Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 05, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NATURAL GAS SERVICES GROUP INC | ||
Entity Central Index Key | 0001084991 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 13,193,044 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 306,723,300 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 52,628 | $ 69,208 |
Trade accounts receivable, net of allowance for doubtful accounts of $291 and $569, respectively | 7,219 | 8,534 |
Inventory | 30,974 | 26,224 |
Prepaid income taxes | 3,148 | 3,443 |
Prepaid expenses and other | 2,430 | 817 |
Total current assets | 96,399 | 108,226 |
Long-Term Inventory, net of allowance for obsolescence of $19 and $15, respectively | 3,980 | 2,829 |
Rental equipment, net of accumulated depreciation of $165,428 and $145,851, respectively | 175,886 | 167,099 |
Property and equipment, net of accumulated depreciation of $11,556 and $11,274, respectively | 16,587 | 7,652 |
Goodwill | 10,039 | 10,039 |
Intangibles, net of accumulated amortization of $1,758 and $1,632, respectively | 1,401 | 1,526 |
Other assets | 1,109 | 939 |
Total assets | 305,401 | 298,310 |
Current Liabilities: | ||
Accounts payable | 2,122 | 4,162 |
Accrued liabilities | 8,743 | 3,106 |
Deferred income | 81 | 185 |
Total current liabilities | 10,946 | 7,453 |
Line of credit | 417 | 417 |
Deferred income tax liability | 32,158 | 32,163 |
Other long-term liabilities | 1,699 | 958 |
Total liabilities | 45,220 | 40,991 |
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; 13,005 and 12,880 shares issued and outstanding, respectively | 130 | 129 |
Additional paid-in capital | 107,760 | 105,325 |
Retained earnings | 152,291 | 151,865 |
Total stockholders' equity | 260,181 | 257,319 |
Total liabilities and stockholders' equity | $ 305,401 | $ 298,310 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Allowance for doubtful accounts | $ 291 | $ 569 |
Allowance for inventory obsolescence | 19 | 15 |
Assets, Noncurrent [Abstract] | ||
Accumulated depreciation, rental equipment | 165,428 | 145,851 |
Accumulated depreciation, property and equipment | 11,556 | 11,274 |
Accumulated amortization, intangibles | $ 1,758 | $ 1,632 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 13,005,000 | 12,880,000 |
Common stock, shares outstanding (in shares) | 13,005,000 | 12,880,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Revenues | $ 65,478 | $ 67,693 | $ 71,654 |
Operating costs and expenses: | |||
Cost of rentals, exclusive of depreciation stated separately below | 20,746 | 18,087 | 20,350 |
Cost of sales, exclusive of depreciation stated separately below | 12,564 | 16,286 | 11,124 |
Cost of service and maintenance, exclusive of depreciation stated separately below | 385 | 370 | 398 |
Loss on retirement of rental equipment | 0 | 0 | 545 |
Selling, general and administrative expenses | 9,096 | 10,081 | 9,011 |
Depreciation and amortization | 22,049 | 21,302 | 21,796 |
Total operating costs and expenses | 64,840 | 66,126 | 63,224 |
Operating income | 638 | 1,567 | 8,430 |
Other income | |||
Interest expense | (69) | (14) | (8) |
Other income | 182 | 50 | 43 |
Total other income, net | 113 | 36 | 35 |
Income before provision for income taxes | 751 | 1,603 | 8,465 |
Provision for income taxes | |||
Current | (248) | 3,334 | 4,709 |
Deferred | 573 | (21,582) | (2,713) |
Total income tax expense (benefit) | 325 | (18,248) | 1,996 |
Net income | $ 426 | $ 19,851 | $ 6,469 |
Earnings per share: | |||
Earnings per share - Basic (in dollars per share) | $ 0.03 | $ 1.55 | $ 0.51 |
Earnings per share - Diluted (in dollars per share) | $ 0.03 | $ 1.51 | $ 0.50 |
Weighted average shares outstanding: | |||
Weighted average shares outstanding, Basic (in shares) | 12,965 | 12,831 | 12,702 |
Weighted average shares outstanding, Diluted (in shares) | 13,233 | 13,110 | 12,935 |
Rental income | |||
Revenue: | |||
Revenues | $ 47,766 | $ 46,046 | $ 56,717 |
Sales | |||
Revenue: | |||
Revenues | 16,269 | 20,208 | 13,621 |
Service and maintenance income | |||
Revenue: | |||
Revenues | $ 1,443 | $ 1,439 | $ 1,316 |
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 (in shares) at Dec. 31, 2015 | 0 | ||||
Common stock, shares outstanding, beginning of period (in shares) at Dec. 31, 2015 | 12,603,000 | ||||
Balance, beginning of period at Dec. 31, 2015 | $ 223,981 | $ 0 | $ 126 | $ 98,310 | $ 125,545 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares (in 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 (in shares) | 99,000 | ||||
Issuance of restricted stock | 0 | ||||
Tax benefit 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 (in shares) at Dec. 31, 2016 | 0 | ||||
Common stock, shares outstanding, end of period (in shares) at Dec. 31, 2016 | 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 (in shares) | 56,000 | ||||
Exercise of common stock options | 1,120 | 1,120 | |||
Compensation expense on common stock options | 363 | 363 | |||
Issuance of restricted stock, shares (in 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 (in shares) at Dec. 31, 2017 | 0 | 0 | |||
Common stock, shares outstanding, end of period (in shares) 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options, shares (in shares) | 38,000 | ||||
Exercise of common stock options | 680 | 680 | |||
Compensation expense on common stock options | 159 | 159 | |||
Issuance of restricted stock, shares (in shares) | 87,000 | ||||
Issuance of restricted stock | 0 | ||||
Compensation expense on restricted common stock | 2,226 | $ 1 | 2,225 | ||
Taxes paid related to net shares settlement of equity awards | (629) | (629) | |||
Net income | $ 426 | 426 | |||
Preferred stock, shares outstanding, end of period (in shares) at Dec. 31, 2018 | 0 | 0 | |||
Common stock, shares outstanding, end of period (in shares) at Dec. 31, 2018 | 13,005,000 | 13,005,000 | |||
Balance, end of period at Dec. 31, 2018 | $ 260,181 | $ 0 | $ 130 | $ 107,760 | $ 152,291 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 426 | $ 19,851 | $ 6,469 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,049 | 21,302 | 21,796 |
Deferred taxes | (5) | (21,582) | (2,713) |
Gain on disposal of assets | (69) | (87) | (86) |
Loss on retirement of rental equipment | 0 | 0 | 545 |
Bad debt allowance | (185) | 90 | 61 |
Inventory allowance | 0 | 273 | 566 |
Stock based compensation | 2,385 | 4,038 | 2,299 |
(Loss) Gain on company owned life insurance | 154 | (67) | (14) |
Changes in assets (increase) decrease in: | |||
Trade accounts receivables | 1,500 | (1,246) | 1,668 |
Inventory | (5,757) | (5,350) | 1,131 |
Prepaid income taxes and prepaid expenses | (1,318) | (1,806) | (1,539) |
Changes in liabilities increase (decrease) in: | |||
Accounts payable and accrued liabilities | 3,597 | 3,410 | (439) |
Deferred income | (104) | (2,040) | 1,954 |
Other | 741 | 666 | 159 |
Tax benefit from equity compensation | 0 | 0 | (72) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 23,414 | 17,452 | 31,785 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of rental, property and equipment | (39,790) | (13,489) | (3,321) |
Purchase of company owned life insurance | (289) | (620) | (194) |
Proceeds from insurance claim | 0 | 1,231 | 0 |
Proceeds from sale of property and equipment | 69 | 87 | 101 |
NET CASH USED IN INVESTING ACTIVITIES | (40,010) | (12,791) | (3,414) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds of other long-term liabilities | (35) | (23) | (14) |
Proceeds from exercise of stock options | 680 | 1,120 | 1,042 |
Tax Benefit from equity compensation | 0 | 0 | 72 |
Taxes paid related to net share settlement of equity awards | (629) | (644) | (909) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 16 | 453 | 191 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (16,580) | 5,114 | 28,562 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 69,208 | 64,094 | 35,532 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 52,628 | 69,208 | 64,094 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid | 14 | 14 | 8 |
Income taxes paid | 85 | 3,725 | 5,825 |
NON-CASH TRANSACTIONS | |||
Transfer of rental equipment to inventory | $ 144 | $ 55 | $ 724 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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. Additionally, NGS conducts a yearly review of impairment of long-lived assets. Throughout the review, determining factors are based on estimates that can significantly impact the carrying value of these assets. 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 $291,000 and $569,000 at December 31, 2018 and 2017, respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance. Revenue Recognition Policy The Company adopted ASC 606, Revenue from Contracts with Customers ("ASC 606") on January, 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied ASC 606 using the cumulative effect method. We had no significant changes in our recognition of revenue at adoption and our review of all open revenue from contracts with customers on January 1, 2018 indicated we had no adjustment to be made. Therefore, our consolidated financial statements for 2017 reported under ASC 605 are comparable to the consolidated financial statements for 2018 reported under ASC 606, since an adjustment was not needed, except for the respective additional disclosures as detailed below. Revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties (i.e. sales and property taxes). We recognize revenue once a performance obligation has been satisfied and control over a product or service has transferred to the customer. Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our condensed consolidated income statement. Nature of goods and Services The following is a description of principal activities from which the Company generates its revenue: Rental Revenue. The Company generates revenue from renting compressors and flare systems to our customers. These contracts may also include a fee for servicing the compressor or flare during the rental contract. Our rental contracts range from six to twenty-four months, with revenue being recognized over time, in equal payments over the term of the contract. After the terms of the contract have expired, a customer may renew their contract or continue renting on a monthly basis thereafter. In accordance with generally accepted accounting principles, the revenue earned from servicing rental equipment is recognized in accordance with ASC 606, while the revenue earned from the rental of the equipment is recognized in accordance with ASC 840 - Leases. Sales Revenue. The Company generates revenue by the sale of custom/fabricated compressors, flare systems and parts, as well as, exchange/rebuilding customer owned compressors and sale of used rental equipment. Custom/fabricated compressors and flare systems - The Company designs and fabricates compressors and flares based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor or flare package is complete and shipped, or in accordance with a bill and hold arrangements the customer accepts title and assumes the risk and rewards of ownership. We request some of our customers to make progressive payments as the product is being built; these payments are recorded as a contract liability on the Deferred Income line on the consolidated balance sheet until control has been transferred. These contracts also may include an assurance warranty clause to guarantee the product is free from defects in material and workmanship for a set duration of time; this is a standard industry practice and is not considered a performance obligation. 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. Per the customer’s agreement change of control is passed to the customer once the equipment is complete and ready for shipment. 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 these agreements are consistent with the credit terms on all other sales. All control is shouldered by the customer and there are no exceptions to the customer’s commitment to accept and pay for the manufactured equipment. Revenues recognized related to bill and hold arrangements for the years ended December 31, 2018 and 2017 was approximately $8.3 million and $4.6 million, respectively. Parts - Revenue is recognized after the customer obtains control of the parts. Control is passed either by the customer taking physical possession or the parts being shipped. The amount of revenue recognized is not adjusted for expected returns, as our historical part returns have been de minimis. Exchange or rebuilding customer owned compressors - Based on the contract, the Company will either exchange a new/rebuilt compressor for the customer’s malfunctioning compressor or rebuild the customer’s compressor. Revenue is recognized after control of the replacement compressor has transferred to the customer by physical delivery, delivery and installment or shipment of the compressor. Used compressors or flares - From time to time, a customer may request to purchase a used compressor or flare out of our rental fleet. Revenue from the sale of rental equipment is recognized when the control has passed to the customer, when the customer has taken physical possession or the equipment has been shipped. Service and Maintenance Revenue. The Company provides routine or call-out services on customer owned equipment. Revenue is recognized after services in the contract are rendered. Payment terms for sales revenue and service and maintenance revenue discussed above are generally 30 to 60 days although terms for specific customers can vary. Also, the transaction prices are not subject to variable consideration constraints. Disaggregation of Revenue The following table shows the Company's revenue disaggregated by product or service type for the years ended: Year Ended December 31, (in thousands) 2018 2017 2016 Compressors - sales $ 10,994 $ 13,382 $ 10,038 Flares - sales 2,535 2,755 1,183 Other (Parts/Rebuilds) - sales 2,740 4,071 2,400 Service and maintenance 1 20,537 19,857 24,016 Total revenue from contracts with customers 36,806 40,065 37,637 Add: non-ASC 606 rental revenue 28,672 27,628 34,017 Total revenue $ 65,478 $ 67,693 $ 71,654 1 Service and maintenance includes revenue from servicing our own rental equipment contracted to customers and third party equipment. Contract Balances As of December 31, 2018 and December 31, 2017, we had the following receivables and deferred income from contracts with customers: December 31, 2018 December 31, 2017 (in thousands) Accounts Receivable Accounts receivable - contracts with customers $ 4,353 $ 5,454 Accounts receivable - non-ASC 606 3,157 3,649 Total Accounts Receivable 7,510 9,103 Less: Allowance for doubtful accounts (291) (569) Total Accounts Receivable, net 7,219 8,534 Deferred income $ 81 $ 185 The Company recognized $176,000 in revenue for the period ended December, 2018 that was included in deferred income at the beginning of 2018. For the period ended December 31, 2017, the Company recognized revenue of $1.9 million from amounts related to sales that were included in deferred income at the beginning of 2017. The increases (decreases) of accounts receivable and deferred income were primarily due to normal timing differences between our performance and the customers’ payments. T ransaction Price Allocated to the Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: (in thousands) 2020 2021 2022 2023 2024 Total Service and Maintenance $ 2,223 $ 1,842 $ 1,763 $ 704 $ — $ 6,532 All consideration from contracts with customers is included in the amounts presented above. The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. The Company applies the transition practical expedient in ASC 606-10-65-1(f)(3) and does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue for 2018. Contract Costs The Company applies the practical expedient in ASC 340-40-25-4 and recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general and administrative expense on our consolidated income statement. Major Customers and Concentration of Credit Risk Sales and rental income to Occidental Permian, LTD. ("Oxy") in 2018 amounted to 28% of revenue. Sales and rental income to 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. No other single customer accounted for more than 10% of our revenues in 2018, 2017 or 2016. Oxy amounted to 26% of our accounts receivable as of December 31, 2018. Oxy amounted to 14% of our accounts receivable as of December 31, 2017. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2018 and 2017. 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 $19,000 and $15,000 at December 31, 2018 and 2017, respectively. There were 7 newly completed compressor units at December 31, 2018 and December 31, 2017 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, 2018 and 2017, inventory consisted of the following (in thousands): 2018 2017 Raw materials - current $ 26,152 $ 22,813 Raw materials - long term 3,980 2,829 Finished Goods 1,022 1,022 Work in process 3,800 2,389 Total $ 34,954 $ 29,053 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, 2018 and 2017, we had $11.9 million and $6.4 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, 2018 , 2017 and 2015 (in thousands): 2018 2017 2016 Rentals $ 21,588 $ 20,861 $ 21,325 Sales 265 265 291 Service & Maintenance 22 21 25 Total $ 21,875 $ 21,147 $ 21,641 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, 2018, 2017 or 2016. 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. We performed a qualitative analysis each quarter of 2018 and our annual review was performed in the fourth quarter of 2018. We experienced no impairment of goodwill during the years ended December 31, 2018 or 2017. Intangibles At December 31, 2018 and 2017, NGSG had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2018 and 2017 was $1.4 million and $1.5 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 six years as of December 31, 2018. Amortization expense recognized in each of the years ending December 31, 2018, 2017, and 2016 was $125,000. Estimated amortization expense for the years 2019-2024 is $125,000 per year. NGSG has an intangible asset with a gross carrying value of $654,000 at December 31, 2018 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, 2018 December 31, 2017 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,758 $ 747 $ 2,505 $ 1,633 $ 872 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,758 $ 1,401 $ 3,159 $ 1,633 $ 1,526 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, 2018 or 2017. Separately, we reviewed our indefinite life intangible for impairment with our goodwill qualitative analysis, which we performed each quarter in 2018 due to a continued decline in our rental utilization and then annually in the fourth quarter of 2018. Based on this analysis, we experienced no impairment on our indefinite life intangible during the years ended December 31, 2018 or 2017. 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 $22,000 and $65,000 for December 31, 2018 and 2017, 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. We believe that the risk to our cash balance is minimal because we have chosen one of the nation’s largest most successful banks, with strong long-term ratings of Aa2/A+/AA. 