Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 09, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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 Ln., Ste 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, Par Value $0.01 | |
Trading Symbol | NGS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,468,799 | |
Entity Central Index Key | 0001084991 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 27,559 | $ 11,592 |
Trade accounts receivable, net of allowance for doubtful accounts of $1,119 and $918, respectively | 10,384 | 9,106 |
Inventory | 17,125 | 21,080 |
Federal income tax receivable | 11,083 | 0 |
Prepaid income taxes | 127 | 40 |
Prepaid expenses and other | 596 | 597 |
Total current assets | 66,874 | 42,415 |
Long-term inventory, net of allowance for obsolescence of $37 and $24, respectively | 1,230 | 1,068 |
Rental equipment, net of accumulated depreciation of $179,160 and $162,348, respectively | 210,876 | 217,742 |
Property and equipment, net of accumulated depreciation of $13,327 and $12,847, respectively | 21,824 | 21,869 |
Right of use assets - operating leases, net of accumulated amortization of $306 and $158, respectively | 509 | 604 |
Intangibles, net of accumulated amortization of $1,977 and $1,883, respectively | 1,182 | 1,276 |
Other assets | 1,818 | 1,603 |
Total assets | 304,313 | 286,577 |
Current Liabilities: | ||
Accounts payable | 2,045 | 1,975 |
Accrued liabilities | 4,391 | 2,287 |
Line of credit | 417 | 417 |
Current operating leases | 203 | 189 |
Deferred income | 583 | 640 |
Total current liabilities | 7,639 | 5,508 |
Deferred income tax liability | 41,579 | 31,243 |
Long-term operating leases | 306 | 415 |
Other long-term liabilities | 1,931 | 1,718 |
Total liabilities | 51,455 | 38,884 |
Commitments and contingencies (Notes 6, 9, and 14) | ||
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; 13,290 and 13,178 shares issued, respectively | 133 | 132 |
Additional paid-in capital | 112,052 | 110,573 |
Retained earnings | 141,163 | 137,478 |
Treasury Shares, at cost, 38 shares | (490) | (490) |
Total stockholders' equity | 252,858 | 247,693 |
Total liabilities and stockholders' equity | $ 304,313 | $ 286,577 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Allowance for doubtful accounts | $ 1,119 | $ 918 |
Allowance for obsolescence | 37 | 24 |
Noncurrent Assets: | ||
Accumulated depreciation, rental equipment | 179,160 | 162,348 |
Accumulated depreciation, property and equipment | 13,327 | 12,847 |
Accumulated amortization, operating lease right of use assets | 306 | 158 |
Accumulated amortization, intangibles | $ 1,977 | $ 1,883 |
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, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 13,290,000 | 13,178,000 |
Treasury shares (in shares) | 38,000 | 38,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Rental income | $ 14,861,000 | $ 14,434,000 | $ 46,092,000 | $ 41,393,000 |
Revenue from contracts with customers | 904,000 | 6,418,000 | 4,968,000 | 17,345,000 |
Total revenue | 15,765,000 | 20,852,000 | 51,060,000 | 58,738,000 |
Operating costs and expenses: | ||||
Cost of rentals, exclusive of depreciation stated separately below | 6,760,000 | 6,707,000 | 21,286,000 | 19,540,000 |
Cost of sales, exclusive of depreciation stated separately below | 997,000 | 4,390,000 | 4,596,000 | 12,508,000 |
Cost of service and maintenance, exclusive of depreciation stated separately below | 138,000 | 164,000 | 363,000 | 470,000 |
Selling, general and administrative expenses | 2,493,000 | 2,791,000 | 7,318,000 | 7,966,000 |
Depreciation and amortization | 6,318,000 | 5,920,000 | 18,859,000 | 17,217,000 |
Impairment of goodwill | 0 | 10,039,000 | 0 | 10,039,000 |
Inventory allowance | 0 | 3,350,000 | 0 | 3,350,000 |
Retirement of rental equipment | 0 | 1,512,000 | 0 | 1,512,000 |
Total operating costs and expenses | 16,706,000 | 34,873,000 | 52,422,000 | 72,602,000 |
Operating loss | (941,000) | (14,021,000) | (1,362,000) | (13,864,000) |
Other income (expense): | ||||
Interest expense | (2,000) | (4,000) | (13,000) | (12,000) |
Other income, net | 214,000 | 93,000 | 407,000 | 579,000 |
Total other income, net | 212,000 | 89,000 | 394,000 | 567,000 |
Loss before provision for income taxes | (729,000) | (13,932,000) | (968,000) | (13,297,000) |
Income tax benefit | 167,000 | 1,353,000 | 4,653,000 | 1,143,000 |
Net (loss) income | $ (562,000) | $ (12,579,000) | $ 3,685,000 | $ (12,154,000) |
(Loss) earnings per share: | ||||
Basic (in USD per share) | $ (0.04) | $ (0.96) | $ 0.28 | $ (0.93) |
Diluted (in USD per share) | $ (0.04) | $ (0.96) | $ 0.27 | $ (0.93) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 13,248 | 13,137 | 13,214 | 13,112 |
Diluted (in shares) | 13,248 | 13,137 | 13,471 | 13,112 |
Sales | ||||
Revenue: | ||||
Revenue from contracts with customers | $ 536,000 | $ 5,877,000 | $ 3,994,000 | $ 15,816,000 |
Service and maintenance income | ||||
Revenue: | ||||
Revenue from contracts with customers | $ 368,000 | $ 541,000 | $ 974,000 | $ 1,529,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 13,005 | 0 | |||
