Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 02, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NATURAL GAS SERVICES GROUP INC | ||
Entity Central Index Key | 1,084,991 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 12,982,262 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 321,493,471 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 69,208 | $ 64,094 |
Trade accounts receivable, net of allowance for doubtful accounts of $569 and $597, respectively | 8,534 | 7,378 |
Inventory | 26,224 | 21,433 |
Prepaid income taxes | 3,443 | 1,482 |
Prepaid expenses and other | 817 | 972 |
Total current assets | 108,226 | 95,359 |
Long-Term Inventory, net of allowance for obsolescence of $15 and $15, respectively | 2,829 | 2,488 |
Rental equipment, net of accumulated depreciation of $145,851 and $126,096, respectively | 167,099 | 175,972 |
Property and equipment, net of accumulated depreciation of $11,274 and $11,267, respectively | 7,652 | 7,753 |
Goodwill | 10,039 | 10,039 |
Intangibles, net of accumulated amortization of $1,632 and $1,508, respectively | 1,526 | 1,651 |
Other assets | 939 | 262 |
Total assets | 298,310 | 293,524 |
Current Liabilities: | ||
Line of credit | 0 | 417 |
Accounts payable | 4,162 | 971 |
Accrued liabilities | 3,106 | 2,887 |
Deferred income | 185 | 2,225 |
Total current liabilities | 7,453 | 6,500 |
Line of credit | 417 | 0 |
Deferred income tax liability | 32,163 | 53,745 |
Other long-term liabilities | 958 | 325 |
Total liabilities | 40,991 | 60,570 |
Commitments and contingencies (Note 11) | ||
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; 12,880 and 12,764 shares issued and outstanding, respectively | 129 | 128 |
Additional paid-in capital | 105,325 | 100,812 |
Retained earnings | 151,865 | 132,014 |
Total stockholders' equity | 257,319 | 232,954 |
Total liabilities and stockholders' equity | $ 298,310 | $ 293,524 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for doubtful accounts | $ 569 | $ 597 |
Allowance for inventory obsolescence | 15 | 15 |
Assets, Noncurrent [Abstract] | ||
Accumulated depreciation, rental equipment | 145,851 | 126,069 |
Accumulated depreciation, property and equipment | 11,274 | 11,267 |
Accumulated amortization, intangibles | $ 1,632 | $ 1,508 |
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 | 12,880,000 | 12,764,000 |
Common stock, shares outstanding | 12,880,000 | 12,764,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Rental income | $ 46,046 | $ 56,717 | $ 76,432 |
Sales | 20,208 | 13,621 | 18,519 |
Service and maintenance income | 1,439 | 1,316 | 968 |
Total revenue | 67,693 | 71,654 | 95,919 |
Operating costs and expenses: | |||
Cost of rentals, exclusive of depreciation stated separately below | 18,087 | 20,350 | 28,750 |
Cost of sales, exclusive of depreciation stated separately below | 16,286 | 11,124 | 13,633 |
Cost of service and maintenance, exclusive of depreciation stated separately below | 370 | 398 | 272 |
Loss on retirement of rental equipment | 0 | 545 | 4,370 |
Selling, general, and administrative expenses | 10,081 | 9,011 | 10,989 |
Depreciation and amortization | 21,302 | 21,796 | 22,758 |
Total operating costs and expenses | 66,126 | 63,224 | 80,772 |
Operating income | 1,567 | 8,430 | 15,147 |
Other income (expense): | |||
Interest expense | (14) | (8) | (15) |
Other income | 50 | 43 | 132 |
Total other income, net | 36 | 35 | 117 |
Income before provision for income taxes | 1,603 | 8,465 | 15,264 |
Provision for income taxes: | |||
Current | 3,334 | 4,709 | 6,963 |
Deferred | (21,582) | (2,713) | (1,846) |
Total income tax expense (benefit) | (18,248) | 1,996 | 5,117 |
Net income | $ 19,851 | $ 6,469 | $ 10,147 |
Earnings per share: | |||
Earnings per share - Basic (in dollars per share) | $ 1.55 | $ 0.51 | $ 0.81 |
Earnings per share - Diluted (in dollars per share) | $ 1.51 | $ 0.50 | $ 0.79 |
Weighted average shares outstanding: | |||
Weighted average shares outstanding, Basic (in shares) | 12,831 | 12,702 | 12,567 |
Weighted average shares outstanding, Diluted (in shares) | 13,110 | 12,935 | 12,793 |
Consolidated Statements of Stoc
Consolidated 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, 2014 | 0 | ||||
Common stock, shares outstanding, beginning of period at Dec. 31, 2014 | 12,466,000 | ||||
Balance, beginning 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 | 66,000 | ||||
Exercise of common stock options | 776 | $ 1 | 775 | ||
Compensation expense on common stock options | 601 | 601 | |||
Issuance of restricted stock, shares | 71,000 | ||||
Issuance of restricted stock | 0 | ||||
Tax benefit (expense) of equity compensation | (379) | (379) | |||
Compensation expense on restricted common stock | 2,944 | $ 1 | 2,943 | ||
Taxes paid related to net shares settlement of equity awards | (695) | (695) | |||
Net income | 10,147 | 10,147 | |||
Common stock, shares outstanding, end of period at Dec. 31, 2015 | 12,603,000 | ||||
Balance, end of period at Dec. 31, 2015 | 223,981 | $ 126 | 98,310 | 125,545 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares | 62,000 | ||||
Exercise of common stock options | 1,042 | $ 1 | 1,041 | ||
Compensation expense on common stock options | 506 | 506 | |||
Issuance of restricted stock, shares | 99,000 | ||||
Issuance of restricted stock | 0 | ||||
Tax benefit (expense) of equity compensation | 72 | 72 | |||
Compensation expense on restricted common stock | 1,793 | $ 1 | 1,792 | ||
Taxes paid related to net shares settlement of equity awards | (909) | (909) | |||
Net income | $ 6,469 | 6,469 | |||
Preferred stock, shares outstanding, end of period at Dec. 31, 2016 | 0 | 0 | |||
Common stock, shares outstanding, end of period at Dec. 31, 2016 | 12,764,000 | 12,764,000 | |||
Balance, end of period at Dec. 31, 2016 | $ 232,954 | $ 0 | $ 128 | 100,812 | 132,014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares | 56,000 | ||||
Exercise of common stock options | 1,120 | $ 0 | 1,120 | ||
Compensation expense on common stock options | 363 | 363 | |||
Issuance of restricted stock, shares | 60,000 | ||||
Issuance of restricted stock | 0 | ||||
Compensation expense on restricted common stock | 3,675 | $ 1 | 3,674 | ||
Taxes paid related to net shares settlement of equity awards | (644) | (644) | |||
Net income | $ 19,851 | 19,851 | |||
Preferred stock, shares outstanding, end of period at Dec. 31, 2017 | 0 | 0 | |||
Common stock, shares outstanding, end of period at Dec. 31, 2017 | 12,880,000 | 12,880,000 | |||
Balance, end of period at Dec. 31, 2017 | $ 257,319 | $ 0 | $ 129 | $ 105,325 | $ 151,865 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 19,851 | $ 6,469 | $ 10,147 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,302 | 21,796 | 22,758 |
Deferred taxes | (21,582) | (2,713) | (1,846) |
Gain on disposal of assets | (87) | (86) | (179) |
Loss on retirement of rental equipment | 0 | 545 | 4,370 |
Bad debt allowance | 90 | 61 | 477 |
Inventory allowance | 273 | 566 | 205 |
Stock based compensation | 4,038 | 2,299 | 3,545 |
Gain on company owned life insurance | (67) | (14) | 0 |
Changes in assets (increase) decrease in: | |||
Trade accounts receivables | (1,246) | 1,668 | 824 |
Inventory | (5,350) | 1,131 | 5,337 |
Prepaid income taxes and prepaid expenses | (1,806) | (1,539) | 5,774 |
Changes in liabilities increase (decrease) in: | |||
Accounts payable and accrued liabilities | 3,410 | (439) | (7,220) |
Current income tax liability | 0 | 0 | (1,230) |
Deferred income | (2,040) | 1,954 | (1,364) |
Other | 666 | 159 | (32) |
Tax benefit from equity compensation | 0 | (72) | 0 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 17,452 | 31,785 | 41,566 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of rental, property and equipment | (13,489) | (3,321) | (12,459) |
Purchase of company owned life insurance | (620) | (194) | 0 |
Proceeds from Insurance Settlement, Investing Activities | 1,231 | 0 | 0 |
Proceeds from sale of property and equipment | 87 | 101 | 189 |
NET CASH USED IN INVESTING ACTIVITIES | (12,791) | (3,414) | (12,270) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of other long-term liabilities | (23) | (14) | (26) |
Proceeds from exercise of stock options | 1,120 | 1,042 | 776 |
Tax benefit from equity compensation | 0 | 72 | 0 |
Taxes paid related to net share settlement of equity awards | (644) | (909) | (695) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 453 | 191 | 55 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 5,114 | 28,562 | 29,351 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 64,094 | 35,532 | 6,181 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 69,208 | 64,094 | 35,532 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid | 14 | 8 | 15 |
