Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 26, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-31398 | ||
Entity Registrant Name | NATURAL GAS SERVICES GROUP, INC. | ||
Entity Incorporation, State or Country Code | CO | ||
Entity Tax Identification Number | 75-2811855 | ||
Entity Address, Address Line One | 404 Veterans Airpark Lane, Suite 300 | ||
Entity Address, City or Town | Midland | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 79705 | ||
City Area Code | (432) | ||
Local Phone Number | 262-2700 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | NGS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 216,747,630 | ||
Entity Common Stock, Shares Outstanding | 13,382,569 | ||
Documents Incorporated by Reference | Certain information called for in Items 10, 11, 12, 13 and 14 of Part III are incorporated by reference to the registrant’s definitive proxy statement for the annual meeting of shareholders expected to be held on June 25, 2020. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001084991 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 11,592 | $ 52,628 |
Trade accounts receivable, net of allowance for doubtful accounts of $918 and $291, respectively | 9,106 | 7,219 |
Inventory | 21,080 | 30,190 |
Prepaid income taxes | 40 | 3,188 |
Prepaid expenses and other | 597 | 1,696 |
Total current assets | 42,415 | 94,921 |
Long-Term Inventory, net of allowance for obsolescence of $24 and $19, respectively | 1,068 | 3,980 |
Rental equipment, net of accumulated depreciation of $162,348 and $165,459, respectively | 217,742 | 176,106 |
Property and equipment, net of accumulated depreciation of $12,847 and $11,570, respectively | 21,869 | 16,644 |
Right of use assets - operating leases, net of accumulated amortization $158 | 604 | 0 |
Goodwill | 0 | 10,039 |
Intangibles, net of accumulated amortization of $1,883 and $1,758, respectively | 1,276 | 1,401 |
Other assets | 1,603 | 1,109 |
Total assets | 286,577 | 304,200 |
Current Liabilities: | ||
Accounts payable | 1,975 | 2,122 |
Accrued liabilities | 2,287 | 8,743 |
Line of credit | 417 | 0 |
Current operating leases | 189 | 0 |
Deferred income | 640 | 81 |
Total current liabilities | 5,508 | 10,946 |
Line of credit | 0 | 417 |
Deferred income tax liability | 31,243 | 31,906 |
Long-term operating leases | 415 | 0 |
Other long-term liabilities | 1,718 | 1,699 |
Total liabilities | 38,884 | 44,968 |
Commitments and contingencies (Notes 5, 16 and 19) | ||
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; 13,178 and 13,005 shares issued, respectively | 132 | 130 |
Additional paid-in capital | 110,573 | 107,760 |
Retained earnings | 137,478 | 151,342 |
Treasury shares, at cost, 38 shares | (490) | 0 |
Total stockholders' equity | 247,693 | 259,232 |
Total liabilities and stockholders' equity | $ 286,577 | $ 304,200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Allowance for doubtful accounts | $ 918 | $ 291 |
Allowance for inventory obsolescence | 24 | 19 |
Assets, Noncurrent [Abstract] | ||
Accumulated depreciation, rental equipment | 162,348 | 165,459 |
Accumulated depreciation, property and equipment | 12,847 | 11,570 |
Accumulated amortization, operating lease right of use assets | 158 | |
Accumulated amortization, intangibles | $ 1,883 | $ 1,758 |
Stockholders’ Equity: | ||
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) | 13,178,000 | 13,005,000 |
Common stock, shares outstanding (in shares) | 13,178,000 | 13,005,000 |
Treasury shares (in shares) | 38,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Revenues | $ 78,444,000 | $ 65,478,000 | $ 67,693,000 |
Operating costs and expenses: | |||
Cost of rentals, exclusive of depreciation stated separately below | 27,583,000 | 21,860,000 | 18,160,000 |
Cost of sales, exclusive of depreciation stated separately below | 16,097,000 | 12,564,000 | 16,022,000 |
Cost of service and maintenance, exclusive of depreciation stated separately below | 630,000 | 385,000 | 370,000 |
Selling, general and administrative expenses | 10,710,000 | 9,096,000 | 10,081,000 |
Depreciation and amortization | 23,268,000 | 22,080,000 | 21,316,000 |
Impairments | 10,039,000 | 0 | 0 |
Inventory allowance | 3,758,000 | 0 | 273,000 |
Retirement of rental equipment | 1,512,000 | 0 | 0 |
Total operating costs and expenses | 93,597,000 | 65,985,000 | 66,222,000 |
Operating (loss) income | (15,153,000) | (507,000) | 1,471,000 |
Other income (expense): | |||
Interest expense | (15,000) | (69,000) | (14,000) |
Other income | 611,000 | 182,000 | 50,000 |
Total other income, net | 596,000 | 113,000 | 36,000 |
(Loss) income before income taxes: | (14,557,000) | (394,000) | 1,507,000 |
(Provision for) benefit from income taxes: | |||
Current | 31,000 | 242,000 | (3,288,000) |
Deferred | 662,000 | (314,000) | 21,575,000 |
Total income tax benefit (expense) | 693,000 | (72,000) | 18,287,000 |
Net (loss) income | $ (13,864,000) | $ (466,000) | $ 19,794,000 |
(Loss) earnings per share: | |||
Earnings (loss) per share - Basic (in dollars per share) | $ (1.06) | $ (0.04) | $ 1.54 |
Earnings (loss) per share - Diluted (in dollars per share) | $ (1.06) | $ (0.04) | $ 1.51 |
Weighted average shares outstanding: | |||
Weighted average shares outstanding, Basic (in shares) | 13,114 | 12,965 | 12,831 |
Weighted average shares outstanding, Diluted (in shares) | 13,114 | 12,965 | 13,110 |
Rental income | |||
Revenue: | |||
Revenues | $ 56,701,000 | $ 47,766,000 | $ 46,046,000 |
Sales | |||
Revenue: | |||
Revenues | 19,763,000 | 16,269,000 | 20,208,000 |
Service and maintenance income | |||
Revenue: | |||
Revenues | $ 1,980,000 | $ 1,443,000 | $ 1,439,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock |
Balance, beginning of period (in shares) at Dec. 31, 2016 | 0 | 12,764 | 0 | |||
Balance, beginning of period at Dec. 31, 2016 | $ 232,954 | $ 0 | $ 128 | $ 100,812 | $ 132,014 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options, shares (in shares) | 56 | |||||
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 | |||||
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 (loss) income | 19,794 | 19,794 | ||||
Balance, end of period (in shares) at Dec. 31, 2017 | 0 | 12,880 | 0 | |||
Balance, end of period at Dec. 31, 2017 | 257,262 | $ 0 | $ 129 | 105,325 | 151,808 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options, shares (in shares) | 38 | |||||
Exercise of common stock options | 680 | 680 | ||||
Compensation expense on common stock options | 159 | 159 | ||||
Issuance of restricted stock, shares (in shares) | 87 | |||||
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 (loss) income | (466) | (466) | ||||
Balance, end of period (in shares) at Dec. 31, 2018 | 0 | 13,005 | 0 | |||
Balance, end of period at Dec. 31, 2018 | 259,232 | $ 0 | $ 130 | 107,760 | 151,342 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options, shares (in shares) | 56 | |||||
Exercise of common stock options | 506 | $ 1 | 505 | |||
Compensation expense on common stock options | 124 | 124 | ||||
Issuance of restricted stock, shares (in shares) | 117 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 2,458 | $ 1 | 2,457 | |||
Taxes paid related to net shares settlement of equity awards | (273) | (273) | ||||
Purchase of treasury shares (in shares) | 38 | |||||
Purchase of treasury shares | (490) | $ (490) | ||||
Net (loss) income | (13,864) | (13,864) | ||||
Balance, end of period (in shares) at Dec. 31, 2019 | 0 | 13,178 | 38 | |||
Balance, end of period at Dec. 31, 2019 | $ 247,693 | $ 0 | $ 132 | $ 110,573 | $ 137,478 | $ (490) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (13,864,000) | $ (466,000) | $ 19,794,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 23,268,000 | 22,080,000 | 21,316,000 |
Deferred taxes | (662,000) | 314,000 | (21,575,000) |
Gain on disposal of assets | (55,000) | (69,000) | (87,000) |
Retirement of rental equipment | 1,512,000 | 0 | 0 |
Bad debt allowance (recovery) | 664,000 | (185,000) | 90,000 |
Inventory allowance | 3,758,000 | 0 | 273,000 |
Impairments | 10,039,000 | 0 | 0 |
Stock-based compensation | 2,582,000 | 2,385,000 | 4,038,000 |
(Gain) loss on company owned life insurance | (218,800) | 153,900 | (67,000) |
Changes in operating assets and liabilities: | |||
Trade accounts receivables | (2,550,000) | 1,500,000 | (1,246,000) |
Inventory | 8,256,000 | (5,102,000) | (5,221,000) |
Prepaid income taxes and prepaid expenses | 3,288,000 | (578,000) | (1,852,000) |
Changes in operating assets and liabilities: | |||
Accounts payable and accrued liabilities | (7,225,000) | 3,597,000 | 3,410,000 |
Deferred income | 559,000 | (104,000) | (2,040,000) |
Other | 61,000 | 163,000 | 666,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 29,412,000 | 23,689,000 | 17,499,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of rental equipment, property and other equipment | (69,938,000) | (40,065,000) | (13,536,000) |
Purchase of company owned life insurance | (302,000) | (289,000) | (620,000) |
Proceeds from insurance claim | 35,000 | 0 | 1,231,000 |
Proceeds from sale of property and equipment | 30,000 | 69,000 | 87,000 |
NET CASH USED IN INVESTING ACTIVITIES | (70,175,000) | (40,285,000) | (12,838,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds of other long-term liabilities | (16,000) | (35,000) | (23,000) |
Proceeds from exercise of stock options | 506,000 | 680,000 | 1,120,000 |
Purchase of treasury shares | (490,000) | 0 | 0 |
Taxes paid related to net share settlement of equity awards | (273,000) | (629,000) | (644,000) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (273,000) | 16,000 | 453,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (41,036,000) | (16,580,000) | 5,114,000 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 52,628,000 | 69,208,000 | 64,094,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 11,592,000 | 52,628,000 | 69,208,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid | 39,000 | 14,000 | 14,000 |
Income taxes paid | 275,000 | 85,000 | 3,725,000 |
NON-CASH TRANSACTIONS | |||
Transfer of rental equipment to inventory | 836,000 | 144,000 | 55,000 |
Transfer of inventory to rental equipment | 1,184,000 | 0 | 0 |
Transfer of prepaids to rental equipment and inventory | 958,000 | $ 0 | $ 0 |
Right of use asset acquired through an operating lease | $ 762,000 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessNatural Gas Services Group, Inc. (the "Company", “NGS”, "Natural Gas Services Group", "we" or "our") (a Colorado corporation), is a leading provider of natural gas compression equipment and services to the energy industry. The Company manufactures, fabricates, rents, sells and maintains natural gas compressors and flare systems for oil and natural gas production and plant facilities. NGS is headquartered in Midland, Texas, with fabrication facilities located in Tulsa, Oklahoma and Midland, Texas, and service facilities located in major oil and natural gas producing basins in the U.S. The Company was formed on December 17, 1998. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation 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 10. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified to conform to the current year's presentation. Use of Estimates The preparation of our consolidated financial statements in conformity with generally accepted accounting principles 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, Financial Instruments and Concentration of Credit Risks 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. 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 a large bank with strong long-term ratings of Aa2/A+. 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 perform ongoing credit evaluations of our customers and adjust credit limits based on management's assessment of the customer's financial condition and payment history, as well as industry conditions and general economic conditions. We continuously monitor collections and payments from our customers, and maintain a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. One customer accounted for 35% and 26% of our accounts receivable as of December 31, 2019 and 2018, respectively. A significant change in the liquidity or financial position of this customer could have a material adverse impact on the collectability of our accounts receivable and our future operating results. The allowance for doubtful accounts was $918,000 and $291,000 at December 31, 2019 and 2018, respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance. A summary of our allowance for doubtful accounts is as follows: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ (291) $ (569) $ (597) Accruals (664) — (90) Recoveries — 185 — Write-offs 37 93 118 Ending balance (918) (291) (569) 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. Accordingly, 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). Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our Consolidated Statements of Operations. 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, which all qualify as operating leases under ASC Topic 842, Leases (ASC 842), may also include a fee for servicing the compressor or flare during the rental contract. Our rental contracts typically range from six to 24 months, with our larger horsepower compressors having contract terms of up to 60 months. Our revenue is recognized over time, with equal monthly 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 ASC 842 – Leases, we have applied the practical expedient ASC 842-10-15-42A, which allows the Company to combine lease and non-lease components. 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 completed 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, 2019 and 2018 was approximately $11.6 million and $8.3 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 based on the terms of the contract, i.e., 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 based on the terms of the contract, i.e. 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) 2019 2018 2017 Compressors - sales $ 15,185 $ 10,994 $ 13,382 Flares - sales 959 2,535 2,755 Other (Parts/Rebuilds) - sales 3,619 2,740 4,071 Service and maintenance 1,980 1,443 1,439 Total revenue from contracts with customers 21,743 17,712 21,647 Add: ASC 842 rental revenue 56,701 47,766 46,046 Total revenue $ 78,444 $ 65,478 $ 67,693 Contract Balances As of December 31, 2019 and December 31, 2018, we had the following receivables and deferred income from contracts with customers: December 31, 2019 December 31, 2018 (in thousands) Accounts Receivable Accounts receivable - contracts with customers $ 3,061 $ 2,390 Accounts receivable - ASC 842 6,963 5,120 Total Accounts Receivable 10,024 7,510 Less: Allowance for doubtful accounts (918) (291) Total Accounts Receivable, net 9,106 7,219 Deferred income $ 640 $ 81 The Company recognized $48,000 in revenue for the year ended December 31, 2019 that was included in deferred income at the beginning of 2019. For the period ended December 31, 2018, the Company recognized revenue of $176,000 from amounts related to sales that were included in deferred income at the beginning of 2018. 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 As of December 31, 2019, the Company did not have revenue related to unsatisfied performance obligations. Contract Costs The Company 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 Statements of Operations. Leases On January 1, 2019, we adopted ASC 842 using the modified retrospective method. We recognized the cumulative effect of initially applying the new lease standard and had no adjustments to retained earnings. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. The new lease standard requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We did not reassess whether any contracts or land easements entered into prior to adoption are leases or contain leases. The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2019, for the adoption of ASC 842 was as follows (in thousands): Balance at December 31, 2018 Adjustments due to ASC 842 Balance at January 1, 2019 Balance Sheet Assets Right of use assets $ — $ 451 $ 451 Liabilities Current portion of operating leases $ — $ 126 $ 126 Long term portion of operating leases — 325 325 Total lease liabilities $ — $ 451 $ 451 The Company, as a lessee, applies the practical expedient to not separate non-lease components from lease components, therefore, accounting for each separate lease component and its associated non-lease component, as a single lease component. Each lease that 1) contains the same timing and pattern of transfer for lease and non-lease components; and 2) if the lease component, if accounted for separately, would be classified as an operating lease, the Company elects to not separate non-lease components from lease components. Major Customers and Concentration of Credit Risk Sales and rental income from Occidental Permian, LTD. ("Oxy") in 2019 and 2018 amounted to 36% and 28% of revenue, respectively. Sales and rental income to Oxy and Devon Energy Production, Inc. in 2017 amounted to 20% and 15% of revenue, respectively. No other single customer accounted for more than 10% of our revenues in 2019, 2018 or 2017. Oxy's accounts receivable balances amounted to 35% and 26% of our accounts receivable as of December 31, 2019 and 2018, respectively. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2019 and 2018. 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. We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on current and anticipated customer demand and production requirements. The Company accesses anticipated customer demand based on current and upcoming capital expenditure budgets of its major customers as well as other significant companies in the industry, along with oil and natural gas price forecasts and other factors affecting the industry. In addition, our long-term inventory consists of raw materials that remain viable but which the Company does not expect to sell within the next year. 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. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Our rental equipment has an estimated useful life between 15 and 25 years, while our property and equipment has an estimate useful lives which range from 3 to 39 years. The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue. 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 (or asset group) is being used or its condition, including a meaningful drop in fleet utilization over the prior four quarters; significant negative industry or company-specific trends or actions, including meaningful capital expenditure budget reductions by our major customers or other sizable exploration and production or midstream companies, as well as significant declines in oil and natural gas prices; legislative changes prohibiting us from leasing our units or flares; or poor general economic conditions. An impairment loss is recognized if the future undiscounted cash flows associated with the asset (or asset group) and the estimated fair value of the asset are less than the asset's carrying value. Sales of equipment out of the rental fleet are included with sales revenue and cost of sales, while retirements of units are shown a separate operating expense. Gains and losses resulting from sales and dispositions of other property and equipment are included with other income. Maintenance and repairs are charged to cost of rentals as incurred. Goodwill Goodwill represents the cost in excess of fair value of the identifiable net assets acquired. Goodwill is tested annually for impairment or as needed upon the occurrence of certain events or substantive changes in circumstances that indicate goodwill is more likely than not impaired. As further described in Note 6 of these financial statements, we fully impaired the Company's goodwill during the third quarter of 2019, resulting in a goodwill impairment charge of $10.0 million for the year ended December 31, 2019. Intangibles At December 31, 2019 and 2018, NGS had intangible assets, which relate to developed technology and a trade name. Developed technology is amortized on a straight-line basis with a useful life of 20 years, with a weighted average remaining life of approximately five years as of December 31, 2019. NGS has an intangible asset 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. Our policy is to review intangibles that are being amortized for impairment when indicators of impairment are present. In addition, it is our policy to review indefinite-lived intangible assets for impairment annually or when indicators of impairment are present. We review intangibles through an assessment of the estimated future cash flows related to such assets. In the event that assets are found to be carried at amounts in excess of estimated undiscounted future cash flows, then the assets will be adjusted for impairment to a level commensurate with a discounted cash flow analysis of the underlying assets. Warranty 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 $74,000 and $22,000 for December 31, 2019 and 2018, respectively, and is included in accrued liabilities on the consolidated balance sheet. 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. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that recovery is not probable, we establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense in the tax provision in the statement of income. 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. Our policy regarding income tax interest and penalties is to expense those items as other expense. 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. We have no uncertain tax positions as of December 31, 2019. 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, 2019 and 2018 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 January 1, 2019, the Company adopted ASC Topic 842, Leases. We applied certain practical expedients that allow companies to not reassess leases that are in effect prior to adoption, the practical expedient that allows lessors to not separate lease and non-lease components for certain asset classes and the practical expedient that allows lessors to exclude third party taxes from lease revenue and lease-related expenses. Adoption of ASC 842 resulted in an increase in lease assets and lease liabilities on the consolidated balance sheet of approximately $451,000. The adoption by the Company of ASC 842, in regards to the increase in liabilities, did 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. In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC Topic 740), which simplifies accounting for income taxes by removing certain exceptions to various tax accounting principles and clarifies other existing guidance in order to improve consistency of application. These amendments are effective for public entities for interim and annual periods beginning after December 15, 2020. We are currently evaluating the impact of ASU 2019-12 on our consolidated financial statements and note disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments to ASC Topic 326 require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including trade receivables. For companies that qualify as smaller reporting companies, the amendments in this update are effective for interim and annual periods beginning after January 1, 2023. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements and note disclosures. Revisions of Prior Period Financial Statements In conjunction with the preparation of its year-end financial statements for 2019, the Company determined that certain, immaterial operating costs and expenses were inappropriately capitalized during the years ended December 31, 2018 and 2017, as well for interim periods in 2019 and 2018. As a result, the Company revised its prior period financial statements to incorporate additional operating costs and expenses of $1.1 million, $1.14 million and $96,000 for the nine months ended September 30, 2019, the year ended December 31, 2018 and the year ended December 31, 2017, respectively. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, “Materiality”, and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”, we evaluated the aforementioned errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to our consolidated financial statements for any prior annual or interim period. Therefore, amendments of previously filed reports are not required. A summary of the revisions to our previously issued annual financial statements is included in Note 18, Revisions of Prior Period Financial Statements. In addition, a summary of the revisions to our unaudited quarterly financial data is included in Note 17, Quarterly Financial Data (Unaudited). The impacted balances in the accompanying notes to these consolidated financial statements have also been revised accordingly. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Our inventory, net of allowance for obsolescence of $24,000 and $19,000 at December 31, 2019 and 2018, respectively, consisted of the following (in thousands): 2019 2018 Raw materials - current $ 19,388 $ 26,152 Work-in-process 1,692 3,016 Finished goods — 1,022 Inventory - current 21,080 30,190 Raw materials - long term (net of allowances of $24 and $19, respectively 1,068 3,980 Inventory - total $ 22,148 $ 34,170 There were seven newly completed compressor units available for sale in finished goods for a total of $1.0 million at December 31, 2018. These units were transferred from inventory to our rental fleet due to customer demands during 2019. In addition, our long-term inventory consists of raw materials that remain viable but which the Company does not expect to sell within the next year. Inventory Allowance Given its concerns about the industry backdrop, Company management determined during the third quarter of 2019 that an increase of its inventory allowance was necessary. Due to the slow moving nature or obsolescence of a portion of its long-term inventory and inventory related to the retirement of rental equipment, management recorded an increase of $3.4 million to the Company's inventory allowance reserve for costs that may not be recoverable in the future. During the fourth quarter of 2019, management identified another $408,000 of slow moving or obsolete inventory. For the year ended December 31, 2019, inventory allowance totaled $3.8 million. We ended 2019 with an inventory allowance balance of $24,000. A summary of our inventory allowance is as follows: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ (19) $ (15) $ (15) Accruals (3,758) (4) (273) Write-offs 3,753 — 273 Ending balance (24) (19) (15) |
Rental Equipment, Property and
Rental Equipment, Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Rental Equipment, Property and Equipment | Rental Equipment, Property and Equipment Rental Equipment Our rental equipment and associated accumulated depreciation as of December 31, 2019 and 2018, respectively, consisted of the following (in thousands): 2019 2018 Compressor units $ 370,961 $ 329,697 Work-in-progress 9,129 11,868 Rental equipment 380,090 341,565 Accumulated depreciation (162,348) (165,459) Rental equipment, net of accumulated depreciation $ 217,742 $ 176,106 Our rental equipment has an estimated useful life between 15 and 25 years. Depreciation expense for rental equipment was $21.4 million, $20.9 million and $20.0 million for the year ended December 31, 2019, 2018 and 2017, respectively. In January 2019, the Company reviewed the estimated useful lives of its rental equipment. This review indicated that the actual lives of its larger horsepower rental equipment were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. These units incorporate newer technology and heavier, more robust castings and forging, which allows for complete overhauls at longer cycles when compared to its older, lower horsepower units. Accordingly, as of January 1, 2019, the Company changed its estimates of the useful lives of for these higher horsepower units from 15 years to 20 years (for its 400-600 horsepower units) or 25 years (for its 1,380 horsepower units). This analysis is consistent with our peers, which are depreciating their compressor units over 20 to 30 years. The effect of this change in estimate was to reduce 2019 depreciation expense by approximately $1.47 million, decrease 2019 net loss by $1.13 million, and decrease 2019 basic and diluted loss per share by $0.09. Retirement of Rental Equipment Given its concerns about the current industry backdrop, Company management determined during the third quarter of 2019 which units were 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. As a result of this review, we determined 327 units should be retired from our rental fleet. Accordingly, we recorded a $1.5 million loss on retirement of rental equipment during the year ended December 31, 2019. During our review of our rental compressor units in 2018, we determined 13 units should be retired from our rental fleet. We recorded no loss on this retirement, as these units were fully depreciated. We did not record any retirements from our rental fleet in 2017. Property and Equipment Property and equipment consists of the following at December 31, 2019 and 2018 (in thousands): Useful Lives (Years) 2019 2018 Land — $ 1,290 $ 1,290 Building 39 18,632 6,116 Building and leasehold improvements 39 1,168 808 Office equipment and furniture 5 2,001 1,492 Software 5 573 573 Machinery and equipment 7 3,492 3,324 Vehicles 3 7,560 6,292 Construction in Progress — — 8,319 Total 34,716 28,214 Less accumulated depreciation (12,847) (11,570) Total $ 21,869 $ 16,644 Depreciation expense for property and equipment was $1.7 million, $1.1 million and $1.2 million for the year ended December 31, 2019, 2018 and 2017, respectively. Depreciation Expense by Product Line The following table depicts annual depreciation expense associated with each product line as well as our corporate activities at December 31, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Rentals $ 22,596 $ 21,611 $ 20,873 Sales 275 271 267 Service & Maintenance 37 22 22 Corporate 235 50 29 Total $ 23,143 $ 21,954 $ 21,191 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company’s leases are primarily related to property leases for its field offices. The Company's leases have remaining lease terms of one The Company's lease agreements do not contain any contingent rental payments, material residual guarantees or material restrictive covenants. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which is based on a fully collateralized loan over the lease term, to determine the present value of lease payments. Based on the present value of lease payments for the Company's existing leases, the Company recorded net lease assets and lease liabilities of approximately $451,000, respectively, upon adoption. The Company had no finance leases. The new lease standard did not materially impact the Company's consolidated statements of income and had no impact on the Company's consolidated statements of cash flows. The impact of the new lease standard on the December 31, 2019 consolidated balance sheet was as follows: Classification on Consolidated Balance Sheet December 31, 2019 ($ in thousands) Operating lease assets Right of use assets-operating leases $ 604 Current lease liabilities Current operating leases $ 189 Noncurrent lease liabilities Long-term operating leases 415 Total lease liabilities $ 604 Weighted average remaining lease term in years 2.6 Implicit Rate 3.1 % Operating lease costs are recognized on a straight-line basis over the lease term. Total operating lease costs for the year ended December 31, 2019 was approximately $548,000. December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating lease cost (1) (2) $ 548 (1) Lease costs are classified on the Consolidated Statements of Operations in cost of sales, cost of compressors and selling, general and administrative expenses. (2) Includes costs of $350,000 for leases with terms of 12 months or less and $198,000 for leases with terms greater than 12 months. The following table shows the future maturities of lease liabilities: Years Ending December 31, Lease Liabilities (in thousands) 2020 $ 208 2021 172 2022 46 2023 38 2024 38 Thereafter 168 Total lease payments 670 Less: Imputed interest (66) Total $ 604 Under the previous lease standard (Topic 840), future minimum obligations under lease commitments in effect at December 31, 2018 were as follows: Operating Leases (in thousands) 2019 $ 298 2020 118 2021 97 2022 44 2023 35 Thereafter 15 Total $ 607 Rent expense under such leases was $198,000, $433,000, and $310,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill represents the cost in excess of fair value of the identifiable net assets acquired. Goodwill is tested annually for impairment or as needed upon the occurrence of certain events or substantive changes in circumstances that indicate goodwill is more likely than not impaired. During the third quarter of 2019, the Company examined various qualitative factors to determine if a quantitative goodwill impairment test was needed. For several months prior to the end of the third quarter of 2019, the Company experienced a significant decline in stock price, which was reflective of the significant deterioration of stock prices of companies throughout the oilfield services sector. In addition, the Company noted its largest customer as well as several other exploration and production companies had announced significant reductions to their 2020 capital expenditures budgets compared to those in 2019. These reductions clearly indicated lower demand for oilfield services, including compression services, in 2020 compared to 2019. In addition, the reductions reflected the deteriorated equity markets for energy companies and demands from institutional investors that energy companies keep capital spending within operating cash flow. After considering these factors and various other industry, economic and company-specific factors, we calculated our market capitalization (based on our closing stock price) as of September 30, 2019, and compared it to the carrying value of our net assets. Since the carrying value of our net assets exceeded our market capitalization and after considering all of the aforementioned qualitative factors, Company management determined that it was more likely than not that the fair value of the Company’s net assets was less than its carrying amount. As a result of our qualitative assessment, we proceeded to perform our quantitative goodwill impairment analysis, where we used an independent valuation specialist to assist us in determining the fair value of our net assets. In this impairment analysis, the estimated fair value of our net assets was determined utilizing market and income-based approaches. Determining fair value in this analysis required significant judgment, including judgments about appropriate comparable companies, appropriate discount rates and our estimated future cash flows, which are subject to change. As a result of our quantitative evaluation, we recorded a goodwill impairment charge of $10.0 million in 2019. Goodwill, net December 31, 2018 $ 10,039 Impairments (10,039) December 31, 2019 $ — We experienced no impairment of goodwill during the years ended December 31, 2018 and 2017. |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles At December 31, 2019 and 2018, the Company had intangible assets, which relate to developed technology and a trade name. The carrying amount net of accumulated amortization at December 31, 2019 and 2018 was $1.3 million and $1.4 million, respectively. Amortization expense recognized in each of the years ending December 31, 2019, 2018, and 2017 was $125,000. Estimated amortization expense for the years 2020-2024 is $125,000 per year. The Company has an intangible asset with a gross carrying value of $654,000 at December 31, 2019 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, 2019 December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,883 $ 622 $ 2,505 $ 1,758 $ 747 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,883 $ 1,276 $ 3,159 $ 1,758 $ 1,401 Our policy is to review intangibles that are being amortized for impairment when indicators of impairment are present. In addition, it is our policy to review indefinite-lived intangible assets for impairment annually or when indicators of impairment are present. We review intangibles 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 (excluding goodwill) during the years ended December 31, 2019 or 2018. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2019 | |
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). . 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, 2019 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, 2019, 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, 2019 our balance on the line of credit was $417,000. Our weighted average interest rate for the year ended December 31, 2019 was 3.06%. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The (provision for) benefit from income taxes for the years ended December 31, 2019, 2018 and 2017, consists of the following (in thousands): 2019 2018 2017 Current benefit (provision): Federal benefit (expense) $ 86 $ 164 $ (3,031) State (expense) benefit (55) 78 (257) Total current benefit (provision) 31 242 (3,288) Deferred benefit (provision): Federal benefit (expense) 662 (314) 21,575 Total deferred benefit (expense) 662 (314) 21,575 Total benefit (provision) $ 693 $ (72) $ 18,287 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 affected 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, 2019 and 2018, are as follows (in thousands): 2019 2018 Deferred income tax assets: Net operating loss carryover $ 1,519 $ 2,730 Stock compensation 580 746 Deferred compensation $ 389 $ 243 Other 321 197 Total deferred income tax assets $ 2,809 $ 3,916 Deferred income tax liabilities: Property and equipment $ (33,761) (35,030) Goodwill and other intangible assets (291) (573) Other — (219) Total deferred income tax liabilities (34,052) (35,822) Net deferred income tax liabilities $ (31,243) $ (31,906) The effective tax rate for the years ended December 31, 2019, 2018 and 2017, differs from the statutory rate as follows: 2019 2018 2017 Statutory rate 21.0 % 21.0 % 34.0 % State and local taxes (3.7) % 1.5 % 1.5 % Uncertain tax position — % (139.1) % — % Goodwill impairment (13.7) % — % — % Research and development credit 1.4 % 92.2 % — % Stock based compensation (0.8) % 10.0 % (14.3) % Nondeductible compensation (0.3) % (7.8) % — % Domestic production credit — % — % (15.2) % Other 0.9 % 3.9 % (1.5) % Effective rate 4.8 % (18.3) % 4.5 % Deferred re-measurement for rate change — % — % (1218.0) % Effective rate 4.8 % (18.3) % (1213.5) % 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, 2016 and 2015 was not material. As of December 31, 2019, the Company has filed amended tax returns for the years ended 2015, 2016 and 2017 and has recognized certain offsetting deductions, thus removing our uncertain tax position reserve for 2015, 2016 and 2017. 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, 2019 $ 578 Additions based on tax positions related to current year — Reductions for tax positions of prior years (578) Balance at December 31, 2019 $ — Our policy regarding income tax interest and penalties is to expense those items as incurred. During the years ended December 31, 2019, 2018 and 2017, 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 $6.7 million for federal income taxes as of December 31, 2019. This net operating loss will be carried forward indefinitely but subject to 80% limitation. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
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 $1.5 million and $1.0 million as of December 31, 2019 and 2018, respectively, with a gain related to the policy of $218,800 and a loss of $153,900 reported in other income in our consolidated income statement for the year ended December 31, 2019 and 2018, 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 $1.7 million and $1.1 million as of December 31, 2019 and 2018, 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, 2019 and 2018, respectively, we have 85,565 and 101,895 unvested restricted stock units being deferred. As of December 31, 2019 and 2018, respectively we have released and issued 89,187 and 34,732 shares to the deferred compensation plan with a value of $1.7 million and $871,300, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018, there were no issued or outstanding preferred shares. |
Rental Activity
Rental Activity | 12 Months Ended |
Dec. 31, 2019 | |
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 sixty months and continue on a month-to-month basis thereafter. Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2019 are as follows: Years Ending December 31, (in thousands) 2020 $ 25,924 2021 $ 18,489 2022 $ 16,310 2023 $ 12,507 2024 $ 9,788 Thereafter $ 2,366 Total $ 85,384 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 "2009 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. The 2009 Plan expired on June 16, 2019. At December 31, 2019 we had 123,092 shares outstanding under the 2009 Plan that will vest over the next two years. On June 20, 2019, at our annual meeting of shareholders, our shareholders approved a new proposed Equity Incentive Plan for restricted shares/units and stock options. The Equity Incentive Plan allows issuance up to 500,000 share of common stock. As to December 31, 2019, only restricted shares/units had been granted. 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 2018 performance, Mr. Taylor, was awarded 131,674 restricted shares/units on March 29, 2019, which vest over three years, in equal installments beginning March 29, 2020. On March 29, 2019, the Compensation Committee awarded 20,000 restricted shares/units to each G. Larry Lawrence, our former CFO, and James Hazlett, our Vice President of Technical Services. The restricted shares/units to Messrs. Hazlett and G.L. Lawrence vest over three years, in equal installments, beginning March 29, 2020. We also awarded and issued 23,136 shares of restricted common stock/units to our Board of Directors as partial payment for 2019 directors' fees. The restricted stock/units issued to our directors vests over one year, in quarterly installments, beginning March 31, 2020. On November 15, 2019, our former CFO, G. Larry Lawrence, retired from the Company. At time of retirement, the Board of Directors approved the accelerated vesting of all unvested shares held by Mr. Lawrence. In accordance with ASC 718, the Company considered the Board’s approval of accelerated vesting as a modification to all of the unvested shares held by Mr. Lawrence on the date of his retirement. The grant-date fair value of Mr. Lawrence’s restricted shares/units ranged from $17.29 to $24.55 per share. The closing price of the Company's stock was $11.18 on November 15, 2019, the modification date. Due to the price on date of modification being less than the original grant value, the Company recorded less compensation expense related to the accelerated vesting than would have been recognized over the vesting period if Mr. Lawrence had not retired. Total compensation expensed booked related to the Mr. Lawrence’s accelerated shares was $189,000. Compensation expense related to the restricted shares/units was approximately $2.5 million, $2.2 million and $3.7 million for the years ended December 31, 2019, 2018, and 2017, respectively. As of December 31, 2019, there was a total of approximately $3.3 million 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, 2019, 328,173 shares were still available for issuance under the Equity Incentive Plan. A summary of all restricted stock/units activity as of December 31, 2017, 2018 and 2019 and changes during the years then ended are presented below. Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 Granted 199,810 17.16 — 3,433 Vested (134,674) 24.26 — 2,807 Canceled/Forfeited — — — — Outstanding, December 31, 2019 279,766 $ 20.15 8.77 $ 3,430 Stock Option Plan Our Stock Option Plan which is stockholder approved, permits the granting of stock options to its employees for up to 1.0 million shares of common stock under the Stock Option Plan. We believe that such awards 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 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 2019 or 2018. A summary of all option activity as of December 31, 2017, 2018 and 2019 and changes during the years then ended are presented below: Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 (5,534) 24.02 — — Outstanding, December 31, 2018 283,686 $ 20.46 3.58 $ 434 Granted — — — — Exercised (56,352) 8.97 — 474 Canceled/Forfeited (8,000) 21.60 — — Expired (11,000) 17.74 — — Outstanding, December 31, 2019 208,334 $ 23.67 3.66 $ — Exercisable, December 31, 2019 197,901 $ 23.43 3.48 $ — The weighted average grant date fair value of options granted during 2017 was $11.93. We had no grants in 2019 and 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, 2019, 2018, and 2017 was approximately $474,000, $216,000, and $446,000, respectively. Cash received from stock options exercised during the years ended December 31, 2019, 2018, and 2017 was approximately $506,000, $680,000, and $1.1 million, respectively. The following table summarizes information about our stock options outstanding at December 31, 2019: 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 8,500 2.07 $ 14.89 8,500 $ 14.89 $15.71-17.81 26,000 0.74 17.40 26,000 17.40 $17.82-20.48 50,500 1.34 19.43 50,500 19.43 $20.49-33.36 123,334 5.34 27.33 112,901 27.26 208,334 3.66 $ 23.67 197,901 $ 23.43 The summary of the status of our unvested stock options as of December 31, 2019 and changes during the year then ended is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 20,865 $ 11.93 Granted — — Vested (10,432) 11.93 Canceled/Forfeited — — Unvested at December 31, 2019 10,433 $ 11.93 We recognized stock compensation expense from stock options vesting of $124,000, $159,000, and $363,000 for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, there was approximately $16,000 of total unamortized compensation cost related to unvested stock options. We expect to recognize such cost in 2020. |
(Loss) Earnings per Share
(Loss) Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings per Share | (Loss) Earnings per Share Basic (loss) earnings per common share is computed using the weighted average number of common shares outstanding during the period. Diluted (loss) earnings per common share is computed using the weighted average number of common stock and common stock equivalent shares outstanding during the period. The following table sets forth the computation of basic and diluted (loss) earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator: Net (loss) income $ (13,864) $ (466) $ 19,794 Denominator for basic net (loss) income per common share: Weighted average common shares outstanding 13,114 12,965 12,831 Denominator for diluted net (loss) income per share: Weighted average common shares outstanding 13,114 12,965 12,831 Dilutive effect of stock options and restricted shares — — 279 Diluted weighted average shares 13,114 12,965 13,110 (Loss) earnings per common share: Basic $ (1.06) $ (0.04) $ 1.54 Diluted $ (1.06) $ (0.04) $ 1.51 In the years ended ended December 31, 2019 and 2018, restricted stock and stock options were not included in the computation of diluted loss per share due to their antidilutive 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. |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2019 | |