Beginning balance 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 (in shares) | 57 | |||||
Exercise of common stock options | 555 | 555 | ||||
Compensation expense on common stock options | 31 | 31 | ||||
Issuance of restricted stock (in shares) | 71 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 464 | $ 1 | 463 | |||
Taxes paid related to net shares settlement of equity awards | (192) | (192) | ||||
Net income (loss) | 98 | 98 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 0 | 13,133 | 0 | |||
Ending balance at Mar. 31, 2019 | 260,188 | $ 0 | $ 131 | 108,617 | 151,440 | $ 0 |
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 13,005 | 0 | |||
Beginning balance at Dec. 31, 2018 | 259,232 | $ 0 | $ 130 | 107,760 | 151,342 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (12,154) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 0 | 13,142 | (38) | |||
Ending balance at Sep. 30, 2019 | 248,690 | $ 0 | $ 131 | 109,861 | 139,188 | $ (490) |
Beginning balance (in shares) at Mar. 31, 2019 | 0 | 13,133 | 0 | |||
Beginning balance at Mar. 31, 2019 | 260,188 | $ 0 | $ 131 | 108,617 | 151,440 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of common stock options | (50) | (50) | ||||
Compensation expense on common stock options | 30 | 30 | ||||
Issuance of restricted stock (in shares) | 5 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 612 | 612 | ||||
Taxes paid related to net shares settlement of equity awards | 9 | 9 | ||||
Net income (loss) | 327 | 327 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 13,138 | 0 | |||
Ending balance at Jun. 30, 2019 | 261,116 | $ 0 | $ 131 | 109,218 | 151,767 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Compensation expense on common stock options | 32 | 32 | ||||
Issuance of restricted stock (in shares) | 4 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 611 | 611 | ||||
Net income (loss) | (12,579) | (12,579) | ||||
Purchase of treasury shares (in shares) | 38 | |||||
Purchase of treasury shares | (490) | $ (490) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 0 | 13,142 | (38) | |||
Ending balance at Sep. 30, 2019 | 248,690 | $ 0 | $ 131 | 109,861 | 139,188 | $ (490) |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 13,178 | (38) | |||
Beginning balance at Dec. 31, 2019 | 247,693 | $ 0 | $ 132 | 110,573 | 137,478 | $ (490) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Compensation expense on common stock options | 17 | 17 | ||||
Issuance of restricted stock (in shares) | 95 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 486 | $ 1 | 485 | |||
Taxes paid related to net shares settlement of equity awards | (149) | (149) | ||||
Net income (loss) | 4,082 | 4,082 | ||||
Ending balance (in shares) at Mar. 31, 2020 | 0 | 13,273 | (38) | |||
Ending balance at Mar. 31, 2020 | 252,129 | $ 0 | $ 133 | 110,926 | 141,560 | $ (490) |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 13,178 | (38) | |||
Beginning balance at Dec. 31, 2019 | 247,693 | $ 0 | $ 132 | 110,573 | 137,478 | $ (490) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 3,685 | |||||
Ending balance (in shares) at Sep. 30, 2020 | 0 | 13,290 | (38) | |||
Ending balance at Sep. 30, 2020 | 252,858 | $ 0 | $ 133 | 112,052 | 141,163 | $ (490) |
Beginning balance (in shares) at Mar. 31, 2020 | 0 | 13,273 | (38) | |||
Beginning balance at Mar. 31, 2020 | 252,129 | $ 0 | $ 133 | 110,926 | 141,560 | $ (490) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Compensation expense on common stock options | 1 | 1 | ||||
Issuance of restricted stock (in shares) | 13 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 562 | 562 | ||||
Net income (loss) | 165 | 165 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 13,286 | (38) | |||
Ending balance at Jun. 30, 2020 | 252,857 | $ 0 | $ 133 | 111,489 | 141,725 | $ (490) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Compensation expense on common stock options | 1 | 1 | ||||
Issuance of restricted stock (in shares) | 4 | |||||
Issuance of restricted stock | 0 | |||||
Compensation expense on restricted common stock | 562 | 562 | ||||
Net income (loss) | (562) | (562) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 0 | 13,290 | (38) | |||
Ending balance at Sep. 30, 2020 | $ 252,858 | $ 0 | $ 133 | $ 112,052 | $ 141,163 | $ (490) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 3,685,000 | $ (12,154,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 18,859,000 | 17,217,000 |
Deferred income taxes | 233,000 | (1,177,000) |
Stock-based compensation | 1,628,000 | 1,780,000 |
Bad debt allowance | 287,000 | 55,000 |
Inventory allowance | 0 | 3,350,000 |
Impairment of goodwill | 0 | 10,039,000 |
Gain on sale of assets | (284,000) | (37,000) |
Retirement of rental equipment | 0 | 1,512,000 |
Loss (gain) on company owned life insurance | 19,000 | (145,000) |
Changes in operating assets and liabilities: | ||
Trade accounts receivables | (1,565,000) | (4,060,000) |
Inventory | 3,793,000 | 3,798,000 |