Income taxes paid | 3,725 | 5,825 | 6,530 |
NON-CASH TRANSACTIONS | |||
Transfer of rental equipment to inventory | 55 | 724 | 2,309 |
Transfer of inventory to property and equipment | $ 0 | $ 0 | $ 1,624 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Principles of Consolidation These notes apply to the consolidated 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 was formed on December 17, 1998 for the purposes of combining the operations of certain manufacturing, service and leasing entities. The accompanying consolidated financial statements include the accounts of the Company, its subsidiary, NGSG Properties, LLC and the rabbi trust associated with the Company’s deferred compensation plan, see Note 5. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. Nature of Operations Natural Gas Services Group is a leading provider of small to medium horsepower compression equipment to the natural gas industry, with an emerging position in the large horsepower market. We focus primarily on the non-conventional natural gas and oil 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 consolidated 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 consolidated 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 $569,000 and $597,000 at December 31, 2017 and 2016 , 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. 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. From time to time, upon the customer’s written request, we recognize revenue when manufacturing is complete and the equipment is ready for shipment. At the customer’s request, we will bill the customer upon completing all performance obligations, but before shipment.The customer will formally request we ship the equipment per their direction from our manufacturing facility at a later specified date and that we segregate the equipment from our finished goods, such that they are not available to fill other orders. Title of the equipment and risk of loss passes to the customer when the equipment is complete and ready for shipment, per the customer’s agreement. At the transfer of title, all risks of ownership has passed to the customer on the manufactured items that have not yet been shipped. We have operated using bill and hold agreements with certain customers for many years, with consistent satisfactory results for both the customer and us. The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the customer, and there are no exceptions to the customer’s commitment to accept and pay for this manufactured equipment. Revenues recognized at the completion of manufacturing in 2017 and 2016 were approximately $4.6 million and $5.6 million , respectively. Major Customers and Concentration of Credit Risk Sales and rental income to Occidental Permian, LTD. ("Oxy") and Devon Energy Production, Inc. ("Devon") in 2017 amounted to 20% and 15% of revenue, respectively. Sales and rental income to Devon and Oxy in 2016 amounted to 21% and 19% of revenue, respectively. Sales and rental income to Devon and Oxy in 2015 amounted to 21% and 10% of revenue. No other single customer accounted for more than 10% of our revenues in 2017 , 2016 or 2015 . Oxy amounted to 14% of our accounts receivable as of December 31, 2017. Oxy, APR Energy, LLC and BP America Inc. amounted to 15% , 15% and 14% , respectively, of our accounts receivable as of December 31, 2016. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2017 and 2016 . Inventory Inventory (current and long-term) is valued at the lower of cost and net realizable value. 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 $15,000 and $15,000 at December 31, 2017 and 2016 , respectively. There were 7 newly completed compressor units at December 31, 2017 and December 31, 2016 available for sale or for use in our rental fleet. Our long-term inventory consists of raw materials that remain viable but that the Company does not expect to sell within the next year. At December 31, 2017 and 2016 , inventory consisted of the following (in thousands): 2017 2016 Raw materials -current $ 22,813 $ 15,877 Raw materials - long term 2,829 2,488 Finished Goods 1,022 2,558 Work in process 2,389 2,998 Total $ 29,053 $ 23,921 Rental Equipment and Property and Equipment Rental equipment and property and equipment are recorded at cost less accumulated depreciation, except for work-in-progress on new rental equipment which is recorded at cost until it’s complete and added to the fleet. At December 31 2017 and 2016, we had $6.4 million and $1.9 million in rental equipment work-in-progress, respectively. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Our rental equipment has an estimated useful life of 15 years, while our property and equipment has an estimate useful lives which range from three to thirty-nine years. The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue and the following table depicts the depreciation associated with each product line at December 31, 2017 , 2016 and 2015 (in thousands): 2017 2016 2015 Rentals $ 20,861 $ 21,325 $ 22,308 Sales 265 291 281 Service & Maintenance 21 25 16 Total $ 21,147 $ 21,641 $ 22,605 We assess the impairment of rental equipment and property and equipment whenever events or changes in circumstances indicate that the net recorded amount may not be recoverable. The following factors could trigger an impairment review: significant underperformance relative to historical or projected future cash flows, significant adverse changes in the extent or manner in which asset is being used or its condition, significant negative industry trends or legislative changes prohibiting us from leasing our units or flares. An impairment loss is recognized if the future undiscounted cash flows associated with the asset and the estimated fair value of the asset are less than the asset's carrying value. We recognized no impairments in years ended December 31, 2017, 2016 or 2015. 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 continued low oil and natural gas prices, we determined a triggering event occurred during each quarter and we performed a goodwill impairment test each quarter of 2017 and our annual goodwill impairment test was performed in the fourth quarter of 2017 . We experienced no impairment of goodwill during the years ended December 31, 2017 or 2016 . Intangibles At December 31, 2017 , NGSG had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2017 and 2016 was $1.5 million and $1.7 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 seven years as of December 31, 2017 . Amortization expense recognized in each of the years ending December 31, 2017 , 2016 , and 2015 was $125,000 . Estimated amortization expense for the years 2018 -2024 is $125,000 per year. NGSG has an intangible asset with a gross carrying value of $654,000 at December 31, 2017 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, 2017 December 31, 2016 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,633 $ 872 $ 2,505 $ 1,508 $ 997 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,633 $ 1,526 $ 3,159 $ 1,508 $ 1,651 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, 2017 or 2016 . Separately, we reviewed our indefinite life intangible for impairment with our goodwill impairment review, which we performed each quarter in 2017 due to a continued decline in our rental utilization and then annually in the fourth quarter of 2017. Based on this analysis, we experienced no impairment on our indefinite life intangible during the years ended December 31, 2017 or 2016. 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 $65,000 and $103,000 for December 31, 2017 and 2016 , respectively, and is included in accrued liabilities on the consolidated 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 2017 , 2016 and 2015 . The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2017 2016 2015 Numerator: Net income $ 19,851 $ 6,469 $ 10,147 Denominator for basic net income per common share: Weighted average common shares outstanding 12,831 12,702 12,567 Denominator for diluted net income per share: Weighted average common shares outstanding 12,831 12,702 12,567 Dilutive effect of stock options and restricted shares 279 233 226 Diluted weighted average shares 13,110 12,935 12,793 Earnings per common share: Basic $ 1.55 $ 0.51 $ 0.81 Diluted $ 1.51 $ 0.50 $ 0.79 In the year-ended December 31, 2017 , options to purchase 83,917 shares of common stock with exercise prices ranging from $28.15 to $33.36 were not included in the computation of dilutive income per share, due to their anti-dilutive effect. In the year-ended December 31, 2016 , options to purchase 51,167 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 anti-dilutive effect. 