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. We account for this investment under the equity method. In 2018, we ordered some compressor packages from Genis, totaling $1.0 million. The compressors were completed and paid in full at December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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 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, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data - Unaudited | Quarterly Financial Data (Unaudited) The following tables presents selected unaudited financial data for each of the eight quarters in the two-year period ended December 31, 2019, which have been updated to reflect the revisions discussed in Note 2 (Summary of Significant Accounting Policies). The revisions to the Company's unaudited interim financial statements during 2019 will be incorporated when it issues its Forms 10-Q for the first three quarter of 2020. The Company believes this information reflects all recurring adjustments necessary to fairly state this information when read in conjunction with the Company's financial statements and the related notes. Please note that amounts in the tables below may not sum due to rounding differences. (in thousands, except per share) 2019 Q1 Q2 Q3 Q4 Total Total revenue $ 17,991 $ 19,895 $ 20,852 $ 19,706 $ 78,444 Operating income (loss) (145) 302 (14,021) (1,289) (15,153) Net income (loss) 98 327 (12,579) (1,710) (13,864) Earnings (loss) per share, basic 0.01 0.02 (0.96) (0.13) (1.06) Earnings (loss) per share, diluted 0.01 0.02 (0.96) (0.13) (1.06) Earnings (loss) per share, year to date, basic 0.01 0.03 (0.93) (1.06) (1.06) Earnings (loss) per share, year to date, diluted 0.01 0.03 (0.93) (1.06) (1.06) 2018 Q1 Q2 Q3 Q4 Total Total revenue $ 14,718 $ 18,204 $ 16,396 $ 16,160 $ 65,478 Operating income (loss) 305 179 (500) (491) (507) Net income (loss) 190 211 (118) (749) (466) Earnings (loss) per share, basic 0.01 0.02 (0.01) (0.06) (0.04) Earnings (loss) per share, diluted 0.01 0.02 (0.01) (0.06) (0.04) Revisions to our unaudited quarterly financial data are as follows: For the Three Months Ended September 30, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 20,852 $ — $ 20,852 Operating loss (13,561) (460) (14,021) Net loss (12,232) (347) (12,579) Loss per share, basic (0.93) (0.03) (0.96) Loss per share, diluted (0.93) (0.03) (0.96) For the Three Months Ended June 30, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 19,895 $ — $ 19,895 Operating income (loss) 593 (291) 302 Net income (loss) 573 (246) 327 Earnings (loss) per share, basic 0.04 (0.02) 0.02 Earnings (loss) per share, diluted 0.04 (0.02) 0.02 For the Three Months Ended March 31, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 17,991 $ — $ 17,991 Operating income (loss) 209 (354) (145) Net income (loss) 357 (259) 98 Earnings (loss) per share, basic 0.03 (0.02) 0.01 Earnings (loss) per share, diluted 0.03 (0.02) 0.01 For the Three Months Ended December 31, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 16,160 $ — $ 16,160 Operating loss 106 (597) (491) Net loss (282) (467) (749) Loss per share, basic (0.02) (0.04) (0.06) Loss per share, diluted (0.02) (0.04) (0.06) For the Three Months Ended September 30, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 16,396 $ — $ 16,396 Operating (loss) (44) (456) (500) Net income (loss) 236 (354) (118) Earnings (loss) per share, basic 0.02 (0.03) (0.01) Earnings (loss) per share, diluted 0.02 (0.03) (0.01) For the Three Months Ended June 30, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 18,204 $ — $ 18,204 Operating income (loss) 226 (47) 179 Net income (loss) 247 (36) 211 Earnings (loss) per share, basic 0.02 — 0.02 Earnings (loss) per share, diluted 0.02 — 0.02 For the Three Months Ended March 31, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 14,718 $ — $ 14,718 Operating income (loss) 350 (45) 305 Net income (loss) 225 (35) 190 Earnings (loss) per share, basic 0.02 (0.01) 0.01 Earnings (loss) per share, diluted 0.02 (0.01) 0.01 |
Revisions of Prior Period Finan
Revisions of Prior Period Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Revisions of Prior Period Financial Statements | Revisions of Prior Period Financial Statements As discussed in Note 2 (Summary of Significant Accounting Policies), in conjunction with the preparation of its year-end financial statements for 2019, the Company determined that certain, immaterial operating costs and expenses were inappropriately capitalized during the years ended December 31, 2018 and 2017, as well for interim periods in 2019 and 2018. As a result, the Company revised its prior period financial statements to incorporate additional operating costs and expenses of $1.1 million, $1.14 million and $96,000 for the nine months ended September 30, 2019, the year ended December 31, 2018 and the year ended December 31, 2017, respectively. These revisions are summarized in the tables below. Revised Consolidated Balance Sheet As of December 31, 2018 ($ in thousands) As Reported Revisions As Revised Assets Inventory $ 30,974 $ (784) $ 30,190 Prepaid income taxes 3,148 40 3,188 Prepaid expenses and other 2,430 (734) 1,696 Total current assets 96,399 (1,478) 94,921 Rental equipment, net of accumulated depreciation 175,886 220 176,106 Property and equipment, net of accumulated depreciation 16,587 57 16,644 Total assets 305,401 (1,201) 304,200 Liabilities and Stockholders' Equity Deferred income tax liability $ 32,158 $ (252) $ 31,906 Total liabilities 45,220 (252) 44,968 Retained earnings 152,291 (949) 151,342 Total stockholders' equity 260,181 (949) 259,232 Total liabilities and stockholders' equity 305,401 (1,201) 304,200 Revised Consolidated Statements of Income For the Year Ended December 31, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 65,478 $ — $ 65,478 Operating costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 20,746 1,114 21,860 Depreciation and amortization 22,049 31 22,080 Total operating costs and expenses 64,840 1,145 65,985 Operating income (loss) 638 (1,145) (507) Income (loss) before provision for income taxes 751 (1,145) (394) Provision for income taxes: Current benefit (expense) 248 (6) 242 Deferred (expense) benefit (573) 259 (314) Income tax (expense) benefit (325) 253 (72) Net income (loss) 426 (892) (466) Earnings (loss) per share, basic 0.03 (0.07) (0.04) Earnings (loss) per share, diluted 0.03 (0.07) (0.04) For the Year Ended December 31, 2017 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 67,693 $ — $ 67,693 Operating costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 18,078 82 18,160 Depreciation and amortization 21,302 14 21,316 Total operating costs and expenses 66,126 96 66,222 Operating income (loss) 1,567 (96) 1,471 Income (loss) before provision for income taxes 1,603 (96) 1,507 Provision for income taxes: Current (expense) benefit (3,334) 46 (3,288) Deferred benefit (expense) 21,582 (7) 21,575 Income tax benefit 18,248 39 18,287 Net income (loss) 19,851 (57) 19,794 Earnings (loss) per share, basic 1.55 (0.01) 1.54 Earnings (loss) per share, diluted 1.51 — 1.51 Revised Consolidated Statements of Stockholders' Equity For the Year Ended December 31, 2018 ($ in thousands) As Reported Revisions As Revised Net income (loss) $ 426 $ (892) $ (466) Retained earnings 152,291 (949) 151,342 Total stockholders' equity 260,181 (949) 259,232 For the Year Ended December 31, 2017 ($ in thousands) As Reported Revisions As Revised Net income (loss) $ 19,851 $ (57) $ 19,794 Retained earnings 151,865 (57) 151,808 Total stockholders' equity 257,319 (57) 257,262 Revised Consolidated Statements of Cash Flows For the Year Ended December 31, 2018 ($ in thousands) As Reported Revisions As Revised Cash flows from operating activities: Net income (loss) $ 426 $ (892) $ (466) Depreciation and amortization 22,049 31 22,080 Deferred taxes 573 (259) 314 Inventory (increase) decrease (5,757) 655 (5,102) Prepaid income taxes and prepaid expenses (increase) decrease (1,318) 740 (578) Net cash provided by operating activities 23,414 275 23,689 Cash flows from investing activities: Purchase of rental equipment, property and other equipment (39,790) (275) (40,065) Net cash used in investing activities (40,010) (275) (40,285) Net change in cash and cash equivalents (16,580) — (16,580) For the Year Ended December 31, 2017 ($ in thousands) As Reported Revisions As Revised Cash flows from operating activities: Net income (loss) $ 19,851 $ (57) $ 19,794 Depreciation and amortization 21,302 14 21,316 Deferred taxes (21,582) 7 (21,575) Inventory (increase) decrease (5,350) 129 (5,221) Prepaid income taxes and prepaid expenses increase (1,806) (46) (1,852) Net cash provided by operating activities 17,452 47 17,499 Cash flows from investing activities: Purchase of rental equipment, property and other equipment (13,489) (47) (13,536) Net cash used in investing activities (12,791) (47) (12,838) Net change in cash and cash equivalents 5,114 — 5,114 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus known as COVID-19 due to the risks it imposes on the international community as the virus spreads globally. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. During this time, the market began to experience a decline in oil prices in response to oil demand concerns due to the global economic impacts of COVID-19. In addition, recent events concerning OPEC and Russia resulted in Saudi Arabia significantly discounting the price of its crude oil, as well as Saudi Arabia and Russia significantly increasing their oil supply. These actions have led to significant weakness in oil prices and ensuing reductions of exploration and production company capital and operating budgets. The full impact of the COVID-19 outbreak continues to evolve daily as of the date of this report. With the significant decline in oil prices as well as the general economic decline caused by the impacts of COVID-19, we expect utilization to decline among our smaller horsepower and medium horsepower units during the remainder of 2020 after a minimal decline during the first quarter of 2020. In terms of sales, we expect minimal compressor sales for the year due to much lower capital expenditure budgets throughout the industry, including those of our major customers. Finally, we have recently experienced and expect to continue to experience pricing pressure from our customers and competitors until industry and economic conditions improve. We are currently experiencing no issues with potential workforce and supply chain disruptions. Our relationship with our major customer continues to be strong, and they have continued to pay our invoices in a timely, consistent manner. Nevertheless, if any of these circumstances change, our business could be adversely affected. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe 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 10. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year's presentation. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with generally accepted accounting principles 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, Financial Instruments and Concentration of Credit Risks | Cash Equivalents, Financial Instruments and Concentration of Credit Risks 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. 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 a large bank with strong long-term ratings of Aa2/A+. |
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 perform ongoing credit evaluations of our customers and adjust credit limits based on management's assessment of the customer's financial condition and payment history, as well as industry conditions and general economic conditions. We continuously monitor collections and payments from our customers, and maintain a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. One customer accounted for 35% and 26% of our accounts receivable as of December 31, 2019 and 2018, respectively. A significant change in the liquidity or financial position of this customer could have a material adverse impact on the collectability of our accounts receivable and our future operating results. The allowance for doubtful accounts was $918,000 and $291,000 at December 31, 2019 and 2018, respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance. A summary of our allowance for doubtful accounts is as follows: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ (291) $ (569) $ (597) Accruals (664) — (90) Recoveries — 185 — Write-offs 37 93 118 Ending balance (918) (291) (569) |
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. Accordingly, 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). Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our Consolidated Statements of Operations. 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, which all qualify as operating leases under ASC Topic 842, Leases (ASC 842), may also include a fee for servicing the compressor or flare during the rental contract. Our rental contracts typically range from six to 24 months, with our larger horsepower compressors having contract terms of up to 60 months. Our revenue is recognized over time, with equal monthly 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 ASC 842 – Leases, we have applied the practical expedient ASC 842-10-15-42A, which allows the Company to combine lease and non-lease components. 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 completed 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, 2019 and 2018 was approximately $11.6 million and $8.3 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 based on the terms of the contract, i.e., 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 based on the terms of the contract, i.e. 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 The Company 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 Statements of Operations. |
Leases | Leases On January 1, 2019, we adopted ASC 842 using the modified retrospective method. We recognized the cumulative effect of initially applying the new lease standard and had no adjustments to retained earnings. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. The new lease standard requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We elected the practical expedients permitted under the transition guidance of the new standard that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We did not reassess whether any contracts or land easements entered into prior to adoption are leases or contain leases. The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2019, for the adoption of ASC 842 was as follows (in thousands): Balance at December 31, 2018 Adjustments due to ASC 842 Balance at January 1, 2019 Balance Sheet Assets Right of use assets $ — $ 451 $ 451 Liabilities Current portion of operating leases $ — $ 126 $ 126 Long term portion of operating leases — 325 325 Total lease liabilities $ — $ 451 $ 451 The Company, as a lessee, applies the practical expedient to not separate non-lease components from lease components, therefore, accounting for each separate lease component and its associated non-lease component, as a single lease component. |
Major Customers and Concentration of Credit Risk | Major Customers and Concentration of Credit RiskSales and rental income from Occidental Permian, LTD. ("Oxy") in 2019 and 2018 amounted to 36% and 28% of revenue, respectively. Sales and rental income to Oxy and Devon Energy Production, Inc. in 2017 amounted to 20% and 15% of revenue, respectively. No other single customer accounted for more than 10% of our revenues in 2019, 2018 or 2017. Oxy's accounts receivable balances amounted to 35% and 26% of our accounts receivable as of December 31, 2019 and 2018, respectively. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2019 and 2018. |
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. We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on current and anticipated customer demand and production requirements. The Company accesses anticipated customer demand based on current and upcoming capital expenditure budgets of its major customers as well as other significant companies in the industry, along with oil and natural gas price forecasts and other factors affecting the industry. In addition, our long-term inventory consists of raw materials that remain viable but which the Company does not expect to sell within the next year. |