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 2018, 2017 and 2016. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 426 $ 19,851 $ 6,469 Denominator for basic net income per common share: Weighted average common shares outstanding 12,965 12,831 12,702 Denominator for diluted net income per share: Weighted average common shares outstanding 12,965 12,831 12,702 Dilutive effect of stock options and restricted shares 268 279 233 Diluted weighted average shares 13,233 13,110 12,935 Earnings per common share: Basic $ 0.03 $ 1.55 $ 0.51 Diluted $ 0.03 $ 1.51 $ 0.50 In the year-ended December 31, 2018, options to purchase 82,167 shares of common stock with exercise prices ranging from $23.30 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, 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 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, 2018 or 2017. 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 made 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”). The effect of this change impacts our effective tax rate. The estimated impact on 2017 was to reduce the deferred tax liabilities by approximately $18.4 million and has been reflected in our effective tax rate reconciliation. At December 31, 2018, we have completed our accounting for the income tax effects of the Tax Act on our deferred tax assets in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 118 and ASC 740, and no material adjustments were required. During the fourth quarter of 2018, the Company discovered a potential uncertain tax position attributable to the deductibility of certain executive compensation expense for federal income tax purposes aggregating approximately $168,000, $149,000 and $230,000 for the years ended December 31, 2017, 2016 and 2015, respectively. As a result, in accordance with ASC Topic 740, during the fourth quarter of 2018, the Company recorded a tax adjustment of $547,000 and accrued penalty and interest expense of $55,000 attributable to the uncertain tax position. Management of the Company determined that effect of the potential uncertain tax position on previously reported results of operations for the years ended December 31, 2017 and 2016 was not material. 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, 2018 and 2017 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 2016-02, Leases (Topic 842). Under the new guidance, a lessee will be required to recognize assets and liabilities for finance 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. The ASU initially required a modified retrospective transition method where a company applies the new leases standard at the beginning of the earliest period presented in the financial statements, but in July 2018 the FASB issued ASU 2018-11. ASU 2018-11 added an optional transition method where a company applies the new leases standard at the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings. 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 adopted by the Company on January 1, 2019. We anticipate applying certain practical expedients provided by ASU 2016-02 that allow companies to not reassess leases that are in effect prior to adoption, the practical expedient in ASU 2018-11 that allows lessors to not separate lease and non-lease components for certain asset classes and the practical expedient in ASU 2018-20 that allows lessors to exclude third party taxes from lease revenue and lease-related expenses. We have reviewed and evaluated the impact the new standard will have on our accounting policies, internal controls and consolidated balance sheet. In our assessment, we determined an increase in lease assets and lease liabilities on the consolidated balance sheet will be approximately $700,000 at adoption. The adoption by the Company of Topic 842, in regards to the increase in liabilities, will not impact the debt covenants on our existing line of credit, as leases are not considered new indebtedness in our credit agreement as confirmed with our ban k. The new standard will create an adjustment to retained earnings produced by the difference in lease assets and lease liabilities brought on to the consolidated balance sheet. |
Rental Activity
Rental Activity | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Rental Activity | Rental ActivityWe 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 $20.9 million, $20.0 million and $20.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2018 are as follows: Years Ending December 31, (in thousands) 2019 $ 7,245 2020 $ 3,334 2021 $ 2,763 2022 $ 2,644 2023 $ 1,058 Total $ 17,044 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following at December 31, 2018 and 2017 (in thousands): Useful Lives (Years) 2018 2017 Land — $ 1,290 $ 1,290 Building 39 6,116 6,116 Leasehold improvements 39 808 808 Office equipment and furniture 5 1,492 1,490 Software 5 573 573 Machinery and equipment 7 3,275 3,133 Vehicles 3 6,270 5,516 Construction in Progress — 8,319 — Total 28,143 18,926 Less accumulated depreciation (11,556) (11,274) Total $ 16,587 $ 7,652 Depreciation expense for property and equipment was $1.1 million, $1.2 million and $1.4 million for the year ended December 31, 2018, 2017 and 2016, respectively. In 2017, the Midland fabrication facility suffered damages two separate times, due to hailstorms. We did not incur a loss, as our insurance proceeds fully covered the estimated cost for the repairs. 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, 2018 | |
Property, Plant and Equipment [Abstract] | |
Retirement of Long-Lived Assets | Retirement of Long-Lived AssetsDuring 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. From our review in 2018, we retired 13 units from our rental fleet. We recorded no loss on the retirement, due to the units being completely depreciated at the time of retirement. 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. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 $1.0 million and $894,000 as of December 31, 2018 and 2017, respectively, with a loss related to the policy of $153,900 and a gain of $66,400 reported in other income in our consolidated income statement for the year ended December 31, 2018 and 2017, 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 $1.1 million and $866,000 as of December 31, 2018 and 2017, respectively. The deferred obligation is included in other long-term liabilities in the consolidated balance sheet. For deferrals of restricted stock units, the plan does not allow for diversification, therefore, distributions are paid in shares of common stock and the obligation is carried at grant value. As of December 31, 2018, 101,895 unvested restricted stock units have been deferred of which 34,732 units have been released and issued to the deferred compensation plan with a value of $871,300 . |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 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, 2018, 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, 2018 our balance on the line of credit was $417,000. Our weighted average interest rate for the year ended December 31, 2018 was 3.81%. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the years ended December 31, 2018, 2017 and 2016, consists of the following (in thousands): 2018 2017 2016 Current provision: Federal $ (164) $ 3,074 $ 4,280 State (84) 260 429 Total current (benefit) provision (248) 3,334 4,709 Deferred provision: Federal expense (benefit) 573 (21,582) (2,713) Total deferred expense (benefit) 573 (21,582) (2,713) Total expense (benefit) provision $ 325 $ (18,248) $ 1,996 On December 22, 2017, the U.S. government enacted the 2017 Tax Act. The 2017 Tax Act made broad and complex changes to the U.S. tax code that affected the Company’s 2017 financial results. The 2017 Tax Act also established 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 million 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. We completed our detailed analysis in 2018 with no material adjustments. The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of December 31, 2018 and 2017, are as follows (in thousands): 2018 2017 Deferred income tax assets: Net operating loss carryover $ 2,415 $ — Stock Compensation 746 843 Other 441 201 Total deferred income tax assets $ 3,602 $ 1,044 Deferred income tax liabilities: Property and equipment $ (34,968) (32,377) Goodwill and other intangible assets (573) (604) Other (219) (226) Total deferred income tax liabilities (35,760) (33,207) Net deferred income tax liabilities $ (32,158) $ (32,163) The effective tax rate for the years ended December 31, 2018, 2017 and 2016, differs from the statutory rate as follows: 2018 2017 2016 Statutory rate 21.0 % 34.0 % 34.0 % State and local taxes 1.5 % 1.5 % 1.6 % Uncertain tax position 72.9 % — % — % Research and development credit (48.3) % — % (7.5) % Stock based compensation (5.2) % (13.4) % 0.3 % Nondeductible compensation 4.1 % — % — % Domestic production credit — % (14.3) % (5.4) % Other (2.7) % (1.5) % 0.6 % Effective rate 43.3 % 6.3 % 23.6 % Deferred re-measurement for rate change — % (1,144.4) % — % Effective rate 43.3 % (1,138.1) % 23.6 % During the fourth quarter of 2018, the Company discovered a potential uncertain tax position attributable to the deductibility of certain executive compensation expense for federal income tax purposes aggregating approximately $168,000, $149,000 and $230,000 for the years ended December 31, 2017, 2016 and 2015, respectively. As a result, in accordance with ASC Topic 740, during the fourth quarter of 2018, the Company recorded a tax adjustment of $547,000 and accrued penalty and interest expense of $55,000 attributable to the uncertain tax position. Management of the Company determined that effect of the potential uncertain tax position on previously reported results of operations for the years ended December 31, 2017 and 2016 was not material. We account for uncertain tax positions in accordance with guidance in FASB ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): Balance at January 1, 2018 $ — Additions based on tax positions related to current year 31 Additions to tax positions of prior years 547 Balance at December 31, 2018 $ 578 Our policy regarding income tax interest and penalties is to expense those items as incurred. During the years ended December 31, 2018, 2017 and 2016, there were no significant income tax interest or penalty items in the statement of income. We had a regular income tax net operating loss carry forward of $10.7 million for federal income taxes as of December 31, 2018. This net operating loss will be carried forward indefinitely but subject to 80% limitation. |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | Other Long-term LiabilitiesWe 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 $57,000 and $92,000 as of December 31, 2018 and 2017, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017, there were no issued or outstanding preferred shares. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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 2017 performance, Mr. Taylor, was awarded 84,700 restricted shares/units on March 15, 2018, which vest over three years, in equal installments beginning March 15, 2019. On March 15, 2018, 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 15, 2019. We also awarded and issued 16,288 shares of restricted common stock/units to our Board of Directors as partial payment for 2018 directors' fees. The restricted stock/units issued to our directors vests over one year, in quarterly installments, beginning March 31, 2019. Compensation expense related to the restricted shares/units was approximately $2,226,000, $3,675,000 and $1,793,000 for the years ended December 31, 2018, 2017, and 2016, respectively. As of December 31, 2018, there was a total of approximately $2,620,000 of unrecognized compensation expense related to the nonvested portion of these restricted shares/units. This expense is expected to be recognized over the next three years and a quarter. As of December 31, 2018, 45,533 shares were still available for issuance under the Plan. A summary of all restricted stock/units activity as of December 31, 2016, 2017 and 2018 and changes during the years then ended are presented below. Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 Granted 140,988 24.55 — 3,461 Vested (110,747) 23.97 — 2,806 Canceled/Forfeited — — — — Outstanding, December 31, 2018 214,630 $ 25.51 8.85 $ 3,529 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 to 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, 2018, 318,503 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 year ended December 31, are as follows: 2017 Risk free rate 2.12 % Expected life 6 years Expected volatility 39.59 % Expected dividend yield — There were no stock option grants made in 2018 or 2016. A summary of all option activity as of December 31, 2016, 2017 and 2018 and changes during the years then ended are presented below: Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 Granted — — Exercised (38,250) 17.19 216 Canceled/Forfeited (5,334) 24.02 — Outstanding, December 31, 2018 283,686 $ 20.46 3.58 $ 434 Exercisable, December 31, 2018 262,821 $ 19.85 3.22 $ 434 The weighted average grant date fair value of options granted during the years was $11.93 in 2017 and none in 2018. 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, 2018, 2017, and 2016 was approximately $216,000, $446,000, and $625,000 respectively. Cash received from stock options exercised during the years ended December 31, 2018, 2017, and 2016 was approximately $680,000, $1.12 million, and $1.0 million, respectively. The following table summarizes information about our stock options outstanding at December 31, 2018: 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 64,852 0.52 $ 9.75 64,852 $ 9.75 $15.71-17.81 42,000 1.57 $ 17.54 42,000 $ 17.54 $17.82-20.48 50,500 2.34 $ 19.43 50,500 $ 19.43 $20.49-33.36 126,334 6.32 $ 27.33 105,469 $ 27.19 283,686 3.58 $ 20.46 262,821 $ 19.85 The summary of the status of our unvested stock options as of December 31, 2018 and changes during the year then ended is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2017 48,581 $ 11.41 Granted — $ — Vested (26,549) $ 10.97 Canceled/Forfeited (1,167) $ 11.93 Unvested at December 31, 2018 20,865 $ 11.93 We recognized stock compensation expense from stock options vesting of $159,000, $363,000, and $506,000 for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, there was approximately $131,000 of total unamortized compensation cost related to unvested stock options. We expect to recognize such cost over a weighted-average period of 1.0 year. There were no stock option grants in 2018. |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party | Related Party In 2016, we entered into a joint venture partnership, N-G, LLC (‘N-G”), with Genis Holdings, LLC (“Genis”) to explore new technologies for wellhead compression. NGS and Genis both share 50% ownership of N-G. In 2018, we ordered some compressor packages from Genis, totaling $1.0 million. The compressors were not completed by December 31, 2018. As of December 31, 2018, we have prepaid $500,000 which is included in prepaid expenses and other in the consolidated balance sheet. The outstanding balance at year end December 31, 2018 is due at the time of completion. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 $355,000, $301,000, and $295,000 to the 401(k) Plan in 2018, 2017 and 2016, 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) 2019 $ 298 2020 118 2021 97 2022 44 2023 35 Thereafter 15 Total $ 607 Rent expense under such leases was $433,000, $310,000, and $325,000 for the years ended December 31, 2018, 2017 and 2016, 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 - Unau
Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (in thousands, except per share data) – Unaudited 2018 Q1 Q2 Q3 Q4 Total Total revenue $ 14,718 $ 18,204 $ 16,396 $ 16,160 $ 65,478 Operating income (loss) 350 226 (44) 106 638 Net income (loss) 225 247 236 (282) 426 Net income (loss) per share - Basic 0.02 0.02 0.02 (0.02) 0.03 Net income (loss) per share - Diluted 0.02 0.02 0.02 (0.02) 0.03 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. Amounts may not add due to rounding differences. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Principles of Consolidation | Organization and Principles of ConsolidationThese 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. Additionally, NGS conducts a yearly review of impairment of long-lived assets. Throughout the review, determining factors are based on estimates that can significantly impact the carrying value of these assets. 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 $291,000 and $569,000 at December 31, 2018 and 2017, respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance. |
Revenue Recognition | Revenue Recognition Policy The Company adopted ASC 606, Revenue from Contracts with Customers ("ASC 606") on January, 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied ASC 606 using the cumulative effect method. We had no significant changes in our recognition of revenue at adoption and our review of all open revenue from contracts with customers on January 1, 2018 indicated we had no adjustment to be made. Therefore, our consolidated financial statements for 2017 reported under ASC 605 are comparable to the consolidated financial statements for 2018 reported under ASC 606, since an adjustment was not needed, except for the respective additional disclosures as detailed below. Revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties (i.e. sales and property taxes). We recognize revenue once a performance obligation has been satisfied and control over a product or service has transferred to the customer. Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our condensed consolidated income statement. Nature of goods and Services The following is a description of principal activities from which the Company generates its revenue: Rental Revenue. The Company generates revenue from renting compressors and flare systems to our customers. These contracts may also include a fee for servicing the compressor or flare during the rental contract. Our rental contracts range from six to twenty-four months, with revenue being recognized over time, in equal payments over the term of the contract. After the terms of the contract have expired, a customer may renew their contract or continue renting on a monthly basis thereafter. In accordance with generally accepted accounting principles, the revenue earned from servicing rental equipment is recognized in accordance with ASC 606, while the revenue earned from the rental of the equipment is recognized in accordance with ASC 840 - Leases. Sales Revenue. The Company generates revenue by the sale of custom/fabricated compressors, flare systems and parts, as well as, exchange/rebuilding customer owned compressors and sale of used rental equipment. Custom/fabricated compressors and flare systems - The Company designs and fabricates compressors and flares based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor or flare package is complete and shipped, or in accordance with a bill and hold arrangements the customer accepts title and assumes the risk and rewards of ownership. We request some of our customers to make progressive payments as the product is being built; these payments are recorded as a contract liability on the Deferred Income line on the consolidated balance sheet until control has been transferred. These contracts also may include an assurance warranty clause to guarantee the product is free from defects in material and workmanship for a set duration of time; this is a standard industry practice and is not considered a performance obligation. 