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 anti-dilutive 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, 2017 or 2016 . Our policy regarding income tax interest and penalties is to expense those items as other expense. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), which makes broad and complex changes to the U.S. tax code. Certain income tax effects of the 2017 Tax Act are reflected in the Company’s financial results in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), which provides SEC staff guidance regarding the application of Accounting Standards Codification Topic 740 Income Taxes (“ASC 740”). As we do not have all of the necessary information to analyze all income tax effects of the 2017 Tax Act, we will continue to evaluate tax reform and adjust the provisional amounts as additional information is obtained. We expect to complete our detailed analysis no later than the fourth quarter of 2018. See Note 7, “Income Taxes,” for further information on the financial statement impact of the 2017 Tax Act. 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, 2017 and 2016 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 ASU No. 2016-02, Leases (Topic 842). 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 determining the impacts of the new standard on our consolidated financial statements and the additional applicable disclosure requirements. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a five-step analysis on how 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. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard’s effective date for all entities, which changed the effectiveness to interim and annual reporting periods beginning after December 15, 2017. As a result, we adopted the guidance on January 1, 2018. The guidance offered two transition methods: a full retrospective approach to be applied to each prior reporting period presented or a modified retrospective approach where the cumulative effect of initially applying the standard is recognized at the date of initial application. We have selected the modified retrospective transition method. We have determined the impact of the new standard on our consolidated financial statements. Our approach included performing a detailed review of key contracts that are representative of our various revenue streams and comparing our historical accounting policies and practices to the new standard. Based upon our analysis, we have determined there will be no material financial impact upon adoption, but we will have a change in our disclosures under the new standard and have implemented new internal controls to ensure compliance under this new standard. 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, 2017 | |
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 twenty-four months and continue on a month-to-month basis thereafter. Depreciation expense for rental equipment was $20.0 million , $20.2 million and $21.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2017 are as follows : Years Ending December 31, (in thousands) 2018 $ 6,494 2019 976 2020 543 2021 542 2022 542 Total $ 9,097 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following at December 31, 2017 and 2016 (in thousands): Useful Lives (Years) 2017 2016 Land — $ 1,290 $ 169 Building 39 6,116 6,856 Leasehold improvements 39 808 794 Office equipment and furniture 5 1,490 1,454 Software 5 573 573 Machinery and equipment 7 3,133 3,111 Vehicles 3 5,516 6,063 Total 18,926 19,020 Less accumulated depreciation (11,274 ) (11,267 ) Total $ 7,652 $ 7,753 Depreciation expense for property and equipment was $1.2 million , $1.4 million and $1.6 million for the year ended December 31, 2017, 2016 and 2015 , respectively. In 2017, the Midland fabrication facility suffered two separate damages, due to hailstorms. We did not incur a loss, as our insurance proceed fully cover the estimated cost for the repair. In accordance with ASC 605-40, we reduced the value of the building for these damages. |
Retirement of Long-Lived Assets
Retirement of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Retirement of Long-Lived Assets | Retirement of Long-Lived Assets During the annual review of our rental compressor units, management looks for any units that are not of the type, configuration, make or model that our customers are demanding or that were not cost efficient to refurbish, maintain and/or operate. We had no retirement from our rental fleet in 2017. From our review in 2016, we determined 63 units 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 $545,000 loss on retirement of rental equipment to reduce the book value of each unit to the estimated fair value of approximately $242,000 for key components being kept. As a result of our 2015 review, we retired 258 units from our rental fleet with key components from those units being re-utilized in future unit builds and/or repairs. Based on our optimization review we 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. These retirements are recorded in the consolidated income statement under loss on retirement of rental equipment. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation Related Costs [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 $894,000 and $207,000 as of December 31, 2017 and 2016, respectively, with a gain related to the policy of $66,400 and $13,900 reported in other income in our consolidated income statement for the year ended December 31, 2017 and 2016, respectively. 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 $866,000 and $208,000 as of December 31, 2017 and 2016, respectively. The deferred obligation is included in other long-term liabilities in the 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 December 31, 2017 , a total of $97,011 unvested restricted stock units have been deferred. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2017 | |
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 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 ). On August 31, 2017, we amended and renewed the Amended Credit Agreement, which was set to expire on December 31, 2017. The Credit Agreement Amendment extends the maturity date to December 31, 2020. No other material revisions were made to the credit facility. 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, 2017 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, 2020, 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 lease 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, 2017 , 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, 2017 our balance on the line of credit was $417,000 . Our weighted average interest rate for the year ended December 31, 2017 was 1.60% . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2017 , 2016 and 2015 , consists of the following (in thousands): 2017 2016 2015 Current provision: Federal $ 3,074 $ 4,280 $ 6,440 State 260 429 523 Total current provision 3,334 4,709 6,963 Deferred provision: Federal benefit (21,582 ) (2,713 ) (1,846 ) Total deferred benefit (21,582 ) (2,713 ) (1,846 ) Total (benefit) provision $ (18,248 ) $ 1,996 $ 5,117 On December 22, 2017, the U.S. government enacted the 2017 Tax Act. The 2017 Tax Act makes broad and complex changes to the U.S. tax code that affects the Company’s 2017 financial results. The 2017 Tax Act also establishes new tax laws that will affect the Company’s financial results after 2017, including a reduction in the U.S. federal corporate income tax rate from 35 percent to 21 percent; additional limitations on the deductibility of executive compensation; limitations on the deductibility of interest; and repeal of the domestic manufacturing deduction. As such, the Company recognized a $18.4 income tax benefit related to the re-measurement of our deferred tax assets and liabilities in our 2017 financial statements in accordance with SAB 118, which provides SEC staff guidance for the application of ASC 740 in the reporting period in which the 2017 Tax Act was signed into law. As we do not have all of the necessary information to analyze all income tax effects of the 2017 Tax Act, we will continue to evaluate tax reform and adjust the provisional amounts as additional information is obtained. We expect to complete our detailed analysis no later than the fourth quarter of 2018. The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of December 31, 2017 and 2016 , are as follows (in thousands): 2017 2016 Deferred income tax assets: Stock Compensation $ 843 $ 664 Other 201 84 Total deferred income tax assets $ 1,044 $ 748 Deferred income tax liabilities: Property and equipment $ (32,377 ) (53,120 ) Goodwill and other intangible assets (604 ) (973 ) Other (226 ) (400 ) Total deferred income tax liabilities (33,207 ) (54,493 ) Net deferred income tax liabilities $ (32,163 ) $ (53,745 ) The effective tax rate for the years ended December 31, 2017 , 2016 and 2015 , differs from the statutory rate as follows: 2017 2016 2015 Statutory rate 34.0 % 34.0 % 34.0 % State and local taxes 1.5 % 1.6 % 1.5 % Domestic production credit (14.3 )% (5.4 )% (3.6 )% Permanent stock differences (13.4 )% 0.3 % 1.1 % Other (1.5 )% (6.9 )% 0.5 % Effective rate prior to tax act 6.3 % 23.6 % 33.5 % Deferred re-measurement for rate change (1,144.4 )% — % — % Effective rate (1,138.1 )% 23.6 % 33.5 % Our policy regarding income tax interest and penalties is to expense those items as general and administrative expense. During the years ended December 31, 2017 , 2016 and 2015 , there were no significant income tax interest or penalty items in the statement of income. 