Federal income tax receivable | (11,083,000) | 0 |
Prepaid expenses and prepaid income taxes | (86,000) | (72,000) |
Accounts payable and accrued liabilities | 2,174,000 | 1,054,000 |
Deferred income | (57,000) | 0 |
Deferred tax liability increase due to tax law change | 10,103,000 | 0 |
Other | 226,000 | 125,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 27,932,000 | 21,285,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of rental equipment, property and other equipment | (11,964,000) | (54,077,000) |
Purchase of company owned life insurance | (254,000) | (207,000) |
Proceeds from sale of property and equipment | 394,000 | 26,000 |
Proceeds from sale of deferred compensation mutual fund | 10,000 | 0 |
Proceeds from insurance claims of property and equipment | 0 | 11,000 |
NET CASH USED IN INVESTING ACTIVITIES | (11,814,000) | (54,247,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from loan | 4,601,000 | 0 |
Repayment of loan | (4,601,000) | 0 |
Payments of other long-term liabilities, net | (2,000) | (16,000) |
Proceeds from exercise of stock options | 0 | 505,000 |
Purchase of treasury shares | 0 | (490,000) |
Taxes paid related to net share settlement of equity awards | (149,000) | (183,000) |
NET CASH USED IN FINANCING ACTIVITIES | (151,000) | (184,000) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 15,967,000 | (33,146,000) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 11,592,000 | 52,628,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 27,559,000 | 19,482,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | 13,000 | 43,000 |
Income taxes paid | 95,000 | 254,000 |
NON-CASH TRANSACTIONS | ||
Transfer of rental equipment components to inventory | 0 | 746,000 |
Transfer of prepaids to rental equipment and inventory | 0 | 958,000 |
Right of use asset acquired through an operating lease | $ 52,000 | $ 126,000 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Natural 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. Recent 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. The effects of the COVID-19 outbreak, including actions taken by businesses and governments to contain the spread of the virus, resulted in a significant, rapid decline in global and U.S. economic conditions. This significant drop in economic activity caused global demand for crude oil to drastically decline. According to the International Energy Agency’s (“IEA”) Oil Market Report for July 2020, global crude oil demand during the second quarter of 2020 declined 16.4 million barrels per day (“MMbpd”) compared to the second quarter of 2019, a decrease of more than 15%. In March 2020, discussion between OPEC and Russia (“OPEC+”) resulted in Saudi Arabia significantly discounting the price of its crude oil, as well as Saudi Arabia and Russia significantly increasing their oil supply in April 2020. The dramatic decline in crude oil demand combined with this increase in supply resulted in unprecedented storage issues and a resulting severe lack of takeaway capacity for oil producers. As a result, crude oil prices reached record or multi-year lows in April. West Texas Intermediate (“WTI”) crude oil traded below $20 per barrel and Brent crude oil traded below $30 per barrel during the second half of April, including an anomalous trading day where WTI traded at negative values on low volume close to the end of a contract trading month. In April 2020, OPEC+ agreed to cut production by 9.7 MMbpd starting in May 2020, while Saudi Arabia voluntarily cut another 1 MMbpd starting in June 2020. Meanwhile, oil production dropped dramatically in non-OPEC countries, including the U.S. Burdened by low prices and takeaway issues, U.S. producers (including several of our customers) shut in production to varying degrees in April and May, and drilling and completion activities dramatically declined. According to IEA’s Oil Market Report for August 2020, U.S. production in May dropped 2 MMbpd from April and 2.9 MMbpd from its all-time high in November 2019. According to IEA’s July report, global oil supply fell to a nine-year low of 86.9 MMbpd in June. As states throughout the U.S., as well as many other countries around the world, began to lift restrictions and reopened their economies to varying degrees, global demand for crude oil partially recovered. This increased demand, combined with the production cuts mentioned above, resulted in the oil markets coming back into balance. After trading below $20 per barrel in the second half of April and averaging $28.53 per barrel in May, WTI crude oil has averaged approximately $40 per barrel from June 1 through early November with greatly reduced price volatility. While oil markets have remained in balance, crude oil supply and demand grew significantly during July and August. According to IEA's Oil Market Reports for August and September 2020, global supply grew by a combined 3.6 MMbpd, while according to IEA’s Oil Market Report for October 2020, global demand in July increased 3.4 MMbpd from June. These issues discussed above