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. Per the customer’s agreement change of control is passed to the customer once the equipment is complete and ready for shipment. 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 these agreements are consistent with the credit terms on all other sales. All control is shouldered by the customer and there are no exceptions to the customer’s commitment to accept and pay for the manufactured equipment. Revenues recognized related to bill and hold arrangements for the years ended December 31, 2018 and 2017 was approximately $8.3 million and $4.6 million, respectively. Parts - Revenue is recognized after the customer obtains control of the parts. Control is passed either by the customer taking physical possession or the parts being shipped. The amount of revenue recognized is not adjusted for expected returns, as our historical part returns have been de minimis. Exchange or rebuilding customer owned compressors - Based on the contract, the Company will either exchange a new/rebuilt compressor for the customer’s malfunctioning compressor or rebuild the customer’s compressor. Revenue is recognized after control of the replacement compressor has transferred to the customer by physical delivery, delivery and installment or shipment of the compressor. Used compressors or flares - From time to time, a customer may request to purchase a used compressor or flare out of our rental fleet. Revenue from the sale of rental equipment is recognized when the control has passed to the customer, when the customer has taken physical possession or the equipment has been shipped. Service and Maintenance Revenue. The Company provides routine or call-out services on customer owned equipment. Revenue is recognized after services in the contract are rendered. Payment terms for sales revenue and service and maintenance revenue discussed above are generally 30 to 60 days although terms for specific customers can vary. Also, the transaction prices are not subject to variable consideration constraints. |
Contract Costs | Contract Costs The Company applies the practical expedient in ASC 340-40-25-4 and recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general and administrative expense on our consolidated income statement. |
Major Customers and Concentration of Credit Risk | Major Customers and Concentration of Credit RiskSales and rental income to Occidental Permian, LTD. ("Oxy") in 2018 amounted to 28% of revenue. Sales and rental income to 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. No other single customer accounted for more than 10% of our revenues in 2018, 2017 or 2016. Oxy amounted to 26% of our accounts receivable as of December 31, 2018. Oxy amounted to 14% of our accounts receivable as of December 31, 2017. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2018 and 2017. |
Inventory | InventoryInventory (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 EquipmentRental 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, 2018 and 2017, we had $11.9 million and $6.4 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, 2018, 2017 or 2016. 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 | GoodwillGoodwill 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. We performed a qualitative analysis each quarter of 2018 and our annual review was performed in the fourth quarter of 2018. |
Intangibles | Intangibles At December 31, 2018 and 2017, NGSG had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2018 and 2017 was $1.4 million and $1.5 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 six years as of December 31, 2018. Amortization expense recognized in each of the years ending December 31, 2018, 2017, and 2016 was $125,000. Estimated amortization expense for the years 2019-2024 is $125,000 per year. NGSG has an intangible asset with a gross carrying value of $654,000 at December 31, 2018 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, 2018 December 31, 2017 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,758 $ 747 $ 2,505 $ 1,633 $ 872 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,758 $ 1,401 $ 3,159 $ 1,633 $ 1,526 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, 2018 or 2017. Separately, we reviewed our indefinite life intangible for impairment with our goodwill qualitative analysis, which we performed each quarter in 2018 due to a continued decline in our rental utilization and then annually in the |
Warranty | WarrantyWe 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. We believe that the risk to our cash balance is minimal because we have chosen one of the nation’s largest most successful banks, with strong long-term ratings of Aa2/A+/AA. |
Per Share Data | Per Share DataBasic 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, 2018 or 2017. Our policy regarding income tax interest and penalties is to expense those items as other expense. |
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. |
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 2016-02, Leases (Topic 842). Under the new guidance, a lessee will be required to recognize assets and liabilities for finance 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. The ASU initially required a modified retrospective transition method where a company applies the new leases standard at the beginning of the earliest period presented in the financial statements, but in July 2018 the FASB issued ASU 2018-11. ASU 2018-11 added an optional transition method where a company applies the new leases standard at the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings. 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 adopted by the Company on January 1, 2019. We anticipate applying certain practical expedients provided by ASU 2016-02 that allow companies to not reassess leases that are in effect prior to adoption, the practical expedient in ASU 2018-11 that allows lessors to not separate lease and non-lease components for certain asset classes and the practical expedient in ASU 2018-20 that allows lessors to exclude third party taxes from lease revenue and lease-related expenses. We have reviewed and evaluated the impact the new standard will have on our accounting policies, internal controls and consolidated balance sheet. In our assessment, we determined an increase in lease assets and lease liabilities on the consolidated balance sheet will be approximately $700,000 at adoption. The adoption by the Company of Topic 842, in regards to the increase in liabilities, will not impact the debt covenants on our existing line of credit, as leases are not considered new indebtedness in our credit agreement as confirmed with our ban k. The new standard will create an adjustment to retained earnings produced by the difference in lease assets and lease liabilities brought on to the consolidated balance sheet. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table shows the Company's revenue disaggregated by product or service type for the years ended: Year Ended December 31, (in thousands) 2018 2017 2016 Compressors - sales $ 10,994 $ 13,382 $ 10,038 Flares - sales 2,535 2,755 1,183 Other (Parts/Rebuilds) - sales 2,740 4,071 2,400 Service and maintenance 1 20,537 19,857 24,016 Total revenue from contracts with customers 36,806 40,065 37,637 Add: non-ASC 606 rental revenue 28,672 27,628 34,017 Total revenue $ 65,478 $ 67,693 $ 71,654 1 Service and maintenance includes revenue from servicing our own rental equipment contracted to customers and third party equipment. |
Contract with Customer, Asset and Liability | As of December 31, 2018 and December 31, 2017, we had the following receivables and deferred income from contracts with customers: December 31, 2018 December 31, 2017 (in thousands) Accounts Receivable Accounts receivable - contracts with customers $ 4,353 $ 5,454 Accounts receivable - non-ASC 606 3,157 3,649 Total Accounts Receivable 7,510 9,103 Less: Allowance for doubtful accounts (291) (569) Total Accounts Receivable, net 7,219 8,534 Deferred income $ 81 $ 185 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: (in thousands) 2020 2021 2022 2023 2024 Total Service and Maintenance $ 2,223 $ 1,842 $ 1,763 $ 704 $ — $ 6,532 |
Schedule of Inventory | At December 31, 2018 and 2017, inventory consisted of the following (in thousands): 2018 2017 Raw materials - current $ 26,152 $ 22,813 Raw materials - long term 3,980 2,829 Finished Goods 1,022 1,022 Work in process 3,800 2,389 Total $ 34,954 $ 29,053 |
Summary of Rental Equipment and 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, 2018 , 2017 and 2015 (in thousands): 2018 2017 2016 Rentals $ 21,588 $ 20,861 $ 21,325 Sales 265 265 291 Service & Maintenance 22 21 25 Total $ 21,875 $ 21,147 $ 21,641 |