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. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Our rental equipment has an estimated useful life between 15 and 25 years, while our property and equipment has an estimate useful lives which range from 3 to 39 years. The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue. |
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 (or asset group) is being used or its condition, including a meaningful drop in fleet utilization over the prior four quarters; significant negative industry or company-specific trends or actions, including meaningful capital expenditure budget reductions by our major customers or other sizable exploration and production or midstream companies, as well as significant declines in oil and natural gas prices; legislative changes prohibiting us from leasing our units or flares; or poor general economic conditions. An impairment loss is recognized if the future undiscounted cash flows associated with the asset (or asset group) and the estimated fair value of the asset are less than the asset's carrying value. Sales of equipment out of the rental fleet are included with sales revenue and cost of sales, while retirements of units are shown a separate operating expense. Gains and losses resulting from sales and dispositions of other property and equipment are included with other income. Maintenance and repairs are charged to cost of rentals as incurred. |
Goodwill | GoodwillGoodwill represents the cost in excess of fair value of the identifiable net assets acquired. Goodwill is tested annually for impairment or as needed upon the occurrence of certain events or substantive changes in circumstances that indicate goodwill is more likely than not impaired. As further described in Note 6 of these financial statements, we fully impaired the Company's goodwill during the third quarter of 2019, resulting in a goodwill impairment charge of $10.0 million for the year ended December 31, 2019. |
Intangibles | Intangibles At December 31, 2019 and 2018, NGS had intangible assets, which relate to developed technology and a trade name. Developed technology is amortized on a straight-line basis with a useful life of 20 years, with a weighted average remaining life of approximately five years as of December 31, 2019. NGS has an intangible asset 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. |
Warranty | WarrantyWe accrue amounts for estimated warranty claims based upon current and historical product warranty costs and any other related information known. |
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. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that recovery is not probable, we establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense in the tax provision in the statement of income. 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. 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 January 1, 2019, the Company adopted ASC Topic 842, Leases. We applied certain practical expedients that allow companies to not reassess leases that are in effect prior to adoption, the practical expedient that allows lessors to not separate lease and non-lease components for certain asset classes and the practical expedient that allows lessors to exclude third party taxes from lease revenue and lease-related expenses. Adoption of ASC 842 resulted in an increase in lease assets and lease liabilities on the consolidated balance sheet of approximately $451,000. The adoption by the Company of ASC 842, in regards to the increase in liabilities, did not impact the debt covenants on our existing line of credit, as leases are not considered new indebtedness in our credit agreement as confirmed with our ban k. In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC Topic 740), which simplifies accounting for income taxes by removing certain exceptions to various tax accounting principles and clarifies other existing guidance in order to improve consistency of application. These amendments are effective for public entities for interim and annual periods beginning after December 15, 2020. We are currently evaluating the impact of ASU 2019-12 on our consolidated financial statements and note disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | A summary of our allowance for doubtful accounts is as follows: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ (291) $ (569) $ (597) Accruals (664) — (90) Recoveries — 185 — Write-offs 37 93 118 Ending balance (918) (291) (569) |
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) 2019 2018 2017 Compressors - sales $ 15,185 $ 10,994 $ 13,382 Flares - sales 959 2,535 2,755 Other (Parts/Rebuilds) - sales 3,619 2,740 4,071 Service and maintenance 1,980 1,443 1,439 Total revenue from contracts with customers 21,743 17,712 21,647 Add: ASC 842 rental revenue 56,701 47,766 46,046 Total revenue $ 78,444 $ 65,478 $ 67,693 |
Contract with Customer, Asset and Liability | As of December 31, 2019 and December 31, 2018, we had the following receivables and deferred income from contracts with customers: December 31, 2019 December 31, 2018 (in thousands) Accounts Receivable Accounts receivable - contracts with customers $ 3,061 $ 2,390 Accounts receivable - ASC 842 6,963 5,120 Total Accounts Receivable 10,024 7,510 Less: Allowance for doubtful accounts (918) (291) Total Accounts Receivable, net 9,106 7,219 Deferred income $ 640 $ 81 |
Cumulative Effect of Changes from Adoption of ASU | The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2019, for the adoption of ASC 842 was as follows (in thousands): Balance at December 31, 2018 Adjustments due to ASC 842 Balance at January 1, 2019 Balance Sheet Assets Right of use assets $ — $ 451 $ 451 Liabilities Current portion of operating leases $ — $ 126 $ 126 Long term portion of operating leases — 325 325 Total lease liabilities $ — $ 451 $ 451 |
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, 2019 December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,883 $ 622 $ 2,505 $ 1,758 $ 747 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,883 $ 1,276 $ 3,159 $ 1,758 $ 1,401 |
Schedule of Identified Indefinite-Lived Intangible Assets | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2019 December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,883 $ 622 $ 2,505 $ 1,758 $ 747 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,883 $ 1,276 $ 3,159 $ 1,758 $ 1,401 |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator: Net (loss) income $ (13,864) $ (466) $ 19,794 Denominator for basic net (loss) income per common share: Weighted average common shares outstanding 13,114 12,965 12,831 Denominator for diluted net (loss) income per share: Weighted average common shares outstanding 13,114 12,965 12,831 Dilutive effect of stock options and restricted shares — — 279 Diluted weighted average shares 13,114 12,965 13,110 (Loss) earnings per common share: Basic $ (1.06) $ (0.04) $ 1.54 Diluted $ (1.06) $ (0.04) $ 1.51 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory and Allowance | Our inventory, net of allowance for obsolescence of $24,000 and $19,000 at December 31, 2019 and 2018, respectively, consisted of the following (in thousands): 2019 2018 Raw materials - current $ 19,388 $ 26,152 Work-in-process 1,692 3,016 Finished goods — 1,022 Inventory - current 21,080 30,190 Raw materials - long term (net of allowances of $24 and $19, respectively 1,068 3,980 Inventory - total $ 22,148 $ 34,170 A summary of our inventory allowance is as follows: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ (19) $ (15) $ (15) Accruals (3,758) (4) (273) Write-offs 3,753 — 273 Ending balance (24) (19) (15) |
Rental Equipment, Property an_2
Rental Equipment, Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Rental Equipment, Property and Equipment | Our rental equipment and associated accumulated depreciation as of December 31, 2019 and 2018, respectively, consisted of the following (in thousands): 2019 2018 Compressor units $ 370,961 $ 329,697 Work-in-progress 9,129 11,868 Rental equipment 380,090 341,565 Accumulated depreciation (162,348) (165,459) Rental equipment, net of accumulated depreciation $ 217,742 $ 176,106 Property and equipment consists of the following at December 31, 2019 and 2018 (in thousands): Useful Lives (Years) 2019 2018 Land — $ 1,290 $ 1,290 Building 39 18,632 6,116 Building and leasehold improvements 39 1,168 808 Office equipment and furniture 5 2,001 1,492 Software 5 573 573 Machinery and equipment 7 3,492 3,324 Vehicles 3 7,560 6,292 Construction in Progress — — 8,319 Total 34,716 28,214 Less accumulated depreciation (12,847) (11,570) Total $ 21,869 $ 16,644 The following table depicts annual depreciation expense associated with each product line as well as our corporate activities at December 31, 2019, 2018 and 2017 (in thousands): 2019 2018 2017 Rentals $ 22,596 $ 21,611 $ 20,873 Sales 275 271 267 Service & Maintenance 37 22 22 Corporate 235 50 29 Total $ 23,143 $ 21,954 $ 21,191 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Balance Sheet Impact | The impact of the new lease standard on the December 31, 2019 consolidated balance sheet was as follows: Classification on Consolidated Balance Sheet December 31, 2019 ($ in thousands) Operating lease assets Right of use assets-operating leases $ 604 Current lease liabilities Current operating leases $ 189 Noncurrent lease liabilities Long-term operating leases 415 Total lease liabilities $ 604 Weighted average remaining lease term in years 2.6 Implicit Rate 3.1 % |
Schedule of Cash Flow Impact | Operating lease costs are recognized on a straight-line basis over the lease term. Total operating lease costs for the year ended December 31, 2019 was approximately $548,000. December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating lease cost (1) (2) $ 548 (1) Lease costs are classified on the Consolidated Statements of Operations in cost of sales, cost of compressors and selling, general and administrative expenses. |
Schedule of Future Maturities of Lease Liabilities | The following table shows the future maturities of lease liabilities: Years Ending December 31, Lease Liabilities (in thousands) 2020 $ 208 2021 172 2022 46 2023 38 2024 38 Thereafter 168 Total lease payments 670 Less: Imputed interest (66) Total $ 604 |
Schedule of Future Minimum Obligations Under Lease Commitments | Under the previous lease standard (Topic 840), future minimum obligations under lease commitments in effect at December 31, 2018 were as follows: Operating Leases (in thousands) 2019 $ 298 2020 118 2021 97 2022 44 2023 35 Thereafter 15 Total $ 607 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | Goodwill, net December 31, 2018 $ 10,039 Impairments (10,039) December 31, 2019 $ — |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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, 2019 December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,883 $ 622 $ 2,505 $ 1,758 $ 747 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,883 $ 1,276 $ 3,159 $ 1,758 $ 1,401 |
Schedule of Identified Indefinite-Lived Intangible Assets | The following table represents the identified intangible assets by major asset class (in thousands): December 31, 2019 December 31, 2018 Useful Life (years) Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Developed Technology 20 $ 2,505 $ 1,883 $ 622 $ 2,505 $ 1,758 $ 747 Trade Name Indefinite 654 — 654 654 — 654 Total $ 3,159 $ 1,883 $ 1,276 $ 3,159 $ 1,758 $ 1,401 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The (provision for) benefit from income taxes for the years ended December 31, 2019, 2018 and 2017, consists of the following (in thousands): 2019 2018 2017 Current benefit (provision): Federal benefit (expense) $ 86 $ 164 $ (3,031) State (expense) benefit (55) 78 (257) Total current benefit (provision) 31 242 (3,288) Deferred benefit (provision): Federal benefit (expense) 662 (314) 21,575 Total deferred benefit (expense) 662 (314) 21,575 Total benefit (provision) $ 693 $ (72) $ 18,287 |
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, 2019 and 2018, are as follows (in thousands): 2019 2018 Deferred income tax assets: Net operating loss carryover $ 1,519 $ 2,730 Stock compensation 580 746 Deferred compensation $ 389 $ 243 Other 321 197 Total deferred income tax assets $ 2,809 $ 3,916 Deferred income tax liabilities: Property and equipment $ (33,761) (35,030) Goodwill and other intangible assets (291) (573) Other — (219) Total deferred income tax liabilities (34,052) (35,822) Net deferred income tax liabilities $ (31,243) $ (31,906) |
Effective Income Tax Rate Reconciliation | The effective tax rate for the years ended December 31, 2019, 2018 and 2017, differs from the statutory rate as follows: 2019 2018 2017 Statutory rate 21.0 % 21.0 % 34.0 % State and local taxes (3.7) % 1.5 % 1.5 % Uncertain tax position — % (139.1) % — % Goodwill impairment (13.7) % — % — % Research and development credit 1.4 % 92.2 % — % Stock based compensation (0.8) % 10.0 % (14.3) % Nondeductible compensation (0.3) % (7.8) % — % Domestic production credit — % — % (15.2) % Other 0.9 % 3.9 % (1.5) % Effective rate 4.8 % (18.3) % 4.5 % Deferred re-measurement for rate change — % — % (1218.0) % Effective rate 4.8 % (18.3) % (1213.5) % |
Uncertain tax positions | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): Balance at January 1, 2019 $ 578 Additions based on tax positions related to current year — Reductions for tax positions of prior years (578) Balance at December 31, 2019 $ — |
Rental Activity (Tables)
Rental Activity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 are as follows: Years Ending December 31, (in thousands) 2020 $ 25,924 2021 $ 18,489 2022 $ 16,310 2023 $ 12,507 2024 $ 9,788 Thereafter $ 2,366 Total $ 85,384 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | A summary of all restricted stock/units activity as of December 31, 2017, 2018 and 2019 and changes during the years then ended are presented below. Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 Granted 199,810 17.16 — 3,433 Vested (134,674) 24.26 — 2,807 Canceled/Forfeited — — — — Outstanding, December 31, 2019 279,766 $ 20.15 8.77 $ 3,430 |
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, 2017, 2018 and 2019 and changes during the years then ended are presented below: Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) 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 (5,534) 24.02 — — Outstanding, December 31, 2018 283,686 $ 20.46 3.58 $ 434 Granted — — — — Exercised (56,352) 8.97 — 474 Canceled/Forfeited (8,000) 21.60 — — Expired (11,000) 17.74 — — Outstanding, December 31, 2019 208,334 $ 23.67 3.66 $ — Exercisable, December 31, 2019 197,901 $ 23.43 3.48 $ — |
Summary of Stock Options Outstanding | The following table summarizes information about our stock options outstanding at December 31, 2019: 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 8,500 2.07 $ 14.89 8,500 $ 14.89 $15.71-17.81 26,000 0.74 17.40 26,000 17.40 $17.82-20.48 50,500 1.34 19.43 50,500 19.43 $20.49-33.36 123,334 5.34 27.33 112,901 27.26 208,334 3.66 $ 23.67 197,901 $ 23.43 |
Summary of the Status of Unvested Stock Options | The summary of the status of our unvested stock options as of December 31, 2019 and changes during the year then ended is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2018 20,865 $ 11.93 Granted — — Vested (10,432) 11.93 Canceled/Forfeited — — Unvested at December 31, 2019 10,433 $ 11.93 |
(Loss) Earnings per Share (Tabl
(Loss) Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator: Net (loss) income $ (13,864) $ (466) $ 19,794 Denominator for basic net (loss) income per common share: Weighted average common shares outstanding 13,114 12,965 12,831 Denominator for diluted net (loss) income per share: Weighted average common shares outstanding 13,114 12,965 12,831 Dilutive effect of stock options and restricted shares — — 279 Diluted weighted average shares 13,114 12,965 13,110 (Loss) earnings per common share: Basic $ (1.06) $ (0.04) $ 1.54 Diluted $ (1.06) $ (0.04) $ 1.51 |