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 2013. |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | Other Long-term Liabilities 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 $92,000 and $115,000 as of December 31, 2017 and 2016 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 , there were no issued or outstanding preferred shares. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Restricted Stock/Units On June 18, 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. 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 2016 performance, Mr. Taylor, was awarded 70,464 restricted shares/units on February 14, 2017, which vest over three years, in equal installments beginning February 14, 2018. On March 23, 2017, the Compensation Committee awarded 20,000 restricted shares/units to each G. Larry Lawrence, our CFO, and James Hazlett, our Vice President of Technical Services. The restricted shares/units to Messrs. Hazlett and Lawrence vest over three years , in equal installments, beginning March 23, 2018. We also awarded and issued 15,968 shares of restricted common stock/units to our Board of Directors as partial payment for 2017 directors' fees. The restricted stock/units issued to our directors vests over one year , in quarterly installments, beginning March 31, 2018. Compensation expense related to the restricted shares/units was approximately $3,675,000 , $1,793,000 and $2,944,000 for the years ended December 31, 2017 , 2016, and 2015, respectively. As of December 31, 2017 , there was a total of approximately $1,385,000 of unrecognized compensation expense related to the nonvested portion of these restricted shares/units. This expense is expected to be recognized over the next one year and a quarter. As of December 31, 2017, 162,770 shares were still available for issuance under the Plan. A summary of all restricted stock/units activity as of December 31, 2015, 2016 and 2017 and changes during the years then ended are presented below. Number Weighted Average Weighted Aggregate (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 145,588 $ 19.17 9.12 $ 3,246 Granted 139,451 $ 21.34 — $ 3,007 Vested (145,558 ) $ 19.17 — $ 2,963 Canceled/Forfeited — $ — — $ — Outstanding, December 31, 2016 139,451 $ 21.34 9.13 $ 4,483 Granted 126,432 27.06 — 3,421 Vested (81,494 ) 21.20 — 2,361 Canceled/Forfeited — — — — Outstanding, December 31, 2017 184,389 $ 25.32 8.83 $ 4,831 Stock Option Plan Our 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 to add an additional 200,000 shares of common stock to the Stock Option Plan. On June 16, 2016, at our annual meeting of shareholders, our shareholders approved a proposed amendment to the Stock Option Plan to add an additional 250,000 shares of common stock ot the Stock Option Plan, thereby authorizing the issuance of up to 1.0 million 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 February 28, 2026. As of December 31, 2017 , 313,169 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: 2017 2015 Risk free rate 2.12 % 1.56 % Expected life 6 years 6 years Expected volatility 39.59 % 45.07 % Expected dividend yield — — There were no stock option grants made in 2016. A summary of all option activity as of December 31, 2015, 2016 and 2017 and changes during the years then ended are presented below: Number Weighted Average Weighted Aggregate (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 $ — Outstanding, December 31, 2015 414,769 $ 19.07 5.08 $ 1,814 Granted — $ — Exercised (62,083 ) $ 16.79 625 Canceled/Forfeited (2,500 ) $ 22.90 — Outstanding, December 31, 2016 350,186 $ 19.45 4.25 $ 4,453 Granted 32,750 28.15 Exercised (55,666 ) 20.12 446 Outstanding, December 31, 2017 327,270 $ 20.21 4.28 $ 2,255 Exercisable, December 31, 2017 278,689 $ 19.12 3.54 $ 2,203 The weighted average grant date fair value of options granted during the years 2017 and 2015 was $11.93 and $10.33 , 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, 2017 , 2016 , and 2015 was approximately $446,000 , $625,000 , and $481,000 respectively. Cash received from stock options exercised during the years ended December 31, 2017 , 2016 , and 2015 was approximately $1,120,000 , $1,042,000 , and $776,000 , respectively. The following table summarizes information about our stock options outstanding at December 31,: 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 65,852 1.56 $ 9.82 65,852 $ 9.82 $15.71-17.81 72,750 1.79 $ 17.53 72,750 $ 17.53 $17.82-20.48 56,750 3.54 $ 19.36 56,750 $ 19.36 $20.49-33.36 131,918 7.34 $ 27.23 83,337 $ 27.70 327,270 4.28 $ 20.21 278,689 $ 19.12 The summary of the status of our unvested stock options as of December 31, 2017 and changes during the year then ended is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 50,833 $ 12.67 Granted 32,750 $ 11.93 Vested (35,002 ) $ 13.73 Unvested at December 31, 2017 48,581 $ 11.41 We recognized stock compensation expense from stock options vesting of $363,000 , $506,000 , and $601,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , there was approximately $282,000 of total unamortized compensation cost related to unvested stock options. We expect to recognize such cost over a weighted-average period of 2.0 years . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 $301,000 , $295,000 , and $387,000 to the 401(k) Plan in 2017 , 2016 and 2015 , 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 (excluding month to month) due under these leases are as follows: Years Ending December 31, (in thousands) 2018 $ 484 2019 122 2020 9 2021 1 Total $ 616 Rent expense under such leases was $ 310,000 , $325,000 , and $375,000 for the years ended December 31, 2017 , 2016 and 2015 , 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, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (in thousands, except per share data) – Unaudited 2017 Q1 Q2 Q3 Q4 Total Total revenue $ 18,902 $ 16,218 $ 15,913 $ 16,660 $ 67,693 Operating income 343 414 593 217 1,567 Net income (1) 252 375 522 18,702 19,851 Net income per share - Basic 0.02 0.03 0.04 1.46 1.55 Net income per share - Diluted 0.02 0.03 0.04 1.42 1.51 (1) The increase in fourth quarter net income is largely a result of the 2017 Tax Act, see Note 7. 2016 Q1 Q2 Q3 Q4 Total Total revenue $ 21,576 $ 17,194 $ 16,181 $ 16,703 $ 71,654 Operating income 3,767 1,873 1,823 967 8,430 Net income 2,541 1,259 1,509 1,160 6,469 Net income per share - Basic 0.20 0.10 0.12 0.09 0.51 Net income per share - Diluted 0.20 0.10 0.12 0.09 0.50 Amounts may not add due to rounding differences. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Principles of Consolidation | Organization and Principles of Consolidation These notes apply to the consolidated 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 was formed on December 17, 1998 for the purposes of combining the operations of certain manufacturing, service and leasing entities. The accompanying consolidated financial statements include the accounts of the Company, its subsidiary, NGSG Properties, LLC and the rabbi trust associated with the Company’s deferred compensation plan, see Note 5. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. |
