferred compensation obligation	$ 109
Deferred restricted stock shares | shares	0

Credit Facility (Details)

Credit Facility (Details)	6 Months Ended
	Jun. 30, 2016USD ($)loan	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Line of credit, non-current portion	$ 417,000	$ 417,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Aggregate credit agreement commitment	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
Weighted average interest rate	1.75%
Default trigger, certain defaults of other company indebtedness, amount	$ 50,000
Default trigger, rendering of certain judgments, amount	150,000
Line of credit, non-current portion	$ 417,000	$ 417,000
LIBOR Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Reference rate, number of allowable LIBOR-based borrowings outstanding | loan	3
Variable rate, applicable margin	1.50%
CB Floating Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Variable rate, applicable margin	1.50%
Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Minimum commitment coverage ratio allowed	2
Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum leverage ratio allowed	2.50

Earnings per Share - Basic and

Earnings per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net income	$ 1,259	$ 614	$ 3,800	$ 4,308
Denominator for basic net income per common share:
Weighted average common shares outstanding (in shares)	12,709,000	12,579,000	12,678,000	12,542,000
Denominator for diluted net income per share:
Weighted average common shares outstanding (in shares)	12,709,000	12,579,000	12,678,000	12,542,000
Dilutive effect of stock options and restricted stock (in shares)	227,000	251,000	209,000	232,000
Diluted weighted average shares (in shares)	12,936,000	12,830,000	12,887,000	12,774,000
Earnings per common share:
Basic (in USD per share)	$ 0.10	$ 0.05	$ 0.30	$ 0.34
Diluted (in USD per share)	$ 0.10	$ 0.05	$ 0.29	$ 0.34
Number of shares not included in the computation of dilutive income per share (in shares)	107,500	52,500	107,500	107,500
Antidilutive Effect
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of shares not included in the computation of dilutive income per share, lower limit (in dollars per share)	$ 22.90	$ 30.41	$ 22.90	$ 22.90
Exercise price of shares not included in the computation of dilutive income per share, upper limit (in dollars per share)	$ 33.36	$ 33.36	$ 33.36	$ 33.36

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)segment	Jun. 30, 2015USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Segment Reporting Information [Line Items]
Revenue	$ 17,194	$ 24,230	$ 38,770	$ 48,971
Operating costs and expenses	15,321	23,311	33,130	42,265
Total other income (expense), net	(9)	2	8	41
Income before provision for income taxes	1,864	921	5,648	6,747
Corporate
Segment Reporting Information [Line Items]
Revenue	0	0	0	0
Operating costs and expenses	7,589	8,734	15,661	17,110
Total other income (expense), net	(9)	2	8	41
Income before provision for income taxes	(7,598)	(8,732)	(15,653)	(17,069)
Rental | Operating Segments
Segment Reporting Information [Line Items]
Revenue	14,655	19,712	31,063	40,315
Operating costs and expenses	5,411	7,008	11,105	14,735
Total other income (expense), net	0	0	0	0
Income before provision for income taxes	9,244	12,704	19,958	25,580
Sales | Operating Segments
Segment Reporting Information [Line Items]
Revenue	2,300	4,292	7,210	8,204
Operating costs and expenses	2,236	3,153	6,168	5,966
Total other income (expense), net	0	0	0	0
Income before provision for income taxes	64	1,139	1,042	2,238
Service & Maintenance | Operating Segments
Segment Reporting Information [Line Items]
Revenue	239	226	497	452
Operating costs and expenses	85	43	196	81
Total other income (expense), net			0	0
Income before provision for income taxes	$ 154	183	$ 301	371
Retirement of Rental Equipment | Operating Segments
Segment Reporting Information [Line Items]
Revenue		0		0
Operating costs and expenses		4,373		4,373
Total other income (expense), net		0		0
Income before provision for income taxes		$ (4,373)		$ (4,373)