resulted in an increasing number of unit returns and shut-in notices from our customers during April and May 2020, which primarily impacted our small (125 HP or less) and medium (126 HP – 399 HP) horsepower units. In late May and throughout June as oil prices partially recovered and stabilized, we received restart notices for several wells that were recently shut in. As a result, our rental revenue, unit utilization, and horsepower utilization declined 6.0%, 5.2% and 4.5%, respectively, in the second quarter when compared to the first quarter of 2020. While we continued to receive several additional restart notices in July and August for wells that were recently shut-in, our utilization has remained stable from June through September. Compared to the second quarter, the Company’s rental revenue declined 1.8%, while the Company’s unit utilization and horsepower utilization remained steady (0.1% and 0.2% increases, respectively) in the third quarter. Unit pricing has also been stable since June. Nevertheless, risks remain high in this environment. As restrictions have been reduced in many states and countries, the rate of COVID-19 infections, hospitalizations and deaths has increased. Since October, the rate of infections has risen very quickly in several countries, with the U.S. setting new records for daily infections in November. This has resulted in a reinstatement, to varying degress, of restrictions in several states and countries, including several European countries. If states and countries need to put further restrictions in place to help prevent the spread of the virus, crude oil demand could decline again. Due to the resurgence of COVID-19 in Europe and the United States, the IEA (in its November Oil Market Report) lowered its near-term global demand outlook for the remainder of 2020 and the first quarter of 2021. While positive news about potential vaccines has provided some support for oil prices, the IEA notes that vaccines are unlikely to significantly boost oil demand until well into 2021. All of these risks could negatively impact oil prices, which would impact our utilization, rental revenues and overall financial performance during the remainder of 2020 as well as 2021. Given the current economic and industry backdrop, we still expect compressor sales to be low for the remainder of 2020 and early 2021, as exploration and production companies have significantly reduced their capital expenditures budgets. In regards to our costs, we implemented various cost cutting measures with respect to operating expenses and capital expenditures during the second quarter. Our operating expense reductions included reductions in our headcount from both layoffs and attrition, wage freezes, centralization of certain processes for better cost control, and the enlistment of our suppliers in our cost cutting efforts. These cost cutting measures helped our financial performance and liquidity during the third quarter, and we expect these cost cutting measures to continue to benefit our financial performance through the remainder of 2020 and into 2021. In addition, as we have done during prior downturns, we have significantly reduced our capital expenditures budget. We invested $12.0 million in capital expenditures during the first nine months of 2020, including $1.0 million during the third quarter of 2020. Depending on customer needs, we plan to incur another $7-$9 million in capital expenditures during the fourth quarter of 2020, bringing our 2020 capital expenditures budget to $19-$21 million, down from $69.9 million in 2019. Finally, in keeping with current commercial precautions and practices in our industry, we have continued to implement guidelines to mitigate health risks to our employees and customers during this outbreak. We adopted remote work processes at our Midland headquarters. Due to continued and resurgent positive COVID-19 cases in the Midland area, including exposure and positive tests among the Company’s professional staff and immediate families, the Company’s corporate headquarters has remained closed through the date of this filing, and is staffed at minimum levels throughout the past and present quarter. Our continued office closure and staffing challenges resulted in delays in our collection and assimilation of financial data related to the completion of our interim financial statements required for this filing. In addition, we adapted our field and fabrication work processes as well. To date, our field operations have continued largely uninterrupted, as the U.S. Department of Homeland Security designated our industry as part of our country’s critical infrastructure. Remote work and work process adjustments related to COVID-19 have not impacted our ability to maintain of service operations or caused us to incur significant costs. In addition, we have not experienced any supply chain issues in connection with the COVID-19 outbreak. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company's financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity during the remainder of 2020 or 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed 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 9). All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. These financial statements include all adjustments, consisting of only normal recurring adjustments, which are necessary to make our financial position at September 30, 2020 and the results of our operations for the three and nine months ended September 30, 2020 and 2019 not misleading. As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying condensed consolidated financial statements do not include all disclosures normally required by generally accepted accounting principles in the United States of America (GAAP). These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 on file with the SEC. In our opinion, the condensed consolidated financial statements are a fair presentation of the financial position, results of operations, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2020. Revenue Recognition Policy The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, 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 Sales Revenue. The Company generates revenue by the sale of custom/fabricated compressors, flare systems and parts, as well as, exchange/rebuilding customer owned compressors and sale of used rental equipment. Custom/fabricated compressors and flare systems - The Company designs and fabricates compressors and flares based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor or flare package is complete and shipped, or in accordance with a bill and hold arrangement, 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 condensed 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 that 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 and 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. Revenue recognized related to bill and hold arrangements for the nine months ended September 30, 2020 and 2019 was approximately $852,000 and $9.4 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, 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 three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, (in thousands) (in thousands) 2020 2019 2020 2019 Compressors - sales $ — $ 4,703 $ 2,211 $ 12,199 Flares - sales 67 243 308 783 Other (parts/rebuilds) - sales 469 931 1,475 2,834 Service and maintenance 368 541 974 1,529 Total revenue from contracts with customers 904 6,418 4,968 17,345 Add: ASC 842 rental revenue 14,861 14,434 46,092 41,393 Total revenue $ 15,765 $ 20,852 $ 51,060 $ 58,738 Contract Balances As of September 30, 2020 and December 31, 2019, we had the following receivables and deferred income from contracts with customers: (in thousands) September 30, 2020 December 31, 2019 Accounts Receivable Accounts receivable - contracts with customers $ 1,252 $ 3,061 Accounts receivable - ASC 842 10,251 6,963 Total Accounts Receivable $ 11,503 $ 10,024 Less: Allowance for doubtful accounts (1,119) (918) Total Accounts Receivable, net $ 10,384 $ 9,106 Deferred income $ 583 $ 640 The Company recognized rental revenue of $73,000 for the nine months ended September 30, 2020 that was included in deferred income at the beginning of 2020. For the year ended December 31, 2019, the Company recognized revenue of $48,000 from amounts related to sales that were included in deferred income at the beginning of 2019. The increases (decreases) of accounts receivable and deferred income were primarily due to normal timing differences between our performance and the customers’ payments. Transaction Price Allocated to the Remaining Performance Obligations As of September 30, 2020, 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 expenses on our condensed 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. ASC 842 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 Company, as a lessor, 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. 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 assesses 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 is 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 as a separate operating expense. Gains and losses resulting from sales and dispositions of other property and equipment are included within other income (expense). Maintenance and repairs are charged to cost of rentals as incurred. 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 carryforwards. 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. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense in the tax provision in our condensed consolidated statements of operations. We account for uncertain tax positions in accordance with guidance in 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 condensed consolidated financial statements. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. We have no liabilities for uncertain tax positions as of September 30, 2020. Our policy regarding income tax interest and penalties is to expense those items as interest expense and other expense, respectively. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the economic impact caused by the COVID-19 pandemic. The CARES Act, among other things, permits federal income tax net operating loss ("NOL") carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid federal income taxes. Please see Note 4, Federal Income Tax Receivable for a discussion about the impact on our condensed consolidated financial statements. 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 September 30, 2020 and December 31, 2019 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 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 at our facilities in Midland, Texas and Tulsa, Oklahoma. Our customers primarily consist of entities in the business of producing oil and 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 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 As stated in our Annual Report on Form 10-K for the year ended December 31, 2019, we revised our consolidated financial statements for the years ended December 31, 2018 and 2017, as well as for interim periods in 2019 and 2018, for immaterial operating costs and expenses that were inappropriately capitalized. The following is a summary of the revisions to our unaudited, condensed consolidated financial statements for the three and nine months ended September 30, 2019: Revised Condensed Consolidated Statements of Operations 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 costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 6,300 407 6,707 Depreciation and amortization 5,867 53 5,920 Total operating costs and expenses 34,413 460 34,873 Operating loss (13,561) (460) (14,021) Loss before provision for income taxes (13,472) (460) (13,932) Income tax benefit 1,240 113 1,353 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 nine months ended September 30, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 58,738 $ — $ 58,738 Operating costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 18,544 996 19,540 Depreciation and amortization 17,108 109 17,217 Total operating costs and expenses 71,497 1,105 72,602 Operating loss (12,759) (1,105) (13,864) Loss before provision for income taxes (12,192) (1,105) (13,297) Income tax benefit 890 253 1,143 Net loss (11,302) (852) (12,154) Loss per share, basic (0.86) (0.07) (0.93) Loss per share, diluted (0.86) (0.07) (0.93) Revised Condensed Consolidated Statement of Stockholders' Equity For the nine months ended September 30, 2019 ($ in thousands) As Reported Revisions As Revised Retained earnings balance at January 1, 2019 $ 152,291 $ (949) $ 151,342 Total stockholders' equity at January 1, 2019 260,181 (949) 259,232 Net income (loss) for the three months ended March 31, 2019 357 (259) 98 Retained earnings balance at March 31, 2019 152,648 (1,208) 151,440 Total stockholders' equity at March 31, 2019 261,396 (1,208) 260,188 Net income (loss) for the three months ended June 30, 2019 $ 573 $ (246) $ 327 Retained earnings balance at June 30, 2019 153,221 (1,454) 151,767 Total stockholders' equity at June 30, 2019 262,570 (1,454) 261,116 Net income (loss) for the three months ended September 30, 2019 $ (12,232) $ (347) $ (12,579) Retained earnings balance at September 30, 2019 140,989 (1,801) 139,188 Total stockholders' equity at September 30, 2019 250,491 (1,801) 248,690 Revised Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2019 ($ in thousands) As Reported Revisions As Revised Cash flows from operating activities: Net income $ (11,302) $ (852) $ (12,154) Depreciation and amortization 17,108 109 17,217 Deferred taxes (929) (248) (1,177) Inventory decrease 1,861 1,937 3,798 Prepaid expenses and prepaid income taxes decrease (increase) 198 (270) (72) Net cash provided by operating activities 20,609 676 21,285 Cash flows from investing activities: Purchase of rental equipment, property and other equipment (53,401) (676) (54,077) Net cash used in investing activities (53,571) (676) (54,247) Net change in cash and cash equivalents (33,146) — (33,146) |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Our inventory, net of allowance for obsolescence of $37,000 at September 30, 2020 and $24,000 at December 31, 2019, consisted of the following amounts: (in thousands) September 30, 2020 December 31, 2019 Raw materials - current $ 16,275 $ 19,388 Work-in-process 850 1,692 Inventory - current 17,125 21,080 Raw materials - long term (net of allowances of $37 and $24, respectively) 1,230 1,068 Inventory - total $ 18,355 $ 22,148 Our long-term inventory consists of raw materials that remain viable but that the Company does not expect to sell or use within the year. During the nine months ended September 30, 2020, there were no write-offs of obsolete inventory against the allowance for obsolescence. |
Federal Income Tax Receivable