Quarterly Financial Data - Un_2
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | The following tables presents selected unaudited financial data for each of the eight quarters in the two-year period ended December 31, 2019, which have been updated to reflect the revisions discussed in Note 2 (Summary of Significant Accounting Policies). The revisions to the Company's unaudited interim financial statements during 2019 will be incorporated when it issues its Forms 10-Q for the first three quarter of 2020. The Company believes this information reflects all recurring adjustments necessary to fairly state this information when read in conjunction with the Company's financial statements and the related notes. Please note that amounts in the tables below may not sum due to rounding differences. (in thousands, except per share) 2019 Q1 Q2 Q3 Q4 Total Total revenue $ 17,991 $ 19,895 $ 20,852 $ 19,706 $ 78,444 Operating income (loss) (145) 302 (14,021) (1,289) (15,153) Net income (loss) 98 327 (12,579) (1,710) (13,864) Earnings (loss) per share, basic 0.01 0.02 (0.96) (0.13) (1.06) Earnings (loss) per share, diluted 0.01 0.02 (0.96) (0.13) (1.06) Earnings (loss) per share, year to date, basic 0.01 0.03 (0.93) (1.06) (1.06) Earnings (loss) per share, year to date, diluted 0.01 0.03 (0.93) (1.06) (1.06) 2018 Q1 Q2 Q3 Q4 Total Total revenue $ 14,718 $ 18,204 $ 16,396 $ 16,160 $ 65,478 Operating income (loss) 305 179 (500) (491) (507) Net income (loss) 190 211 (118) (749) (466) Earnings (loss) per share, basic 0.01 0.02 (0.01) (0.06) (0.04) Earnings (loss) per share, diluted 0.01 0.02 (0.01) (0.06) (0.04) Revisions to our unaudited quarterly financial data are as follows: For the Three Months Ended September 30, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 20,852 $ — $ 20,852 Operating loss (13,561) (460) (14,021) Net loss (12,232) (347) (12,579) Loss per share, basic (0.93) (0.03) (0.96) Loss per share, diluted (0.93) (0.03) (0.96) For the Three Months Ended June 30, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 19,895 $ — $ 19,895 Operating income (loss) 593 (291) 302 Net income (loss) 573 (246) 327 Earnings (loss) per share, basic 0.04 (0.02) 0.02 Earnings (loss) per share, diluted 0.04 (0.02) 0.02 For the Three Months Ended March 31, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 17,991 $ — $ 17,991 Operating income (loss) 209 (354) (145) Net income (loss) 357 (259) 98 Earnings (loss) per share, basic 0.03 (0.02) 0.01 Earnings (loss) per share, diluted 0.03 (0.02) 0.01 For the Three Months Ended December 31, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 16,160 $ — $ 16,160 Operating loss 106 (597) (491) Net loss (282) (467) (749) Loss per share, basic (0.02) (0.04) (0.06) Loss per share, diluted (0.02) (0.04) (0.06) For the Three Months Ended September 30, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 16,396 $ — $ 16,396 Operating (loss) (44) (456) (500) Net income (loss) 236 (354) (118) Earnings (loss) per share, basic 0.02 (0.03) (0.01) Earnings (loss) per share, diluted 0.02 (0.03) (0.01) For the Three Months Ended June 30, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 18,204 $ — $ 18,204 Operating income (loss) 226 (47) 179 Net income (loss) 247 (36) 211 Earnings (loss) per share, basic 0.02 — 0.02 Earnings (loss) per share, diluted 0.02 — 0.02 For the Three Months Ended March 31, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 14,718 $ — $ 14,718 Operating income (loss) 350 (45) 305 Net income (loss) 225 (35) 190 Earnings (loss) per share, basic 0.02 (0.01) 0.01 Earnings (loss) per share, diluted 0.02 (0.01) 0.01 |
Revisions of Prior Period Fin_2
Revisions of Prior Period Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Revisions of Prior Period Financial Statements | These revisions are summarized in the tables below. Revised Consolidated Balance Sheet As of December 31, 2018 ($ in thousands) As Reported Revisions As Revised Assets Inventory $ 30,974 $ (784) $ 30,190 Prepaid income taxes 3,148 40 3,188 Prepaid expenses and other 2,430 (734) 1,696 Total current assets 96,399 (1,478) 94,921 Rental equipment, net of accumulated depreciation 175,886 220 176,106 Property and equipment, net of accumulated depreciation 16,587 57 16,644 Total assets 305,401 (1,201) 304,200 Liabilities and Stockholders' Equity Deferred income tax liability $ 32,158 $ (252) $ 31,906 Total liabilities 45,220 (252) 44,968 Retained earnings 152,291 (949) 151,342 Total stockholders' equity 260,181 (949) 259,232 Total liabilities and stockholders' equity 305,401 (1,201) 304,200 Revised Consolidated Statements of Income For the Year Ended December 31, 2018 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 65,478 $ — $ 65,478 Operating costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 20,746 1,114 21,860 Depreciation and amortization 22,049 31 22,080 Total operating costs and expenses 64,840 1,145 65,985 Operating income (loss) 638 (1,145) (507) Income (loss) before provision for income taxes 751 (1,145) (394) Provision for income taxes: Current benefit (expense) 248 (6) 242 Deferred (expense) benefit (573) 259 (314) Income tax (expense) benefit (325) 253 (72) Net income (loss) 426 (892) (466) Earnings (loss) per share, basic 0.03 (0.07) (0.04) Earnings (loss) per share, diluted 0.03 (0.07) (0.04) For the Year Ended December 31, 2017 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 67,693 $ — $ 67,693 Operating costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 18,078 82 18,160 Depreciation and amortization 21,302 14 21,316 Total operating costs and expenses 66,126 96 66,222 Operating income (loss) 1,567 (96) 1,471 Income (loss) before provision for income taxes 1,603 (96) 1,507 Provision for income taxes: Current (expense) benefit (3,334) 46 (3,288) Deferred benefit (expense) 21,582 (7) 21,575 Income tax benefit 18,248 39 18,287 Net income (loss) 19,851 (57) 19,794 Earnings (loss) per share, basic 1.55 (0.01) 1.54 Earnings (loss) per share, diluted 1.51 — 1.51 Revised Consolidated Statements of Stockholders' Equity For the Year Ended December 31, 2018 ($ in thousands) As Reported Revisions As Revised Net income (loss) $ 426 $ (892) $ (466) Retained earnings 152,291 (949) 151,342 Total stockholders' equity 260,181 (949) 259,232 For the Year Ended December 31, 2017 ($ in thousands) As Reported Revisions As Revised Net income (loss) $ 19,851 $ (57) $ 19,794 Retained earnings 151,865 (57) 151,808 Total stockholders' equity 257,319 (57) 257,262 Revised Consolidated Statements of Cash Flows For the Year Ended December 31, 2018 ($ in thousands) As Reported Revisions As Revised Cash flows from operating activities: Net income (loss) $ 426 $ (892) $ (466) Depreciation and amortization 22,049 31 22,080 Deferred taxes 573 (259) 314 Inventory (increase) decrease (5,757) 655 (5,102) Prepaid income taxes and prepaid expenses (increase) decrease (1,318) 740 (578) Net cash provided by operating activities 23,414 275 23,689 Cash flows from investing activities: Purchase of rental equipment, property and other equipment (39,790) (275) (40,065) Net cash used in investing activities (40,010) (275) (40,285) Net change in cash and cash equivalents (16,580) — (16,580) For the Year Ended December 31, 2017 ($ in thousands) As Reported Revisions As Revised Cash flows from operating activities: Net income (loss) $ 19,851 $ (57) $ 19,794 Depreciation and amortization 21,302 14 21,316 Deferred taxes (21,582) 7 (21,575) Inventory (increase) decrease (5,350) 129 (5,221) Prepaid income taxes and prepaid expenses increase (1,806) (46) (1,852) Net cash provided by operating activities 17,452 47 17,499 Cash flows from investing activities: Purchase of rental equipment, property and other equipment (13,489) (47) (13,536) Net cash used in investing activities (12,791) (47) (12,838) Net change in cash and cash equivalents 5,114 — 5,114 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | 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 | $ 918,000 | $ 291,000 | $ 918,000 | $ 291,000 | |||||||||
Revenues | 19,706,000 | $ 20,852,000 | $ 19,895,000 | $ 17,991,000 | 16,160,000 | $ 16,396,000 | $ 18,204,000 | $ 14,718,000 | 78,444,000 | 65,478,000 | $ 67,693,000 | ||
Revenue recognized | 48,000 | 176,000 | |||||||||||
Impairments | 10,000,000 | 10,039,000 | 0 | 0 | |||||||||
Product warranty reserves | 74,000 | 22,000 | 74,000 | 22,000 | |||||||||
Uncertain tax positions | 0 | $ 0 | |||||||||||
Number of business segments | segment | 1 | ||||||||||||
Right of use assets | 604,000 | 0 | $ 604,000 | 0 | $ 451,000 | ||||||||
Operating lease, liability | $ 604,000 | 0 | 604,000 | 0 | 451,000 | ||||||||
Operating costs and expenses | $ 93,597,000 | 65,985,000 | 66,222,000 | ||||||||||
Minimum | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Rental arrangements, original term | 6 months | ||||||||||||
Maximum | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Rental arrangements, original term | 60 months | ||||||||||||
Revisions | Revision Of Prior Period Financial Statements | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||
Operating costs and expenses | $ 1,100,000 | 1,145,000 | $ 96,000 | ||||||||||
Developed Technology | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Intangible assets, useful life | 20 years | ||||||||||||
Intangible assets, weighted average remaining life | 5 years | ||||||||||||
Bill and Hold Arrangement | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenues | $ 11,600,000 | $ 8,300,000 | |||||||||||
Accounting Standards Update 2016-02 | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Right of use assets | 451,000 | ||||||||||||
Operating lease, liability | $ 451,000 | ||||||||||||
Accounts Receivable | Customer Concentration Risk | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Concentration risk, percentage | 35.00% | 26.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ (291) | $ (569) | $ (597) |
Accruals | (664) | 0 | (90) |
Recoveries | 0 | 185 | 0 |
Write-offs | 37 | 93 | 118 |
Ending balance | $ (918) | $ (291) | $ (569) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 21,743 | $ 17,712 | $ 21,647 | ||||||||
Add: ASC 842 rental revenue | 56,701 | 47,766 | 46,046 | ||||||||
Total revenue | $ 19,706 | $ 20,852 | $ 19,895 | $ 17,991 | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | 78,444 | 65,478 | 67,693 |
Compressors - sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 15,185 | 10,994 | 13,382 | ||||||||
Flares - sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 959 | 2,535 | 2,755 | ||||||||
Other (Parts/Rebuilds) - sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 3,619 | 2,740 | 4,071 | ||||||||
Service and maintenance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 1,980 | $ 1,443 | $ 1,439 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Contract Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Accounts receivable - contracts with customers | $ 3,061 | $ 2,390 |
Accounts receivable - ASC 842 | 6,963 | 5,120 |
Total Accounts Receivable | 10,024 | 7,510 |
Less: Allowance for doubtful accounts | (918) | (291) |
Total Accounts Receivable, net | 9,106 | 7,219 |
Deferred income | $ 640 | $ 81 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Cumulative Effect of Changes from Adoption of ASU) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
ASSETS | |||
Right of use assets | $ 604 | $ 451 | $ 0 |
Liabilities [Abstract] | |||
Current operating leases | 189 | 126 | 0 |
Long-term operating leases | 415 | 325 | 0 |
Total lease liabilities | $ 604 | 451 | $ 0 |
Accounting Standards Update 2016-02 | |||
ASSETS | |||
Right of use assets | 451 | ||
Liabilities [Abstract] | |||
Current operating leases | 126 | ||
Long-term operating leases | 325 | ||
Total lease liabilities | $ 451 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Concentration Risk) (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35.00% | 26.00% | |
Oxy | Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 36.00% | 28.00% | 15.00% |
Oxy | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35.00% | 26.00% | |
Devon | Sales and Rental Income | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 15 years |
Rental Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 25 years |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)compressor | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Inventory Disclosure [Abstract] | ||||||
Allowance for inventory obsolescence | $ 24 | $ 24 | $ 19 | $ 15 | $ 15 | |
Available-for-sale or rental, compressor units | compressor | 7 | |||||
Available-for-sale or rental, finished goods | $ 1,000 | |||||
Inventory allowance | $ 408 | $ 3,400 | $ 3,758 | $ 0 | $ 273 |
Inventory (Schedule of Inventor
Inventory (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||||
Raw materials - current | $ 19,388 | $ 26,152 | ||
Work-in-process | 1,692 | 3,016 | ||
Finished goods | 0 | 1,022 | ||
Inventory - current | 21,080 | 30,190 | ||
Raw materials - long term (net of allowances of $24 and $19, respectively | 1,068 | 3,980 | ||
Inventory | 22,148 | 34,170 | ||
Allowance for inventory obsolescence | $ 24 | $ 19 | $ 15 | $ 15 |
Inventory (Schedule of Invent_2
Inventory (Schedule of Inventory Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Valuation Reserves [Roll Forward] | |||
Beginning balance | $ (19) | $ (15) | $ (15) |
Accruals | (3,758) | (4) | (273) |
Write-offs | 3,753 | 0 | 273 |
Ending balance | $ (24) | $ (19) | $ (15) |
Rental Equipment, Property an_3
Rental Equipment, Property and Equipment (Schedule of Rental Equipment, Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 34,716 | $ 28,214 | |
Less accumulated depreciation | (12,847) | (11,570) | |
Property and equipment, net | 21,869 | 16,644 | |
Depreciation | 23,143 | 21,954 | $ 21,191 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,290 | 1,290 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 39 years | ||
Property and equipment, gross | $ 18,632 | 6,116 | |
Building and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 39 years | ||
Property and equipment, gross | $ 1,168 | 808 | |
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Property and equipment, gross | $ 2,001 | 1,492 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Property and equipment, gross | $ 573 | 573 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 7 years | ||
Property and equipment, gross | $ 3,492 | 3,324 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Property and equipment, gross | $ 7,560 | 6,292 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 0 | 8,319 | |
Property, Plant, and Equipment, Excluding Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 1,700 | 1,100 | 1,200 |
Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 380,090 | 341,565 | |
Less accumulated depreciation | (162,348) | (165,459) | |
Property and equipment, net | 217,742 | 176,106 | |
Depreciation | 21,400 | 20,900 | $ 20,000 |
Rental Equipment | Compressor units | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 370,961 | 329,697 | |
Rental Equipment | Work-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 9,129 | $ 11,868 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Minimum | Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 15 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 39 years | ||
Maximum | Rental Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 25 years |
Rental Equipment, Property an_4
Rental Equipment, Property and Equipment (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)compressor$ / shares | Dec. 31, 2018USD ($)compressor | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 23,143 | $ 21,954 | $ 21,191 | ||||||||
Net income (loss) | $ (1,710) | $ (12,579) | $ 327 | $ 98 | $ (749) | $ (118) | $ 211 | $ 190 | (13,864) | (466) | 19,794 |
Retirement of rental equipment | 1,512 | 0 | 0 | ||||||||
Property, Plant, and Equipment, Excluding Rental Equipment | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 1,700 | $ 1,100 | 1,200 | ||||||||