Nature of Operations | Nature of Operations Natural Gas Services Group is a leading provider of small to medium horsepower compression equipment to the natural gas industry, with an emerging position in the large horsepower market. We focus primarily on the non-conventional natural gas and oil 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 consolidated 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 consolidated 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 $569,000 and $597,000 at December 31, 2017 and 2016 , 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. 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. From time to time, upon the customer’s written request, we recognize revenue when manufacturing is complete and the equipment is ready for shipment. At the customer’s request, we will bill the customer upon completing all performance obligations, but before shipment.The customer will formally request we ship the equipment per their direction from our manufacturing facility at a later specified date and that we segregate the equipment from our finished goods, such that they are not available to fill other orders. Title of the equipment and risk of loss passes to the customer when the equipment is complete and ready for shipment, per the customer’s agreement. At the transfer of title, all risks of ownership has passed to the customer on the manufactured items that have not yet been shipped. We have operated using bill and hold agreements with certain customers for many years, with consistent satisfactory results for both the customer and us. The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the customer, and there are no exceptions to the customer’s commitment to accept and pay for this manufactured equipment. |
Major Customers and Concentration of Credit Risk | Major Customers and Concentration of Credit Risk Sales and rental income to Occidental Permian, LTD. ("Oxy") and Devon Energy Production, Inc. ("Devon") in 2017 amounted to 20% and 15% of revenue, respectively. Sales and rental income to Devon and Oxy in 2016 amounted to 21% and 19% of revenue, respectively. Sales and rental income to Devon and Oxy in 2015 amounted to 21% and 10% of revenue. No other single customer accounted for more than 10% of our revenues in 2017 , 2016 or 2015 . Oxy amounted to 14% of our accounts receivable as of December 31, 2017. Oxy, APR Energy, LLC and BP America Inc. amounted to 15% , 15% and 14% , respectively, of our accounts receivable as of December 31, 2016. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2017 and 2016 . |
Inventory | Inventory Inventory (current and long-term) is valued at the lower of cost and net realizable value. The cost of inventories is determined by the weighted average method. A reserve is recorded against inventory balances for estimated obsolescence. |
Rental Equipment and Property and Equipment | Rental Equipment and Property and Equipment Rental equipment and property and equipment are recorded at cost less accumulated depreciation, except for work-in-progress on new rental equipment which is recorded at cost until it’s complete and added to the fleet. At December 31 2017 and 2016, we had $6.4 million and $1.9 million in rental equipment work-in-progress, respectively. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Our rental equipment has an estimated useful life of 15 years, while our property and equipment has an estimate useful lives which range from three to thirty-nine years. |
Impairment of Rental Equipment | We assess the impairment of rental equipment and property and equipment whenever events or changes in circumstances indicate that the net recorded amount may not be recoverable. The following factors could trigger an impairment review: significant underperformance relative to historical or projected future cash flows, significant adverse changes in the extent or manner in which asset is being used or its condition, significant negative industry trends or legislative changes prohibiting us from leasing our units or flares. An impairment loss is recognized if the future undiscounted cash flows associated with the asset and the estimated fair value of the asset are less than the asset's carrying value. We recognized no impairments in years ended December 31, 2017, 2016 or 2015. 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. Due to continued low oil and natural gas prices, we determined a triggering event occurred during each quarter and we performed a goodwill impairment test each quarter of 2017 and our annual goodwill impairment test was performed in the fourth quarter of 2017 . |
Intangibles | Intangibles At December 31, 2017 , NGSG had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2017 and 2016 was $1.5 million and $1.7 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 seven years as of December 31, 2017 . Amortization expense recognized in each of the years ending December 31, 2017 , 2016 , and 2015 was $125,000 . Estimated amortization expense for the years 2018 -2024 is $125,000 per year. NGSG has an intangible asset with a gross carrying value of $654,000 at December 31, 2017 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, 2017 December 31, 2016 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,633 $ 872 $ 2,505 $ 1,508 $ 997 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,633 $ 1,526 $ 3,159 $ 1,508 $ 1,651 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, 2017 or 2016 . Separately, we reviewed our indefinite life intangible for impairment with our goodwill impairment review, which we performed each quarter in 2017 due to a continued decline in our rental utilization and then annually in the fourth quarter of 2017. Based on this analysis, we experienced no impairment on our indefinite life intangible during the years ended December 31, 2017 or 2016. |
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, 2017 or 2016 . Our policy regarding income tax interest and penalties is to expense those items as other expense. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), which makes broad and complex changes to the U.S. tax code. Certain income tax effects of the 2017 Tax Act are reflected in the Company’s financial results in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), which provides SEC staff guidance regarding the application of Accounting Standards Codification Topic 740 Income Taxes (“ASC 740”). |
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, 2017 and 2016 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 ASU No. 2016-02, Leases (Topic 842). 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 determining the impacts of the new standard on our consolidated financial statements and the additional applicable disclosure requirements. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a five-step analysis on how 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. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard’s effective date for all entities, which changed the effectiveness to interim and annual reporting periods beginning after December 15, 2017. As a result, we adopted the guidance on January 1, 2018. The guidance offered two transition methods: a full retrospective approach to be applied to each prior reporting period presented or a modified retrospective approach where the cumulative effect of initially applying the standard is recognized at the date of initial application. We have selected the modified retrospective transition method. We have determined the impact of the new standard on our consolidated financial statements. Our approach included performing a detailed review of key contracts that are representative of our various revenue streams and comparing our historical accounting policies and practices to the new standard. Based upon our analysis, we have determined there will be no material financial impact upon adoption, but we will have a change in our disclosures under the new standard and have implemented new internal controls to ensure compliance under this new standard. 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 Accoun20
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | At December 31, 2017 and 2016 , inventory consisted of the following (in thousands): 2017 2016 Raw materials -current $ 22,813 $ 15,877 Raw materials - long term 2,829 2,488 Finished Goods 1,022 2,558 Work in process 2,389 2,998 Total $ 29,053 $ 23,921 |
Summary of Property and Equipment | The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue and the following table depicts the depreciation associated with each product line at December 31, 2017 , 2016 and 2015 (in thousands): 2017 2016 2015 Rentals $ 20,861 $ 21,325 $ 22,308 Sales 265 291 281 Service & Maintenance 21 25 16 Total $ 21,147 $ 21,641 $ 22,605 Property and equipment consists of the following at December 31, 2017 and 2016 (in thousands): Useful Lives (Years) 2017 2016 Land — $ 1,290 $ 169 Building 39 6,116 6,856 Leasehold improvements 39 808 794 Office equipment and furniture 5 1,490 1,454 Software 5 573 573 Machinery and equipment 7 3,133 3,111 Vehicles 3 5,516 6,063 Total 18,926 19,020 Less accumulated depreciation (11,274 ) (11,267 ) Total $ 7,652 $ 7,753 |