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, 2018 December 31, 2017 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,758 $ 747 $ 2,505 $ 1,633 $ 872 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,758 $ 1,401 $ 3,159 $ 1,633 $ 1,526 |
Schedule of Identified Indefinite-Lived Intangible Assets | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2018 December 31, 2017 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,758 $ 747 $ 2,505 $ 1,633 $ 872 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,758 $ 1,401 $ 3,159 $ 1,633 $ 1,526 |
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, 2018 2017 2016 Numerator: Net income $ 426 $ 19,851 $ 6,469 Denominator for basic net income per common share: Weighted average common shares outstanding 12,965 12,831 12,702 Denominator for diluted net income per share: Weighted average common shares outstanding 12,965 12,831 12,702 Dilutive effect of stock options and restricted shares 268 279 233 Diluted weighted average shares 13,233 13,110 12,935 Earnings per common share: Basic $ 0.03 $ 1.55 $ 0.51 Diluted $ 0.03 $ 1.51 $ 0.50 |
Rental Activity (Tables)
Rental Activity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rent Payments Receivable | Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2018 are as follows: Years Ending December 31, (in thousands) 2019 $ 7,245 2020 $ 3,334 2021 $ 2,763 2022 $ 2,644 2023 $ 1,058 Total $ 17,044 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following at December 31, 2018 and 2017 (in thousands): Useful Lives (Years) 2018 2017 Land — $ 1,290 $ 1,290 Building 39 6,116 6,116 Leasehold improvements 39 808 808 Office equipment and furniture 5 1,492 1,490 Software 5 573 573 Machinery and equipment 7 3,275 3,133 Vehicles 3 6,270 5,516 Construction in Progress — 8,319 — Total 28,143 18,926 Less accumulated depreciation (11,556) (11,274) Total $ 16,587 $ 7,652 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2018, 2017 and 2016, consists of the following (in thousands): 2018 2017 2016 Current provision: Federal $ (164) $ 3,074 $ 4,280 State (84) 260 429 Total current (benefit) provision (248) 3,334 4,709 Deferred provision: Federal expense (benefit) 573 (21,582) (2,713) Total deferred expense (benefit) 573 (21,582) (2,713) Total expense (benefit) provision $ 325 $ (18,248) $ 1,996 |
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, 2018 and 2017, are as follows (in thousands): 2018 2017 Deferred income tax assets: Net operating loss carryover $ 2,415 $ — Stock Compensation 746 843 Other 441 201 Total deferred income tax assets $ 3,602 $ 1,044 Deferred income tax liabilities: Property and equipment $ (34,968) (32,377) Goodwill and other intangible assets (573) (604) Other (219) (226) Total deferred income tax liabilities (35,760) (33,207) Net deferred income tax liabilities $ (32,158) $ (32,163) |
Effective Income Tax Rate Reconciliation | The effective tax rate for the years ended December 31, 2018, 2017 and 2016, differs from the statutory rate as follows: 2018 2017 2016 Statutory rate 21.0 % 34.0 % 34.0 % State and local taxes 1.5 % 1.5 % 1.6 % Uncertain tax position 72.9 % — % — % Research and development credit (48.3) % — % (7.5) % Stock based compensation (5.2) % (13.4) % 0.3 % Nondeductible compensation 4.1 % — % — % Domestic production credit — % (14.3) % (5.4) % Other (2.7) % (1.5) % 0.6 % Effective rate 43.3 % 6.3 % 23.6 % Deferred re-measurement for rate change — % (1,144.4) % — % Effective rate 43.3 % (1,138.1) % 23.6 % |
Uncertain tax positions | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): Balance at January 1, 2018 $ — Additions based on tax positions related to current year 31 Additions to tax positions of prior years 547 Balance at December 31, 2018 $ 578 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016, 2017 and 2018 and changes during the years then ended are presented below. Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 Granted 140,988 24.55 — 3,461 Vested (110,747) 23.97 — 2,806 Canceled/Forfeited — — — — Outstanding, December 31, 2018 214,630 $ 25.51 8.85 $ 3,529 |
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 year ended December 31, are as follows: 2017 Risk free rate 2.12 % Expected life 6 years Expected volatility 39.59 % Expected dividend yield — |
Summary of Option Activity | A summary of all option activity as of December 31, 2016, 2017 and 2018 and changes during the years then ended are presented below: Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 Granted — — Exercised (38,250) 17.19 216 Canceled/Forfeited (5,334) 24.02 — Outstanding, December 31, 2018 283,686 $ 20.46 3.58 $ 434 Exercisable, December 31, 2018 262,821 $ 19.85 3.22 $ 434 |
Summary of Stock Options Outstanding | The following table summarizes information about our stock options outstanding at December 31, 2018: 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 64,852 0.52 $ 9.75 64,852 $ 9.75 $15.71-17.81 42,000 1.57 $ 17.54 42,000 $ 17.54 $17.82-20.48 50,500 2.34 $ 19.43 50,500 $ 19.43 $20.49-33.36 126,334 6.32 $ 27.33 105,469 $ 27.19 283,686 3.58 $ 20.46 262,821 $ 19.85 |
Summary of the Status of Unvested Stock Options | The summary of the status of our unvested stock options as of December 31, 2018 and changes during the year then ended is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2017 48,581 $ 11.41 Granted — $ — Vested (26,549) $ 10.97 Canceled/Forfeited (1,167) $ 11.93 Unvested at December 31, 2018 20,865 $ 11.93 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | Remaining future minimum rental payments (excluding month to month) due under these leases are as follows: Years Ending December 31, (in thousands) 2019 $ 298 2020 118 2021 97 2022 44 2023 35 Thereafter 15 Total $ 607 |
Quarterly Financial Data - Un_2
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 2018 Q1 Q2 Q3 Q4 Total Total revenue $ 14,718 $ 18,204 $ 16,396 $ 16,160 $ 65,478 Operating income (loss) 350 226 (44) 106 638 Net income (loss) 225 247 236 (282) 426 Net income (loss) per share - Basic 0.02 0.02 0.02 (0.02) 0.03 Net income (loss) per share - Diluted 0.02 0.02 0.02 (0.02) 0.03 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. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
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 | $ 291,000 | $ 569,000 | $ 291,000 | $ 569,000 | ||||||||
Revenues | 16,160,000 | $ 16,396,000 | $ 18,204,000 | $ 14,718,000 | 16,660,000 | $ 15,913,000 | $ 16,218,000 | $ 18,902,000 | 65,478,000 | 67,693,000 | $ 71,654,000 | |
Impairment of goodwill | 0 | 0 | ||||||||||
Product warranty reserves | 22,000 | 65,000 | 22,000 | 65,000 | ||||||||
Uncertain tax positions | 0 | $ 0 | 0 | 0 | ||||||||
Additions to tax positions of prior years | 547,000 | 547,000 | ||||||||||
Income tax penalties and interest accrued | $ 55,000 | $ 55,000 | ||||||||||
Tax reform impact | 18,400,000 | |||||||||||
Number of business segments | segment | 1 | |||||||||||
Bill and Hold Arrangement | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Revenues | $ 8,300,000 | $ 4,600,000 | ||||||||||
Accounting Standards Update 2016-02 | Scenario, Forecast | Subsequent Event | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Operating lease, right-of-use asset | $ 700,000 | |||||||||||
Operating lease, liability | $ 700,000 | |||||||||||
Tax Year 2017 | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Additions to tax positions of prior years | 168,000 | |||||||||||
Tax Year 2016 | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Additions to tax positions of prior years | 149,000 | |||||||||||
Tax Year 2015 | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Additions to tax positions of prior years | $ 230,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 36,806 | $ 40,065 | $ 37,637 | ||||||||
Add: non-ASC 606 rental revenue | 28,672 | 27,628 | 34,017 | ||||||||
Total revenue | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | $ 16,660 | $ 15,913 | $ 16,218 | $ 18,902 | 65,478 | 67,693 | 71,654 |
Compressor - sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 10,994 | 13,382 | 10,038 | ||||||||
Flares - sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 2,535 | 2,755 | 1,183 | ||||||||
Other (Parts/Rebuilds) - sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 2,740 | 4,071 | 2,400 | ||||||||
Service and maintenance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 20,537 | $ 19,857 | $ 24,016 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Contract Balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Accounts receivable - contracts with customers | $ 4,353 | $ 5,454 |
Accounts receivable - non-ASC 606 | 3,157 | 3,649 |
Total Accounts Receivable | 7,510 | 9,103 |
Less: Allowance for doubtful accounts | (291) | (569) |
Total Accounts Receivable, net | 7,219 | 8,534 |
Deferred income | 81 | 185 |
Revenue recognized | $ 176 | $ 1,900 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Service and Maintenance | $ 6,532 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Accounting Policies [Abstract] | |
Service and Maintenance | $ 2,223 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Accounting Policies [Abstract] | |
Service and Maintenance | $ 1,842 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Accounting Policies [Abstract] | |
Service and Maintenance | $ 1,763 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Accounting Policies [Abstract] | |
Service and Maintenance | $ 704 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Accounting Policies [Abstract] | |
Service and Maintenance | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Concentration Risk) (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Oxy | Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 28.00% | 20.00% | 19.00% |