Rental Compressor Unit | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Number of units retired | compressor | 327 | 13 | |||||||||
Rental Compressor Unit | Loss On Retirement of Rental Equipment | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Retirement of rental equipment | $ 1,500 | ||||||||||
Revisions | Revision Of Prior Period Financial Statements | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | 1,470 | ||||||||||
Net income (loss) | $ (347) | $ (246) | $ (259) | $ (467) | $ (354) | $ (36) | $ (35) | $ 1,130 | $ (892) | (57) | |
Earnings per share, basic and diluted (in dollars per share) | $ / shares | $ 0.09 | ||||||||||
Rental Equipment | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | $ 21,400 | $ 20,900 | $ 20,000 | ||||||||
Rental Equipment | Compressor Units, 1,380 Horsepower | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 25 years | ||||||||||
Minimum | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 3 years | ||||||||||
Minimum | Rental Equipment | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 15 years | ||||||||||
Minimum | Rental Equipment | Compressor Units, 400-600 Horsepower | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 15 years | ||||||||||
Minimum | Rental Equipment | Compressor Unit, Peer Horsepower | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 20 years | ||||||||||
Maximum | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 39 years | ||||||||||
Maximum | Rental Equipment | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 25 years | ||||||||||
Maximum | Rental Equipment | Compressor Units, 400-600 Horsepower | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 20 years | ||||||||||
Maximum | Rental Equipment | Compressor Unit, Peer Horsepower | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful Lives | 30 years |
Rental Equipment, Property an_5
Rental Equipment, Property and Equipment (Depreciation Expense by Product Line) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 23,143 | $ 21,954 | $ 21,191 |
Operating Segments | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 275 | ||
Corporate | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 235 | 50 | 29 |
Rentals | Operating Segments | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 22,596 | 21,611 | 20,873 |
Sales | Operating Segments | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 271 | 267 | |
Service & Maintenance | Operating Segments | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 37 | $ 22 | $ 22 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Right of use assets | $ 604 | $ 0 | $ 451 | |
Operating lease, liability | 604 | 0 | 451 | |
Lease costs | 548 | |||
Short-term lease cost | 350 | |||
Operating lease, cost | $ 198 | |||
Operating leases, rent expense | $ 433 | $ 310 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Right of use assets | 451 | |||
Operating lease, liability | $ 451 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 10 years |
Leases (Balance Sheet Impact) (
Leases (Balance Sheet Impact) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Right of use assets | $ 604 | $ 451 | $ 0 |
Current operating leases | 189 | 126 | 0 |
Long-term operating leases | 415 | 325 | 0 |
Total lease liabilities | $ 604 | $ 451 | $ 0 |
Weighted average remaining lease term in years | 2 years 7 months 6 days | ||
Implicit Rate | 3.10% |
Leases (Cash Flow Impact) (Deta
Leases (Cash Flow Impact) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 548 |
Leases (Future Maturities of Le
Leases (Future Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
2020 | $ 208 | ||
2021 | 172 | ||
2022 | 46 | ||
2023 | 38 | ||
2024 | 38 | ||
Thereafter | 168 | ||
Total lease payments | 670 | ||
Less: Imputed interest | (66) | ||
Total | $ 604 | $ 451 | $ 0 |
Leases (Future Minimum Obligati
Leases (Future Minimum Obligations Under Lease Commitments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 298 |
2020 | 118 |
2021 | 97 |
2022 | 44 |
2023 | 35 |
Thereafter | 15 |
Total | $ 607 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairments | $ 10,000,000 | $ 10,039,000 | $ 0 | $ 0 |
Goodwill (Summary of Changes in
Goodwill (Summary of Changes in Goodwill) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 10,039,000 | |||
Impairments | $ (10,000,000) | (10,039,000) | $ 0 | $ 0 |
Goodwill, ending balance | $ 0 | $ 10,039,000 |
Intangibles (Details)
Intangibles (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets [Line Items] | |||
Intangibles, net of accumulated amortization | $ 1,276,000 | $ 1,401,000 | |
Amortization expense | 125,000 | 125,000 | $ 125,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
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 | 1,883,000 | 1,758,000 | |
Net Book Value | 1,276,000 | 1,401,000 | |
Impairment of intangible assets | 0 | 0 | |
Trade Name | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
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 | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangible assets, useful life | 20 years | ||
Gross Carrying Value | $ 2,505,000 | 2,505,000 | |
Accumulated Amortization | 1,883,000 | 1,758,000 | |
Net Book Value | $ 622,000 | $ 747,000 |
Credit Facility (Details)
Credit Facility (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of credit | $ 417,000 | $ 0 |
Weighted average interest rate | 3.06% | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 30,000,000 | |
Potential increase in borrowing capacity | 20,000,000 | |
Potential maximum borrowing capacity | $ 50,000,000 | |
Borrowing base, component, % of eligible accounts receivable | 80.00% | |
Borrowing base, component, % of eligible inventory | 50.00% | |
Borrowing base, allowable share of total commitment amount attributable to inventory component | 50.00% | |
Borrowing base, component, % of eligible equipment inventory | 75.00% | |
Borrowing base amount available | $ 29,500,000 | |
Line of credit | $ 417,000 | |
Revolving Credit Facility | LIBOR-based Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate, applicable margin | 1.50% | |
Revolving Credit Facility | CB Floating Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate, applicable margin | 1.25% | |
Revolving Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Maximum leverage ratio allowed | 2.50 | |
Default trigger, certain defaults of other company indebtedness, amount | $ 50,000 | |
Default trigger, rendering of certain judgments, amount | $ 150,000 | |
Revolving Credit Facility | Maximum | LIBOR-based Rate | ||
Line of Credit Facility [Line Items] | ||
Reference rate, number of allowable LIBOR-based borrowings outstanding (in loans) | loan | 3 | |
Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Minimum commitment coverage ratio allowed | 2 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current benefit (provision): | |||
Federal benefit (expense) | $ 86 | $ 164 | $ (3,031) |
State (expense) benefit | (55) | 78 | (257) |
Total current benefit (provision) | 31 | 242 | (3,288) |
Deferred benefit (provision): | |||
Federal benefit (expense) | 662 | (314) | 21,575 |
Total deferred benefit (expense) | 662 | (314) | 21,575 |
Total income tax benefit (expense) | $ 693 | $ (72) | $ 18,287 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit) | $ (18,400) | |
Net operating loss carryforward | 6,700 | |
Income Tax Contingency [Line Items] | ||
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit) | (18,400) | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 547 | |
Income tax penalties and interest accrued | $ 55 | |
Net operating loss carryforward | 6,700 | |
Tax Year 2017 | ||
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 168 | |
Tax Year 2016 | ||
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 149 | |
Tax Year 2015 | ||
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 230 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Net operating loss carryover | $ 1,519 | $ 2,730 |
Stock compensation | 580 | 746 |
Deferred compensation | 389 | 243 |
Other | 321 | 197 |
Total deferred income tax assets | 2,809 | 3,916 |
Deferred income tax liabilities: | ||
Property and equipment | (33,761) | (35,030) |
Goodwill and other intangible assets | (291) | (573) |
Other | 0 | (219) |
Total deferred income tax liabilities | (34,052) | (35,822) |
Net deferred income tax liabilities | $ (31,243) | $ (31,906) |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 34.00% |
State and local taxes | (3.70%) | 1.50% | 1.50% |
Uncertain tax position | 0.00% | (139.10%) | 0.00% |
Goodwill impairment | (13.70%) | 0.00% | 0.00% |
Research and development credit | 1.40% | 92.20% | 0.00% |
Stock based compensation | (0.80%) | 10.00% | (14.30%) |
Nondeductible compensation | (0.30%) | (7.80%) | |
Domestic production credit | 0.00% | 0.00% | (15.20%) |
Other | 0.90% | 3.90% | (1.50%) |
Effective rate | 4.80% | (18.30%) | 4.50% |
Deferred re-measurement for rate change | 0 | 0 | (12.180) |
Effective rate | 4.80% | (18.30%) | (1213.50%) |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Uncertain tax positions [Roll Forward] | |
Balance at January 1, 2019 | $ 578 |
Additions based on tax positions related to current year | 0 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (578) |
Balance at December 31, 2019 | $ 0 |
Deferred Compensation Plans (De
Deferred Compensation Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation Related Costs [Abstract] | |||
Participant's maximum compensation deferral percentage | 90.00% | ||
Company owned life insurance | $ 1,500,000 | $ 1,000,000 | |
Gain (loss) on company owned life insurance | 218,800 | (153,900) | $ 67,000 |
Deferred compensation obligation | $ 1,700,000 | $ 1,100,000 | |
Deferred restricted stock shares (in shares) | 85,565 | 101,895 | |
Deferred compensation arrangement with individual, shares issued (in shares) | 89,187 | 34,732 | |
Deferred compensation arrangement, fair value of shares issued | $ 1,700,000 | $ 871,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 |
Rental Activity (Details)
Rental Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 23,143 | $ 21,954 | $ 21,191 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
2020 | 25,924 | ||
2021 | 18,489 | ||
2022 | 16,310 | ||
2023 | 12,507 | ||
2024 | 9,788 | ||
Thereafter | 2,366 | ||
Total | $ 85,384 | ||
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 | 60 months |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Narrative) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | Nov. 15, 2019 | Mar. 23, 2017 | Feb. 14, 2017 | Jun. 18, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 20, 2019 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares outstanding (in shares) | 279,766 | 214,630 | 184,389 | 139,451 | |||||
Granted (in shares) | 199,810 | 140,988 | 126,432 | ||||||
Granted (in dollars per share) | $ 17.16 | $ 24.55 | $ 27.06 | ||||||
Share-based compensation expense | $ 2,500 | $ 2,200 | $ 3,700 | ||||||
Total unrecognized compensation expense | $ 3,300 | ||||||||
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) | 131,674 | ||||||||
Award vesting period | 3 years | ||||||||
Chief Financial Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 20,000 | ||||||||
Granted (in dollars per share) | $ 11.18 | ||||||||
Share-based compensation expense | $ 189 | ||||||||
Chief Financial Officer | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in dollars per share) | $ 17.29 | ||||||||
Chief Financial Officer | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in dollars per share) | $ 24.55 | ||||||||
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) | 23,136 | ||||||||
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 | ||||||||
Shares outstanding (in shares) | 123,092 | ||||||||
Award vesting period | 2 years | ||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested (in shares) | 328,173 | ||||||||
Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 500,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | ||||
Outstanding, Beginning Balance (in shares) | 214,630 | 184,389 | 139,451 | |
Granted (in shares) | 199,810 | 140,988 | 126,432 | |
Vested (in shares) | (134,674) | (110,747) | (81,494) | |
Canceled/Forfeited (in shares) | 0 | 0 | 0 | |
Outstanding, Ending Balance (in shares) | 279,766 | 214,630 | 184,389 | 139,451 |
Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance (in dollars per share) | $ 25.51 | $ 25.32 | $ 21.34 | |
Granted (in dollars per share) | 17.16 | 24.55 | 27.06 | |
Vested (in dollars per share) | 24.26 | 23.97 | 21.20 | |
Canceled/Forfeited (in dollars per share) | 0 | 0 | 0 | |
Outstanding, Ending Balance (in dollars per share) | $ 20.15 | $ 25.51 | $ 25.32 | $ 21.34 |
Weighted Average Remaining Contractual Life (years) | ||||
Weighted Average Remaining Contractual Life (years) | 8 years 9 months 7 days | 8 years 10 months 6 days | 8 years 9 months 29 days | 9 years 1 month 17 days |
Aggregate Intrinsic Value (in thousands) | ||||
Aggregate Intrinsic Value, Outstanding | $ 3,430 | $ 3,529 | $ 4,831 | $ 4,483 |
Aggregate Intrinsic Value, Granted | 3,433 | 3,461 | 3,421 | |
Aggregate Intrinsic Value, Vested | $ 2,807 | $ 2,806 | $ 2,361 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 16, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 0 | 32,750 | |
Weighted average grant date fair value of options granted (in dollars per share) | $ 0 | $ 0 | $ 11.93 | |
Total intrinsic value of options exercised | $ 474 | $ 216 | $ 446 | |
Proceeds from exercise of stock options | 506 | 680 | 1,120 | |
Unrecognized compensation cost related to stock options | 16 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 124 | $ 159 | $ 363 | |
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 | |||
Number of shares available for grant (in shares) | 337,503 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payment Arrangement [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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | ||||
Outstanding, beginning of period (in shares) | 283,686 | 327,270 | 350,186 | |
Granted (in shares) | 0 | 0 | 32,750 | |
Exercised (in shares) | (56,352) | (38,250) | (55,666) | |
Canceled/Forfeited (in shares) | (8,000) | (5,534) | ||
Expired (in shares) | (11,000) | |||
Outstanding, end of period (in shares) | 208,334 | 283,686 | 327,270 | 350,186 |
Exercisable (in shares) | 197,901 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | $ 20.46 | $ 20.21 | $ 19.45 | |
Granted (in dollars per share) | 0 | 0 | 28.15 | |
Exercised (in dollars per share) | 8.97 | 17.19 | 20.12 | |
Canceled/Forfeited, weighted average exercise price (in dollars per share) | 21.60 | 24.02 | ||
Expired (in dollars per share) | 17.74 | |||
Outstanding, end of period (in dollars per share) | 23.67 | $ 20.46 | $ 20.21 | $ 19.45 |
Exercisable (in dollars per share) | $ 23.43 | |||
Weighted Average Remaining Contractual Life (years) | ||||
Outstanding, weighted average remaining contractual life | 3 years 7 months 28 days | 3 years 6 months 29 days | 4 years 3 months 10 days | 4 years 3 months |
Exercisable, weighted average remaining contractual life | 3 years 5 months 23 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, aggregate intrinsic value | $ 0 | $ 434 | $ 2,255 | $ 4,453 |
Exercised, aggregate intrinsic value | 474 | $ 216 | $ 446 | |
Exercisable, aggregate intrinsic value | $ 0 |
Stock-Based Compensation (Sto_3
Stock-Based Compensation (Stock Options by Exercise Price Range) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares (in shares) | shares | 208,334 |
Options outstanding, weighted average remaining contractual life | 3 years 7 months 28 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 23.67 |
Options exercisable, shares (in shares) | shares | 197,901 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 23.43 |
$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 (in shares) | shares | 8,500 |
Options outstanding, weighted average remaining contractual life | 2 years 25 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 14.89 |