Schedule of Identified Finite-Lived Intangible Assets, Finite Lived | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2017 December 31, 2016 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,633 $ 872 $ 2,505 $ 1,508 $ 997 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,633 $ 1,526 $ 3,159 $ 1,508 $ 1,651 |
Schedule of Identified Indefinite-Lived Intangible Assets | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2017 December 31, 2016 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,633 $ 872 $ 2,505 $ 1,508 $ 997 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,633 $ 1,526 $ 3,159 $ 1,508 $ 1,651 |
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, 2017 2016 2015 Numerator: Net income $ 19,851 $ 6,469 $ 10,147 Denominator for basic net income per common share: Weighted average common shares outstanding 12,831 12,702 12,567 Denominator for diluted net income per share: Weighted average common shares outstanding 12,831 12,702 12,567 Dilutive effect of stock options and restricted shares 279 233 226 Diluted weighted average shares 13,110 12,935 12,793 Earnings per common share: Basic $ 1.55 $ 0.51 $ 0.81 Diluted $ 1.51 $ 0.50 $ 0.79 |
Rental Activity (Tables)
Rental Activity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rent Payments | Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2017 are as follows : Years Ending December 31, (in thousands) 2018 $ 6,494 2019 976 2020 543 2021 542 2022 542 Total $ 9,097 Remaining future minimum rental payments (excluding month to month) due under these leases are as follows: Years Ending December 31, (in thousands) 2018 $ 484 2019 122 2020 9 2021 1 Total $ 616 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue and the following table depicts the depreciation associated with each product line at December 31, 2017 , 2016 and 2015 (in thousands): 2017 2016 2015 Rentals $ 20,861 $ 21,325 $ 22,308 Sales 265 291 281 Service & Maintenance 21 25 16 Total $ 21,147 $ 21,641 $ 22,605 Property and equipment consists of the following at December 31, 2017 and 2016 (in thousands): Useful Lives (Years) 2017 2016 Land — $ 1,290 $ 169 Building 39 6,116 6,856 Leasehold improvements 39 808 794 Office equipment and furniture 5 1,490 1,454 Software 5 573 573 Machinery and equipment 7 3,133 3,111 Vehicles 3 5,516 6,063 Total 18,926 19,020 Less accumulated depreciation (11,274 ) (11,267 ) Total $ 7,652 $ 7,753 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2017 , 2016 and 2015 , consists of the following (in thousands): 2017 2016 2015 Current provision: Federal $ 3,074 $ 4,280 $ 6,440 State 260 429 523 Total current provision 3,334 4,709 6,963 Deferred provision: Federal benefit (21,582 ) (2,713 ) (1,846 ) Total deferred benefit (21,582 ) (2,713 ) (1,846 ) Total (benefit) provision $ (18,248 ) $ 1,996 $ 5,117 |
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, 2017 and 2016 , are as follows (in thousands): 2017 2016 Deferred income tax assets: Stock Compensation $ 843 $ 664 Other 201 84 Total deferred income tax assets $ 1,044 $ 748 Deferred income tax liabilities: Property and equipment $ (32,377 ) (53,120 ) Goodwill and other intangible assets (604 ) (973 ) Other (226 ) (400 ) Total deferred income tax liabilities (33,207 ) (54,493 ) Net deferred income tax liabilities $ (32,163 ) $ (53,745 ) |
Effective Income Tax Rate Reconciliation | The effective tax rate for the years ended December 31, 2017 , 2016 and 2015 , differs from the statutory rate as follows: 2017 2016 2015 Statutory rate 34.0 % 34.0 % 34.0 % State and local taxes 1.5 % 1.6 % 1.5 % Domestic production credit (14.3 )% (5.4 )% (3.6 )% Permanent stock differences (13.4 )% 0.3 % 1.1 % Other (1.5 )% (6.9 )% 0.5 % Effective rate prior to tax act 6.3 % 23.6 % 33.5 % Deferred re-measurement for rate change (1,144.4 )% — % — % Effective rate (1,138.1 )% 23.6 % 33.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | A summary of all restricted stock/units activity as of December 31, 2015, 2016 and 2017 and changes during the years then ended are presented below. Number Weighted Average Weighted Aggregate (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 145,588 $ 19.17 9.12 $ 3,246 Granted 139,451 $ 21.34 — $ 3,007 Vested (145,558 ) $ 19.17 — $ 2,963 Canceled/Forfeited — $ — — $ — Outstanding, December 31, 2016 139,451 $ 21.34 9.13 $ 4,483 Granted 126,432 27.06 — 3,421 Vested (81,494 ) 21.20 — 2,361 Canceled/Forfeited — — — — Outstanding, December 31, 2017 184,389 $ 25.32 8.83 $ 4,831 |
Stock Options Fair Value Assumptions | 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: 2017 2015 Risk free rate 2.12 % 1.56 % Expected life 6 years 6 years Expected volatility 39.59 % 45.07 % Expected dividend yield — — |
Summary of Option Activity | A summary of all option activity as of December 31, 2015, 2016 and 2017 and changes during the years then ended are presented below: Number Weighted Average Weighted Aggregate (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 $ — Outstanding, December 31, 2015 414,769 $ 19.07 5.08 $ 1,814 Granted — $ — Exercised (62,083 ) $ 16.79 625 Canceled/Forfeited (2,500 ) $ 22.90 — Outstanding, December 31, 2016 350,186 $ 19.45 4.25 $ 4,453 Granted 32,750 28.15 Exercised (55,666 ) 20.12 446 Outstanding, December 31, 2017 327,270 $ 20.21 4.28 $ 2,255 Exercisable, December 31, 2017 278,689 $ 19.12 3.54 $ 2,203 |
Summary of Stock Options Outstanding | The following table summarizes information about our stock options outstanding at December 31,: 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 65,852 1.56 $ 9.82 65,852 $ 9.82 $15.71-17.81 72,750 1.79 $ 17.53 72,750 $ 17.53 $17.82-20.48 56,750 3.54 $ 19.36 56,750 $ 19.36 $20.49-33.36 131,918 7.34 $ 27.23 83,337 $ 27.70 327,270 4.28 $ 20.21 278,689 $ 19.12 |
Summary of the Status of Unvested Stock Options | The summary of the status of our unvested stock options as of December 31, 2017 and changes during the year then ended is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 50,833 $ 12.67 Granted 32,750 $ 11.93 Vested (35,002 ) $ 13.73 Unvested at December 31, 2017 48,581 $ 11.41 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2017 are as follows : Years Ending December 31, (in thousands) 2018 $ 6,494 2019 976 2020 543 2021 542 2022 542 Total $ 9,097 Remaining future minimum rental payments (excluding month to month) due under these leases are as follows: Years Ending December 31, (in thousands) 2018 $ 484 2019 122 2020 9 2021 1 Total $ 616 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 2017 Q1 Q2 Q3 Q4 Total Total revenue $ 18,902 $ 16,218 $ 15,913 $ 16,660 $ 67,693 Operating income 343 414 593 217 1,567 Net income (1) 252 375 522 18,702 19,851 Net income per share - Basic 0.02 0.03 0.04 1.46 1.55 Net income per share - Diluted 0.02 0.03 0.04 1.42 1.51 (1) The increase in fourth quarter net income is largely a result of the 2017 Tax Act, see Note 7. 2016 Q1 Q2 Q3 Q4 Total Total revenue $ 21,576 $ 17,194 $ 16,181 $ 16,703 $ 71,654 Operating income 3,767 1,873 1,823 967 8,430 Net income 2,541 1,259 1,509 1,160 6,469 Net income per share - Basic 0.20 0.10 0.12 0.09 0.51 Net income per share - Diluted 0.20 0.10 0.12 0.09 0.50 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 569,000 | $ 597,000 | $ 569,000 | $ 597,000 | |||||||
Revenues recognized | 16,660,000 | $ 15,913,000 | $ 16,218,000 | $ 18,902,000 | 16,703,000 | $ 16,181,000 | $ 17,194,000 | $ 21,576,000 | 67,693,000 | 71,654,000 | $ 95,919,000 |
Product warranty reserves | 65,000 | 103,000 | 65,000 | 103,000 | |||||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | 0 | |||||||
Number of business segments | segment | 1 | ||||||||||
Bill and Hold Arrangement | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues recognized | $ 4,600,000 | $ 5,600,000 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Concentration Risk) (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Oxy | Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 19.00% | 10.00% |
Oxy | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 15.00% | |
Devon | Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 21.00% | 21.00% |
APR Energy LLC | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
BP America | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Inventory) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)compressor | Dec. 31, 2016USD ($)compressor | |
Inventory [Line Items] | ||
Inventory valuation reserves, deductions | $ 15 | $ 15 |
Available-for-sale or rental, compressor units | compressor | 7 | 7 |
Raw materials -current | $ 22,813 | $ 15,877 |