Oxy | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 26.00% | 14.00% | |
Devon | Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 21.00% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Inventory) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)compressor | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | ||
Inventory valuation reserves, deductions | $ 19 | $ 15 |
Available-for-sale or rental, compressor units | compressor | 7 | |
Raw materials -current | $ 26,152 | 22,813 |
Raw materials - long term | 3,980 | 2,829 |
Finished Goods | 1,022 | 1,022 |
Work in process | 3,800 | 2,389 |
Inventory | $ 34,954 | $ 29,053 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Property and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Work in process | $ 3,800,000 | $ 2,389,000 | |
Depreciation | 21,875,000 | 21,147,000 | $ 21,641,000 |
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 | $ 21,588,000 | 20,861,000 | 21,325,000 |
Sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 265,000 | 265,000 | 291,000 |
Service & Maintenance | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 22,000 | 21,000 | $ 25,000 |
Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Work in process | $ 11,900,000 | $ 6,400,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Intangibles) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets [Line Items] | |||
Impairment of goodwill | $ 0 | $ 0 | |
Intangibles, net of accumulated amortization | 1,401,000 | 1,526,000 | |
Amortization expense | 125,000 | 125,000 | $ 125,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2019 | 125,000 | ||
2020 | 125,000 | ||
2021 | 125,000 | ||
2022 | 125,000 | ||
2023 | 125,000 | ||
2024 | 125,000 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Value | 3,159,000 | 3,159,000 | |
Accumulated Amortization | 1,758,000 | 1,633,000 | |
Net Book Value | 1,401,000 | 1,526,000 | |
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 | ||
Intangible assets, weighted average remaining life | 6 years | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Value | $ 2,505,000 | 2,505,000 | |
Accumulated Amortization | 1,758,000 | 1,633,000 | |
Net Book Value | $ 747,000 | $ 872,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Per Share Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ (282) | $ 236 | $ 247 | $ 225 | $ 18,702 | $ 522 | $ 375 | $ 252 | $ 426 | $ 19,851 | $ 6,469 |
Denominator: | |||||||||||
Weighted average common shares outstanding, Basic (in shares) | 12,965,000 | 12,831,000 | 12,702,000 | ||||||||
Dilutive effect of stock options and restricted shares (in shares) | 268,000 | 279,000 | 233,000 | ||||||||
Weighted average common shares outstanding, Diluted (in shares) | 13,233,000 | 13,110,000 | 12,935,000 | ||||||||
Earnings per common share: | |||||||||||
Earnings per share - Basic (in dollars per share) | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 1.46 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.03 | $ 1.55 | $ 0.51 |
Earnings per share - Diluted (in dollars per share) | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 1.42 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.03 | $ 1.51 | $ 0.50 |
Stock Options | |||||||||||
Earnings per common share: | |||||||||||
Anti-dilutive securities (in shares) | 82,167 | 83,917 | 51,167 | ||||||||
Range of exercise prices, lower limit (in dollars per share) | $ 23.30 | $ 28.15 | $ 30.41 | ||||||||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 21,875 | $ 21,147 | $ 21,641 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
2019 | 7,245 | ||
2020 | 3,334 | ||
2021 | 2,763 | ||
2022 | 2,644 | ||
2023 | 1,058 | ||
Total | $ 17,044 | ||
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 | $ 20,900 | $ 20,000 | $ 20,200 |
Property and Equipment (Details
Property and Equipment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)damage | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 28,143 | $ 18,926 | |
Less accumulated depreciation | (11,556) | (11,274) | |
Property and equipment, net | 16,587 | 7,652 | |
Depreciation | 21,875 | $ 21,147 | $ 21,641 |
Number of separate damages | damage | 2 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,290 | $ 1,290 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 39 years | ||
Property and equipment, gross | $ 6,116 | 6,116 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 39 years | ||
Property and equipment, gross | $ 808 | 808 | |
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 5 years | ||
Property and equipment, gross | $ 1,492 | 1,490 | |
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 | $ 3,275 | 3,133 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives (Years) | 3 years | ||
Property and equipment, gross | $ 6,270 | 5,516 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,319 | 0 | |
Property, Plant, and Equipment, Excluding Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,100 | $ 1,200 | $ 1,400 |
Retirement of Long-Lived Asse_2
Retirement of Long-Lived Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)compressor | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)compressor | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Loss on retirement of rental equipment | $ 0 | $ 0 | $ 545 |
Rental Compressor Unit | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Estimated fair value of long-lived assets | 242 | ||
Rental Compressor Unit | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Number of units retired | compressor | 13 | ||
Number of rental compressors that are not of demanded type, configuration, make or model | compressor | 63 | ||
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 |
Deferred Compensation Plans (De
Deferred Compensation Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 1,000,000 | $ 894,000 | |
Gain on company owned life insurance | $ (154,000) | 67,000 | $ 14,000 |
Deferred compensation arrangement, deferred shares, released and issued (in shares) | 34,732 | ||
Deferred compensation arrangement, deferred shares, released and issued, value | $ 871,300 | ||
Restricted Stock | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement, deferred shares (in shares) | 101,895 | ||
Other noncurrent liabilities | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation liability, current and noncurrent | $ 1,100,000 | 866,000 | |
Other income | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Gain on company owned life insurance | $ (153,900) | $ 66,400 |
Credit Facility (Details)
Credit Facility (Details) - Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2018USD ($)loan | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 30,000,000 |
Potential increase in borrowing capacity | 20,000,000 |
Potential maximum borrowing capacity | $ 50,000,000 |
Borrowing base, component, % of eligible accounts receivable | 80.00% |
Borrowing base, component, % of eligible inventory | 50.00% |
Borrowing base, allowable share of total commitment amount attributable to inventory component | 50.00% |
Borrowing base, component, % of eligible equipment inventory | 75.00% |
Borrowing base amount available | $ 29,500,000 |
Line of credit | $ 417,000 |
Weighted average interest rate | 3.81% |
LIBOR-based Rate | |
Line of Credit Facility [Line Items] | |
Variable rate, applicable margin | 1.50% |
CB Floating Rate | |
Line of Credit Facility [Line Items] | |
Variable rate, applicable margin | 1.25% |
Maximum | |
Line of Credit Facility [Line Items] | |
Maximum leverage ratio allowed | 2.50 |
Default trigger, certain defaults of other company indebtedness, amount | $ 50,000 |
Default trigger, rendering of certain judgments, amount | $ 150,000 |
Maximum | LIBOR-based Rate | |
Line of Credit Facility [Line Items] | |
Reference rate, number of allowable LIBOR-based borrowings outstanding (in loans) | loan | 3 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision: | |||
Federal | $ (164) | $ 3,074 | $ 4,280 |
State | (84) | 260 | 429 |
Total current (benefit) provision | (248) | 3,334 | 4,709 |
Deferred provision: | |||
Federal expense (benefit) | 573 | (21,582) | (2,713) |
Total deferred expense (benefit) | 573 | (21,582) | (2,713) |
Total income tax expense (benefit) | $ 325 | $ (18,248) | $ 1,996 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | ||
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit) | $ (18,400) | |
Net operating loss carryforward | $ 10,700 | 10,700 |
Income Tax Contingency [Line Items] | ||
Additions to tax positions of prior years | 547 | 547 |
Income tax penalties and interest accrued | $ 55 | 55 |
Tax Year 2017 | ||
Income Tax Contingency [Line Items] | ||
Additions to tax positions of prior years | 168 | |
Tax Year 2016 | ||
Income Tax Contingency [Line Items] | ||
Additions to tax positions of prior years | 149 | |
Tax Year 2015 | ||
Income Tax Contingency [Line Items] | ||
Additions to tax positions of prior years | $ 230 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Net operating loss carryover | $ 2,415 | $ 0 |
Stock Compensation | 746 | 843 |
Other | 441 | 201 |
Total deferred income tax assets | 3,602 | 1,044 |
Deferred income tax liabilities: | ||
Property and equipment | (34,968) | (32,377) |
Goodwill and other intangible assets | (573) | (604) |
Other | (219) | (226) |
Total deferred income tax liabilities | (35,760) | (33,207) |
Net deferred income tax liabilities | $ (32,158) | $ (32,163) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 34.00% | 34.00% |
State and local taxes | 1.50% | 1.50% | 1.60% |
Uncertain tax position | 72.90% | 0.00% | 0.00% |