Options exercisable, shares (in shares) | shares | 8,500 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 14.89 |
$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 (in shares) | shares | 26,000 |
Options outstanding, weighted average remaining contractual life | 8 months 26 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 17.40 |
Options exercisable, shares (in shares) | shares | 26,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 17.40 |
$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 (in shares) | shares | 50,500 |
Options outstanding, weighted average remaining contractual life | 1 year 4 months 2 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.43 |
Options exercisable, shares (in 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 (in shares) | shares | 123,334 |
Options outstanding, weighted average remaining contractual life | 5 years 4 months 2 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 27.33 |
Options exercisable, shares (in shares) | shares | 112,901 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 27.26 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Unvested Stock Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Unvested, beginning of period (in shares) | 20,865 | ||
Granted (in shares) | 0 | 0 | 32,750 |
Vested (in shares) | (10,432) | ||
Canceled/Forfeited (in shares) | 0 | ||
Unvested, end of period (in shares) | 10,433 | 20,865 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 11.93 | ||
Granted (in dollars per share) | 0 | $ 0 | $ 11.93 |
Vested (in dollars per share) | 11.93 | ||
Canceled/Forfeited (in dollars per share) | 0 | ||
Unvested, end of period (in dollars per share) | $ 11.93 | $ 11.93 |
(Loss) Earnings per Share (Basi
(Loss) Earnings per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income (Loss) Attributable to Parent [Abstract] | |||||||||||||
Net (loss) income | $ (1,710) | $ (12,579) | $ 327 | $ 98 | $ (749) | $ (118) | $ 211 | $ 190 | $ (13,864) | $ (466) | $ 19,794 | ||
Denominator for basic net income per common share: | |||||||||||||
Weighted average common shares outstanding, Basic (in shares) | 13,114,000 | 12,965,000 | 12,831,000 | ||||||||||
Denominator for diluted net income per share: | |||||||||||||
Dilutive effect of stock options and restricted shares (in shares) | 0 | 0 | 279,000 | ||||||||||
Weighted average common shares outstanding, Diluted (in shares) | 13,114,000 | 12,965,000 | 13,110,000 | ||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.13) | $ (0.96) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.01) | $ 0.02 | $ 0.01 | $ 0.03 | $ (0.93) | $ (1.06) | $ (0.04) | $ 1.54 |
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.13) | $ (0.96) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.01) | $ 0.02 | $ 0.01 | $ 0.03 | $ (0.93) | $ (1.06) | $ (0.04) | $ 1.51 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Anti-dilutive securities (in shares) | 0 | 0 | |||||||||||
Stock Options | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Anti-dilutive securities (in shares) | 83,917 | ||||||||||||
Range of exercise prices, lower limit (in dollars per share) | $ 28.15 | ||||||||||||
Range of exercise prices, upper limit (in dollars per share) | $ 33.36 |
Related Party (Narrative) (Deta
Related Party (Narrative) (Details) - Corporate Joint Venture - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Purchases from joint venture | $ 1 | |
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% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
401(k) plan, minimum eligibility age | 18 years | ||
401(k) plan, requisite service period | 2 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 | $ 393 | $ 355 | $ 301 |
Quarterly Financial Data - Un_3
Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total revenue | $ 19,706 | $ 20,852 | $ 19,895 | $ 17,991 | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | $ 78,444 | $ 65,478 | $ 67,693 | ||
Operating income (loss) | (1,289) | (14,021) | 302 | (145) | (491) | (500) | 179 | 305 | (15,153) | (507) | 1,471 | ||
Net income (loss) | $ (1,710) | $ (12,579) | $ 327 | $ 98 | $ (749) | $ (118) | $ 211 | $ 190 | $ (13,864) | $ (466) | $ 19,794 | ||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.13) | $ (0.96) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.01) | $ 0.02 | $ 0.01 | $ 0.03 | $ (0.93) | $ (1.06) | $ (0.04) | $ 1.54 |
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.13) | $ (0.96) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.01) | $ 0.02 | $ 0.01 | $ 0.03 | $ (0.93) | $ (1.06) | $ (0.04) | $ 1.51 |
As Reported | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total revenue | $ 20,852 | $ 19,895 | $ 17,991 | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | $ 65,478 | $ 67,693 | ||||
Operating income (loss) | (13,561) | 593 | 209 | 106 | (44) | 226 | 350 | 638 | 1,567 | ||||
Net income (loss) | $ (12,232) | $ 573 | $ 357 | $ (282) | $ 236 | $ 247 | $ 225 | $ 426 | $ 19,851 | ||||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.93) | $ 0.04 | $ 0.03 | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.03 | $ 1.55 | ||||
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.93) | $ 0.04 | $ 0.03 | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.03 | $ 1.51 | ||||
Revisions | Revision Of Prior Period Financial Statements | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Operating income (loss) | (460) | (291) | (354) | (597) | (456) | (47) | (45) | (1,145) | (96) | ||||
Net income (loss) | $ (347) | $ (246) | $ (259) | $ (467) | $ (354) | $ (36) | $ (35) | $ 1,130 | $ (892) | $ (57) | |||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ 0 | $ (0.01) | $ (0.07) | $ (0.01) | ||||
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ 0 | $ (0.01) | $ (0.07) | $ 0 |
Revisions of Prior Period Fin_3
Revisions of Prior Period Financial Statements (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating costs and expenses | $ 93,597 | $ 65,985 | $ 66,222 | |
Minimum | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Rental arrangements, original term | 6 months | |||
Maximum | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Rental arrangements, original term | 60 months | |||
Revisions | Revision Of Prior Period Financial Statements | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating costs and expenses | $ 1,100 | $ 1,145 | $ 96 |
Revisions of Prior Period Fin_4
Revisions of Prior Period Financial Statements (Revised Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||||
Inventory | $ 21,080 | $ 30,190 | ||
Prepaid income taxes | 40 | 3,188 | ||
Prepaid expenses and other | 597 | 1,696 | ||
Total current assets | 42,415 | 94,921 | ||
Rental equipment, net of accumulated depreciation | 217,742 | 176,106 | ||
Property and equipment, net of accumulated depreciation | 21,869 | 16,644 | ||
Total assets | 286,577 | 304,200 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Deferred income tax liability | 31,243 | 31,906 | ||
Total liabilities | 38,884 | 44,968 | ||
Stockholders’ Equity: | ||||
Retained earnings | 137,478 | 151,342 | $ 151,808 | |
Total stockholders' equity | 247,693 | 259,232 | 257,262 | $ 232,954 |
Total liabilities and stockholders' equity | $ 286,577 | 304,200 | ||
As Reported | ||||
Current Assets: | ||||
Inventory | 30,974 | |||
Prepaid income taxes | 3,148 | |||
Prepaid expenses and other | 2,430 | |||
Total current assets | 96,399 | |||
Rental equipment, net of accumulated depreciation | 175,886 | |||
Property and equipment, net of accumulated depreciation | 16,587 | |||
Total assets | 305,401 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Deferred income tax liability | 32,158 | |||
Total liabilities | 45,220 | |||
Stockholders’ Equity: | ||||
Retained earnings | 152,291 | 151,865 | ||
Total stockholders' equity | 260,181 | 257,319 | ||
Total liabilities and stockholders' equity | 305,401 | |||
Revisions | Revision Of Prior Period Financial Statements | ||||
Current Assets: | ||||
Inventory | (784) | |||
Prepaid income taxes | 40 | |||
Prepaid expenses and other | (734) | |||
Total current assets | (1,478) | |||
Rental equipment, net of accumulated depreciation | 220 | |||
Property and equipment, net of accumulated depreciation | 57 | |||
Total assets | (1,201) | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Deferred income tax liability | (252) | |||
Total liabilities | (252) | |||
Stockholders’ Equity: | ||||
Retained earnings | (949) | (57) | ||
Total stockholders' equity | (949) | $ (57) | ||
Total liabilities and stockholders' equity | $ (1,201) |
Revisions of Prior Period Fin_5
Revisions of Prior Period Financial Statements (Revised Consolidated Statements of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||||
Revenues | $ 19,706 | $ 20,852 | $ 19,895 | $ 17,991 | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | $ 78,444 | $ 65,478 | $ 67,693 | ||
Operating costs and expenses: | |||||||||||||
Cost of rentals, exclusive of depreciation stated separately below | 27,583 | 21,860 | 18,160 | ||||||||||
Depreciation and amortization | 23,268 | 22,080 | 21,316 | ||||||||||
Operating costs and expenses | 93,597 | 65,985 | 66,222 | ||||||||||
Operating income (loss) | (1,289) | (14,021) | 302 | (145) | (491) | (500) | 179 | 305 | (15,153) | (507) | 1,471 | ||
Income (loss) before provision for income taxes | (14,557) | (394) | 1,507 | ||||||||||
(Provision for) benefit from income taxes: | |||||||||||||
Current | 31 | 242 | (3,288) | ||||||||||
Deferred | 662 | (314) | 21,575 | ||||||||||
Total income tax benefit (expense) | 693 | (72) | 18,287 | ||||||||||
Net income (loss) | $ (1,710) | $ (12,579) | $ 327 | $ 98 | $ (749) | $ (118) | $ 211 | $ 190 | $ (13,864) | $ (466) | $ 19,794 | ||
Earnings Per Share [Abstract] | |||||||||||||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.13) | $ (0.96) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.01) | $ 0.02 | $ 0.01 | $ 0.03 | $ (0.93) | $ (1.06) | $ (0.04) | $ 1.54 |
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.13) | $ (0.96) | $ 0.02 | $ 0.01 | $ (0.06) | $ (0.01) | $ 0.02 | $ 0.01 | $ 0.03 | $ (0.93) | $ (1.06) | $ (0.04) | $ 1.51 |
As Reported | |||||||||||||
Revenue: | |||||||||||||
Revenues | $ 20,852 | $ 19,895 | $ 17,991 | $ 16,160 | $ 16,396 | $ 18,204 | $ 14,718 | $ 65,478 | $ 67,693 | ||||
Operating costs and expenses: | |||||||||||||
Cost of rentals, exclusive of depreciation stated separately below | 20,746 | 18,078 | |||||||||||
Depreciation and amortization | 22,049 | 21,302 | |||||||||||
Operating costs and expenses | 64,840 | 66,126 | |||||||||||
Operating income (loss) | (13,561) | 593 | 209 | 106 | (44) | 226 | 350 | 638 | 1,567 | ||||
Income (loss) before provision for income taxes | 751 | 1,603 | |||||||||||
(Provision for) benefit from income taxes: | |||||||||||||
Current | 248 | (3,334) | |||||||||||
Deferred | (573) | 21,582 | |||||||||||
Total income tax benefit (expense) | (325) | 18,248 | |||||||||||
Net income (loss) | $ (12,232) | $ 573 | $ 357 | $ (282) | $ 236 | $ 247 | $ 225 | $ 426 | $ 19,851 | ||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.93) | $ 0.04 | $ 0.03 | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.03 | $ 1.55 | ||||
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.93) | $ 0.04 | $ 0.03 | $ (0.02) | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.03 | $ 1.51 | ||||
Revisions | Revision Of Prior Period Financial Statements | |||||||||||||
Revenue: | |||||||||||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Operating costs and expenses: | |||||||||||||
Cost of rentals, exclusive of depreciation stated separately below | 1,114 | 82 | |||||||||||
Depreciation and amortization | 31 | 14 | |||||||||||
Operating costs and expenses | $ 1,100 | 1,145 | 96 | ||||||||||
Operating income (loss) | (460) | (291) | (354) | (597) | (456) | (47) | (45) | (1,145) | (96) | ||||
Income (loss) before provision for income taxes | (1,145) | (96) | |||||||||||
(Provision for) benefit from income taxes: | |||||||||||||
Current | (6) | 46 | |||||||||||
Deferred | 259 | (7) | |||||||||||
Total income tax benefit (expense) | 253 | 39 | |||||||||||
Net income (loss) | $ (347) | $ (246) | $ (259) | $ (467) | $ (354) | $ (36) | $ (35) | $ 1,130 | $ (892) | $ (57) | |||
Earnings Per Share [Abstract] | |||||||||||||
Earnings (loss) per share - Basic (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ 0 | $ (0.01) | $ (0.07) | $ (0.01) | ||||
Earnings (loss) per share - Diluted (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ 0 | $ (0.01) | $ (0.07) | $ 0 |
Revisions of Prior Period Fin_6
Revisions of Prior Period Financial Statements (Revised Consolidated Statements of Stockholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income (loss) | $ (1,710) | $ (12,579) | $ 327 | $ 98 | $ (749) | $ (118) | $ 211 | $ 190 | $ (13,864) | $ (466) | $ 19,794 | |
Retained earnings | 137,478 | 151,342 | 137,478 | 151,342 | 151,808 | |||||||
Total stockholders' equity | $ 247,693 | 259,232 | 247,693 | 259,232 | 257,262 | $ 232,954 | ||||||
As Reported | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income (loss) | (12,232) | 573 | 357 | (282) | 236 | 247 | 225 | 426 | 19,851 | |||
Retained earnings | 152,291 | 152,291 | 151,865 | |||||||||
Total stockholders' equity | 260,181 | 260,181 | 257,319 | |||||||||
Revisions | Revision Of Prior Period Financial Statements | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income (loss) | $ (347) | $ (246) | $ (259) | (467) | $ (354) | $ (36) | $ (35) | $ 1,130 | (892) | (57) | ||
Retained earnings | (949) | (949) | (57) | |||||||||
Total stockholders' equity | $ (949) | $ (949) | $ (57) |
Revisions of Prior Period Fin_7
Revisions of Prior Period Financial Statements (Revised Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ (1,710) | $ (12,579) | $ 327 | $ 98 | $ (749) | $ (118) | $ 211 | $ 190 | $ (13,864) | $ (466) | $ 19,794 |
Depreciation and amortization | 23,268 | 22,080 | 21,316 | ||||||||
Deferred taxes | (662) | 314 | (21,575) | ||||||||
Inventory (increase) decrease | 8,256 | (5,102) | (5,221) | ||||||||
Prepaid income taxes and prepaid expenses (increase) decrease | 3,288 | (578) | (1,852) | ||||||||
Net cash provided by operating activities | 29,412 | 23,689 | 17,499 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of rental equipment, property and other equipment | (69,938) | (40,065) | (13,536) | ||||||||
Net cash used in investing activities | (70,175) | (40,285) | (12,838) | ||||||||
Net change in cash and cash equivalents | (41,036) | (16,580) | 5,114 | ||||||||
As Reported | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | (12,232) | 573 | 357 | (282) | 236 | 247 | 225 | 426 | 19,851 | ||
Depreciation and amortization | 22,049 | 21,302 | |||||||||
Deferred taxes | 573 | (21,582) | |||||||||
Inventory (increase) decrease | (5,757) | (5,350) | |||||||||
Prepaid income taxes and prepaid expenses (increase) decrease | (1,318) | (1,806) | |||||||||
Net cash provided by operating activities | 23,414 | 17,452 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of rental equipment, property and other equipment | (39,790) | (13,489) | |||||||||
Net cash used in investing activities | (40,010) | (12,791) | |||||||||
Net change in cash and cash equivalents | (16,580) | 5,114 | |||||||||
Revisions | Revision Of Prior Period Financial Statements | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ (347) | $ (246) | $ (259) | $ (467) | $ (354) | $ (36) | $ (35) | $ 1,130 | (892) | (57) | |
Depreciation and amortization | 31 | 14 | |||||||||
Deferred taxes | (259) | 7 | |||||||||
Inventory (increase) decrease | 655 | 129 | |||||||||
Prepaid income taxes and prepaid expenses (increase) decrease | 740 | (46) | |||||||||
Net cash provided by operating activities | 275 | 47 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of rental equipment, property and other equipment | (275) | (47) | |||||||||
Net cash used in investing activities | (275) | (47) | |||||||||
Net change in cash and cash equivalents | $ 0 | $ 0 |