Long-Term Inventory, net of allowance for obsolescence of $15 and $15, respectively | 2,829 | 2,488 |
Finished Goods | 1,022 | 2,558 |
Work in process | 2,389 | 2,998 |
Inventory | 29,053 | 23,921 |
Rental Equipment [Member] | ||
Inventory [Line Items] | ||
Work in process | $ 6,400 | $ 1,900 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Property and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 21,147,000 | $ 21,641,000 | $ 22,605,000 |
Impairment of long-lived assets held-for-use | $ 0 | 0 | 0 |
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 | 39 years | ||
Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful life | 15 years | ||
Rentals | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 20,861,000 | 21,325,000 | 22,308,000 |
Sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 265,000 | 291,000 | 281,000 |
Service & Maintenance | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 21,000 | $ 25,000 | $ 16,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Intangibles) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets [Line Items] | ||
Impairment of goodwill | $ 0 | $ 0 |
Intangibles, net of accumulated amortization | 1,526,000 | 1,651,000 |
Amortization expense | 125,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
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 | 1,633,000 | 1,508,000 |
Net Book Value | 1,526,000 | 1,651,000 |
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 | 7 years | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Value | $ 2,505,000 | $ 2,505,000 |
Accumulated Amortization | 1,633,000 | 1,508,000 |
Net Book Value | $ 872,000 | $ 997,000 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Per Share Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income | $ 18,702 | $ 522 | $ 375 | $ 252 | $ 1,160 | $ 1,509 | $ 1,259 | $ 2,541 | $ 19,851 | $ 6,469 | $ 10,147 |
Denominator for basic net income per common share: | |||||||||||
Weighted average common shares outstanding, Basic (in shares) | 12,831,000 | 12,702,000 | 12,567,000 | ||||||||
Denominator for diluted net income per share: | |||||||||||
Weighted average common shares outstanding, Basic (in shares) | 12,831,000 | 12,702,000 | 12,567,000 | ||||||||
Dilutive effect of stock options and restricted shares (in shares) | 279,000 | 233,000 | 226,000 | ||||||||
Weighted average common shares outstanding, Diluted (in shares) | 13,110,000 | 12,935,000 | 12,793,000 | ||||||||
Earnings per common share: | |||||||||||
Earnings per share - Basic (in dollars per share) | $ 1.46 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.09 | $ 0.12 | $ 0.10 | $ 0.20 | $ 1.55 | $ 0.51 | $ 0.81 |
Earnings per share - Diluted (in dollars per share) | $ 1.42 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.09 | $ 0.12 | $ 0.10 | $ 0.20 | $ 1.51 | $ 0.50 | $ 0.79 |
Stock Options | |||||||||||
Earnings per common share: | |||||||||||
Anti-dilutive securities (in shares) | 83,917 | 51,167 | 107,500 | ||||||||
Range of exercise prices, lower limit (in dollars per share) | $ 28.15 | $ 30.41 | $ 22.90 | ||||||||
Range of exercise prices, upper limit (in dollars per share) | $ 33.36 | $ 33.36 | $ 33.36 |
Rental Activity (Details)
Rental Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 21,147 | $ 21,641 | $ 22,605 |
2,018 | 6,494 | ||
2,019 | 976 | ||
2,020 | 543 | ||
2,021 | 542 | ||
2,022 | 542 | ||
Total | $ 9,097 | ||
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 | 24 months | ||
Rental Equipment | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 20,000 | $ 20,200 | $ 21,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 18,926 | $ 19,020 | |
Less accumulated depreciation | (11,274) | (11,267) | |
Property and equipment, net | 7,652 | 7,753 | |
Depreciation | 21,147 | 21,641 | $ 22,605 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,290 | 169 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 39 years | ||
Property and equipment, gross | $ 6,116 | 6,856 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 39 years | ||
Property and equipment, gross | $ 808 | 794 | |
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 5 years | ||
Property and equipment, gross | $ 1,490 | 1,454 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 5 years | ||
Property and equipment, gross | $ 573 | 573 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 7 years | ||
Property and equipment, gross | $ 3,133 | 3,111 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 3 years | ||
Property and equipment, gross | $ 5,516 | 6,063 | |
Property, Plant, and Equipment, Excluding Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,200 | $ 1,400 | $ 1,600 |
Retirement of Long-Lived Asse35
Retirement of Long-Lived Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)compressor | Dec. 31, 2015USD ($)compressor | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Loss on retirement of rental equipment | $ 0 | $ 545 | $ 4,370 |
Rental Compressor Unit | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Estimated fair value of long-lived assets | $ 242 | $ 967 | |
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 | 63 | 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 | $ 545 | $ 4,400 |
Deferred Compensation Plans (De
Deferred Compensation Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement with individual, cash awards granted, percentage | 90.00% | ||
Cash surrender value of life insurance | $ 894,000 | $ 207,000 | |
Gain on company owned life insurance | $ 67,000 | 14,000 | $ 0 |
Restricted Stock | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement, deferred shares | 97,011 | ||
Other noncurrent liabilities | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation liability, current and noncurrent | $ 866,000 | 208,000 | |
Other income | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Gain on company owned life insurance | $ 66,400 | $ 13,900 |
Credit Facility (Details)
Credit Facility (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit | $ 0 | $ 417,000 |
Revolving Credit Facility | ||
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 | 1.60% | |
Revolving Credit Facility | LIBOR-based Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate, applicable margin | 1.50% | |
Revolving Credit Facility | CB Floating Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate, applicable margin | 1.25% | |
Revolving Credit Facility | 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 | |
Revolving Credit Facility | Maximum | LIBOR-based Rate | ||
Line of Credit Facility [Line Items] | ||
Reference rate, number of allowable LIBOR-based borrowings outstanding (in loans) | loan | 3 | |
Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Minimum commitment coverage ratio allowed | 2 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current provision: | |||
Federal | $ 3,074 | $ 4,280 | $ 6,440 |
State | 260 | 429 | 523 |
Total current provision | 3,334 | 4,709 | 6,963 |
Deferred provision: | |||
Federal benefit | (21,582) | (2,713) | (1,846) |
Total deferred benefit | (21,582) | (2,713) | (1,846) |
Total income tax expense (benefit) | $ (18,248) | $ 1,996 | $ 5,117 |
Income Taxes Income Taxes (2017
Income Taxes Income Taxes (2017 Tax Act) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit) | $ (18.4) |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Stock Compensation | $ 843 | $ 664 |
Other | 201 | 84 |
Total deferred income tax assets | 1,044 | 748 |
Deferred income tax liabilities: | ||
Property and equipment | (32,377) | (53,120) |
Goodwill and other intangible assets | (604) | (973) |
Other | (226) | (400) |
Total deferred income tax liabilities | (33,207) | (54,493) |
Net deferred income tax liabilities | $ (32,163) | $ (53,745) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 34.00% | 34.00% | 34.00% |
State and local taxes | 1.50% | 1.60% | 1.50% |
Domestic production credit | (14.30%) | (5.40%) | (3.60%) |
Permanent stock differences | (13.40%) | ||
Permanent stock differences | 0.30% | 1.10% | |
Other | (1.50%) | (6.90%) | 0.50% |
Effective rate prior to tax act | 6.30% | 23.60% | 33.50% |
Deferred re-measurement for rate change | (1144.40%) | 0.00% | 0.00% |
Effective rate | (1138.10%) | 23.60% | 33.50% |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - Paint and Coatings - USD ($) $ in Thousands | Jul. 30, 2008 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Long-term Liabilities | |||
Long-term purchase commitment, amount | $ 4,800 | ||
Cash received from supplier as discount toward future purchases | 300 | ||
Liability related to deferred discount | $ 300 | $ 92 | $ 115 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