Research and development credit | (48.30%) | 0.00% | (7.50%) |
Stock based compensation | (5.20%) | (13.40%) | 0.30% |
Nondeductible compensation | 4.10% | ||
Domestic production credit | 0.00% | (14.30%) | (5.40%) |
Other | (2.70%) | (1.50%) | 0.60% |
Effective rate | 43.30% | 6.30% | 23.60% |
Deferred re-measurement for rate change | 0.00% | (1144.40%) | 0.00% |
Effective rate | 43.30% | (1138.10%) | 23.60% |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Uncertain tax positions [Roll Forward] | ||
Balance at January 1, 2018 | $ 0 | |
Additions based on tax positions related to current year | 31 | |
Additions to tax positions of prior years | $ 547 | 547 |
Balance at December 31, 2018 | $ 578 | $ 578 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - Paint and Coatings - USD ($) $ in Thousands | Jul. 30, 2008 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | $ 57 | $ 92 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 140,988 | 126,432 | 139,451 | |||
Share-based compensation expense | $ 2,226 | $ 3,675 | $ 1,793 | |||
Total unrecognized compensation expense | $ 2,620 | |||||
Unrecognized compensation cost related to stock options, weighted average period for recognition | 3 years 3 months | |||||
Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 84,700 | |||||
Award vesting period | 3 years | |||||
Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 20,000 | |||||
Vice President of Technical Services | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 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] | ||||||
Granted (in shares) | 16,288 | |||||
Award vesting period | 1 year | |||||
2009 Restricted Stock/Units Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (in shares) | 500,000 | |||||
Number of shares authorized (in shares) | 800,000 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested (in shares) | 45,533 |
Stock-Based Compensation (Res_2
Stock-Based Compensation (Restricted Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | ||||
Outstanding, Beginning Balance (in shares) | 184,389 | 139,451 | 145,588 | |
Granted (in shares) | 140,988 | 126,432 | 139,451 | |
Vested (in shares) | (110,747) | (81,494) | (145,558) | |
Canceled/Forfeited (in shares) | 0 | 0 | 0 | |
Outstanding, Ending Balance (in shares) | 214,630 | 184,389 | 139,451 | 145,588 |
Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance (in dollars per share) | $ 25.32 | $ 21.34 | $ 19.17 | |
Granted (in dollars per share) | 24.55 | 27.06 | 21.34 | |
Vested (in dollars per share) | 23.97 | 21.20 | 19.17 | |
Canceled/Forfeited (in dollars per share) | 0 | 0 | 0 | |
Outstanding, Ending Balance (in dollars per share) | $ 25.51 | $ 25.32 | $ 21.34 | $ 19.17 |
Weighted Average Remaining Contractual Life (years) | ||||
Weighted Average Remaining Contractual Life (years) | 8 years 10 months 6 days | 8 years 9 months 29 days | 9 years 1 month 17 days | 9 years 1 month 13 days |
Aggregate Intrinsic Value (in thousands) | ||||
Aggregate Intrinsic Value, Outstanding | $ 3,529 | $ 4,831 | $ 4,483 | $ 3,246 |
Aggregate Intrinsic Value, Granted | 3,461 | 3,421 | 3,007 | |
Aggregate Intrinsic Value, Vested | $ 2,806 | $ 2,361 | $ 2,963 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 1998 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | 32,750 | 0 | |||
Weighted average grant date fair value of options granted (in dollars per share) | $ 0 | $ 11.93 | ||||
Total intrinsic value of options exercised | $ 216 | $ 446 | $ 625 | |||
Proceeds from exercise of stock options | 680 | 1,120 | 1,042 | |||
Unrecognized compensation cost related to stock options | 131 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 159 | $ 363 | $ 506 | |||
Unrecognized compensation cost related to stock options, weighted average period for recognition | 1 year | |||||
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 (in shares) | 1,000,000 | 550,000 | ||||
Additional shares authorized (in shares) | 250,000 | 200,000 | ||||
Number of shares available for grant (in shares) | 318,503 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk free rate | 2.12% |
Expected life | 6 years |
Expected volatility | 39.59% |
Expected dividend yield | 0.00% |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | ||||
Outstanding, beginning of period (in shares) | 327,270 | 350,186 | 414,769 | |
Granted (in shares) | 0 | 32,750 | 0 | |
Exercised (in shares) | (38,250) | (55,666) | (62,083) | |
Canceled/Forfeited (in shares) | (5,334) | (2,500) | ||
Outstanding, end of period (in shares) | 283,686 | 327,270 | 350,186 | 414,769 |
Exercisable (in shares) | 262,821 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | $ 20.21 | $ 19.45 | $ 19.07 | |
Granted (in dollars per share) | 0 | 28.15 | 0 | |
Exercised (in dollars per share) | 17.19 | 20.12 | 16.79 | |
Canceled/Forfeited, weighted average exercise price (in dollars per share) | 24.02 | 22.90 | ||
Outstanding, end of period (in dollars per share) | 20.46 | $ 20.21 | $ 19.45 | $ 19.07 |
Exercisable (in dollars per share) | $ 19.85 | |||
Weighted Average Remaining Contractual Life (years) | ||||
Outstanding, weighted average remaining contractual life | 3 years 6 months 29 days | 4 years 3 months 10 days | 4 years 3 months | 5 years 29 days |
Exercisable, weighted average remaining contractual life | 3 years 2 months 19 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, aggregate intrinsic value | $ 434 | $ 2,255 | $ 4,453 | $ 1,814 |
Exercised, aggregate intrinsic value | 216 | $ 446 | 625 | |
Canceled/Forfeited, aggregate intrinsic value | 0 | $ 0 | ||
Exercisable, aggregate intrinsic value | $ 434 |
Stock-Based Compensation (Sto_3
Stock-Based Compensation (Stock Options by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares | shares | 283,686 |
Options outstanding, weighted average remaining contractual life | 3 years 6 months 29 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 20.46 |
Options exercisable, shares | shares | 262,821 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.85 |
$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 | 64,852 |
Options outstanding, weighted average remaining contractual life | 6 months 7 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.75 |
Options exercisable, shares | shares | 64,852 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 9.75 |
$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 | 42,000 |
Options outstanding, weighted average remaining contractual life | 1 year 6 months 25 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 17.54 |
Options exercisable, shares | shares | 42,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 17.54 |
$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 | 50,500 |
Options outstanding, weighted average remaining contractual life | 2 years 4 months 2 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.43 |
Options exercisable, shares | shares | 50,500 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.43 |
$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 | 126,334 |
Options outstanding, weighted average remaining contractual life | 6 years 3 months 25 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 27.33 |
Options exercisable, shares | shares | 105,469 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 27.19 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Unvested Stock Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Unvested, beginning of period (in shares) | 48,581 | ||
Granted (in shares) | 0 | 32,750 | 0 |
Vested (in shares) | (26,549) | ||
Canceled/Forfeited (in shares) | (1,167) | ||
Unvested, end of period (in shares) | 20,865 | 48,581 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 11.41 | ||
Granted (in dollars per share) | 0 | $ 11.93 | |
Vested (in dollars per share) | 10.97 | ||
Canceled/Forfeited (in dollars per share) | 11.93 | ||
Unvested, end of period (in dollars per share) | $ 11.93 | $ 11.41 |
Related Party (Narrative) (Deta
Related Party (Narrative) (Details) - Corporate Joint Venture - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Purchases from joint venture | $ 1,000 | |
N-G, LLC | ||
Related Party Transaction [Line Items] | ||
Percent ownership | 50.00% | |
Genis Holdings, LLC | N-G, LLC | ||
Related Party Transaction [Line Items] | ||
Percent ownership | 50.00% | |
Prepaid Purchases From Joint Venture | ||
Related Party Transaction [Line Items] | ||
Amount prepaid on purchases from joint venture | $ 500 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 355 | $ 301 | $ 295 |
Operating leases, maximum term | 5 years | ||
Operating leases, rent expense | $ 433 | $ 310 | $ 325 |
Commitments and Contingencies_3
Commitments and Contingencies (Future Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 298 |
2020 | 118 |
2021 | 97 |
2022 | 44 |
2023 | 35 |
Thereafter | 15 |
Total | $ 607 |
Quarterly Financial Data - Un_3
Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | $ 16,660 | $ 15,913 | $ 16,218 | $ 18,902 | $ 65,478 | $ 67,693 | $ 71,654 |
Operating income (loss) | 106 | (44) | 226 | 350 | 217 | 593 | 414 | 343 | 638 | 1,567 | 8,430 |
Net income (loss) | $ (282) | $ 236 | $ 247 | $ 225 | $ 18,702 | $ 522 | $ 375 | $ 252 | $ 426 | $ 19,851 | $ 6,469 |
Net income (loss) per share - Basic (in dollars per share) | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 1.46 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.03 | $ 1.55 | $ 0.51 |
Net income (loss) per share - Diluted (in dollars per share) | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 1.42 | $ 0.04 | $ 0.03 | $ 0.02 | $ 0.03 | $ 1.51 | $ 0.50 |