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. 23, 2017 | Feb. 14, 2017 | Jun. 18, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 126,432 | 139,451 | 145,558 | |||
Share-based compensation expense | $ 3,675 | $ 1,793 | $ 2,944 | |||
Total unrecognized compensation expense | $ 1,385 | |||||
Unrecognized compensation cost related to stock options, weighted average period for recognition | 15 months | |||||
Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 70,464 | |||||
Award vesting period | 3 years | |||||
Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 20,000 | |||||
Vice President of Technical Services | ||||||
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 | 3 years | |||||
Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted | 15,968 | |||||
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 (in shares) | 162,770 |
Stock-Based Compensation (Res45
Stock-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | ||||
Outstanding, Beginning Balance (in shares) | 139,451 | 145,588 | 99,238 | |
Granted (in shares) | 126,432 | 139,451 | 145,558 | |
Vested (in shares) | (81,494) | (145,558) | (99,238) | |
Canceled/Forfeited (in shares) | 0 | 0 | 0 | |
Outstanding, Ending Balance (in shares) | 184,389 | 139,451 | 145,588 | 99,238 |
Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance (in dollars per share) | $ 21.34 | $ 19.17 | $ 28.22 | |
Granted (in dollars per share) | 27.06 | 21.34 | 19.17 | |
Vested (in dollars per share) | 21.20 | 19.17 | 28.22 | |
Canceled/Forfeited (in dollars per share) | 0 | 0 | 0 | |
Outstanding, Ending Balance (in dollars per share) | $ 25.32 | $ 21.34 | $ 19.17 | $ 28.22 |
Weighted Average Remaining Contractual Life (years) | ||||
Weighted Average Remaining Contractual Life (years) | 8 years 8 months 60 days | 9 years 1 month 18 days | 9 years 1 month 12 days | 9 years |
Aggregate Intrinsic Value (in thousands) | ||||
Aggregate Intrinsic Value, Outstanding | $ 4,831 | $ 4,483 | $ 3,246 | $ 2,286 |
Aggregate Intrinsic Value, Granted | 3,421 | 3,007 | 2,886 | |
Aggregate Intrinsic Value, Vested | $ 2,361 | $ 2,963 | $ 2,100 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 16, 2016 | Jun. 16, 2009 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 1998 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 11.93 | $ 10.33 | ||||
Total intrinsic value of options exercised | $ 446 | $ 625 | $ 481 | |||
Proceeds from exercise of stock options | 1,120 | 1,042 | 776 | |||
Unrecognized compensation cost related to stock options | 282 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 363 | $ 506 | $ 601 | |||
Unrecognized compensation cost related to stock options, weighted average period for recognition | 2 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 | 1998 Stock Option Plan | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 1,000,000 | 550,000 | ||||
Additional shares authorized | 250,000 | 200,000 | ||||
Number of shares available for grant | 313,169 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk free rate | 2.12% | 1.56% |
Expected life | 6 years | 6 years |
Expected volatility | 39.59% | 45.07% |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation (Sto48
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | ||||
Outstanding, beginning of period (in shares) | 350,186 | 414,769 | 432,269 | |
Granted (in shares) | 32,750 | 0 | 50,000 | |
Exercised (in shares) | (55,666) | (62,083) | (66,000) | |
Canceled/Forfeited (in shares) | (2,500) | (1,500) | ||
Outstanding, end of period (in shares) | 327,270 | 350,186 | 414,769 | 432,269 |
Exercisable (in shares) | 278,689 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | $ 19.45 | $ 19.07 | $ 17.55 | |
Granted (in dollars per share) | 28.15 | 0 | 22.90 | |
Exercised (in dollars per share) | 20.12 | 16.79 | 11.76 | |
Canceled/Forfeited, weighted average exercise price (in dollars per share) | 22.90 | 30.41 | ||
Outstanding, end of period (in dollars per share) | 20.21 | $ 19.45 | $ 19.07 | $ 17.55 |
Exercisable (in dollars per share) | $ 19.12 | |||
Weighted Average Remaining Contractual Life (years) | ||||
Outstanding, weighted average remaining contractual life | 4 years 2 months 41 days | 4 years 2 months 29 days | 5 years 28 days | 4 years 8 months 81 days |
Exercisable, weighted average remaining contractual life | 3 years 5 months 45 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, aggregate intrinsic value | $ 2,255 | $ 4,453 | $ 1,814 | $ 2,786 |
Exercised, aggregate intrinsic value | 446 | $ 625 | $ 481 | |
Exercisable, aggregate intrinsic value | $ 2,203 |
Stock-Based Compensation (Sto49
Stock-Based Compensation (Stock Options by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 327,270 |
Options outstanding, weighted average remaining contractual life | 4 years 2 months 43 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 20.21 |
Options exercisable, shares | shares | 278,689 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.12 |
Range of Exercise Prices: $0.01 - 15.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit (in dollars per share) | 0.01 |
Range of exercise prices, upper limit (in dollars per share) | $ 15.70 |
Options outstanding, shares | shares | 65,852 |
Options outstanding, weighted average remaining contractual life | 1 year 5 months 52 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.82 |
Options exercisable, shares | shares | 65,852 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 9.82 |
Range of Exercise Prices: $15.71 - 17.81 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit (in dollars per share) | 15.71 |
Range of exercise prices, upper limit (in dollars per share) | $ 17.81 |
Options outstanding, shares | shares | 72,750 |
Options outstanding, weighted average remaining contractual life | 1 year 7 months 75 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 17.53 |
Options exercisable, shares | shares | 72,750 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 17.53 |
Range of Exercise Prices: $17.82 - 20.48 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit (in dollars per share) | 17.82 |
Range of exercise prices, upper limit (in dollars per share) | $ 20.48 |
Options outstanding, shares | shares | 56,750 |
Options outstanding, weighted average remaining contractual life | 3 years 5 months 45 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.36 |
Options exercisable, shares | shares | 56,750 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.36 |
Range of Exercise Prices: $20.49 - 33.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit (in dollars per share) | 20.49 |
Range of exercise prices, upper limit (in dollars per share) | $ 33.36 |
Options outstanding, shares | shares | 131,918 |
Options outstanding, weighted average remaining contractual life | 7 years 3 months 33 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 27.23 |
Options exercisable, shares | shares | 83,337 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 27.70 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Unvested Stock Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Unvested, beginning of period (in shares) | 50,833 | ||
Granted (in shares) | 32,750 | 0 | 50,000 |
Vested (in shares) | (35,002) | ||
Unvested, end of period (in shares) | 48,581 | 50,833 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 12.67 | ||
Granted (in dollars per share) | 11.93 | $ 10.33 | |
Vested (in dollars per share) | 13.73 | ||
Unvested, end of period (in dollars per share) | $ 11.41 | $ 12.67 |
Commitments and Contingencies51
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 301 | $ 295 | $ 387 |
Operating leases, maximum term | 5 years | ||
Operating leases, rent expense | $ 310 | $ 325 | $ 375 |
Commitments and Contingencies52
Commitments and Contingencies (Future Lease Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 484 |
2,019 | 122 |
2,020 | 9 |
2,021 | 1 |
Total | $ 616 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue | $ 16,660 | $ 15,913 | $ 16,218 | $ 18,902 | $ 16,703 | $ 16,181 | $ 17,194 | $ 21,576 | $ 67,693 | $ 71,654 | $ 95,919 |
Operating income | 217 | 593 | 414 | 343 | 967 | 1,823 | 1,873 | 3,767 | 1,567 | 8,430 | 15,147 |
Net income | $ 18,702 | $ 522 | $ 375 | $ 252 | $ 1,160 | $ 1,509 | $ 1,259 | $ 2,541 | $ 19,851 | $ 6,469 | $ 10,147 |
Net income per share - Basic (in dollars per share) | $ 1.46 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.09 | $ 0.12 | $ 0.10 | $ 0.20 | $ 1.55 | $ 0.51 | $ 0.81 |
Net income per share - Diluted (in dollars per share) | $ 1.42 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.09 | $ 0.12 | $ 0.10 | $ 0.20 | $ 1.51 | $ 0.50 | $ 0.79 |