Federal Income Tax Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Federal Income Tax Receivable | Federal Income Tax ReceivableAs discussed in Note 2, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid federal income taxes. The Company generated significant NOLs during 2018 and 2019, and plans to carryback these losses for five years. Accordingly, as of March 31, 2020, the Company recorded a federal income tax receivable of $15.0 million and an increase to its deferred income tax liability of $10.1 million on its condensed consolidated balance sheet. During the third quarter of 2020, the Company received refunds totaling $3.9 million related to its 2018 NOLs, which reduced its federal income tax receivable to $11.1 million on its condensed consolidated balance sheet as of September 30, 2020. In addition, the Company recorded a current income tax benefit of $4.9 million on its condensed consolidated statement of operations for the nine months ended September 30, 2020. |
Rental Equipment
Rental Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Rental Equipment | Rental Equipment Our rental equipment and associated accumulated depreciation as of September 30, 2020 and December 31, 2019, respectively, consisted of the following: (in thousands) September 30, 2020 December 31, 2019 Compressor units $ 385,920 $ 370,961 Work-in-progress 4,116 9,129 Rental equipment 390,036 380,090 Accumulated depreciation (179,160) (162,348) Rental equipment, net of accumulated depreciation $ 210,876 $ 217,742 We evaluated our rental equipment for potential impairment as of September 30, 2020, and determined that no such impairment existed as of that date. Retirement of Rental Equipment |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
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 1 year to almost 9 years. Renewal and termination options are included in the lease term when it is reasonably certain that the Company will exercise the option. 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 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 condensed consolidated statements of operations and had no impact on the Company's condensed consolidated statements of cash flows. The impact of lease standard ASC 842 on the September 30, 2020 condensed consolidated balance sheet was as follows: Classification on the Condensed Consolidated Balance Sheet September 30, 2020 (in thousands, except years) Operating lease assets Right of use assets-operating leases $ 509 Current lease liabilities Current operating leases $ 203 Noncurrent lease liabilities Long-term operating leases 306 Total lease liabilities $ 509 Weighted average remaining lease term in years 3.1 Implicit Rate 3.1 % Operating lease costs are recognized on a straight-line basis over the lease term. Total operating lease costs for the nine months ended September 30, 2020 was approximately $419,000. September 30, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating lease cost (1) (2) $ 419 (1) Lease costs are classified on the condensed consolidated statements of operations in cost of sales, cost of compressors and selling, general and administrative expenses. (2) Includes costs of $275,000 for leases with terms of 12 months or less and $144,000 for leases with terms greater than 12 months. The following table shows the future maturities of lease liabilities as of September 30, 2020: Years Ending December 31, Lease Liabilities (in thousands) 2020 (excluding the nine months ended September 30, 2020) $ 54 2021 198 2022 65 2023 38 2024 38 Thereafter 168 Total lease payments 561 Less: Imputed interest 52 Total $ 509 |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility We have a senior secured revolving credit agreement the ("Amended Credit Agreement") with JP Morgan Chase Bank, N.A (the "Lender") with an aggregate commitment of $30 million, subject to collateral availability. We also have a right to request from the Lender, on an uncommitted basis, an increase of up to $20 million on the aggregate commitment (which could potentially increase the commitment amount to $50 million). Borrowing Base . At any time before the maturity of the Amended Credit Agreement, we may draw, repay and re-borrow amounts available under the borrowing base up to the maximum aggregate availability discussed above. Generally, the borrowing base equals the sum of (a) 80% of our eligible accounts receivable plus (b) 50% of the book value of our eligible general inventory (not to exceed 50% of the commitment amount at the time) plus (c) 75% of the book value of our eligible equipment inventory. The Lender may adjust the borrowing base components if material deviations in the collateral are discovered in future audits of the collateral. We had $29.5 million borrowing base availability at September 30, 2020 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 1.25%. For purposes of the CB Floating Rate, the Applicable Margin is 1.50%. For the nine month period ended September 30, 2020, our weighted average interest rate was 2.11%. 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 leases receivables, along with a first priority lien on a variable number of our leased compressors, the book value of which must be maintained at a minimum of 2.00 to 1.00 commitment coverage ratio (such ratio being equal to (i) the amount of the borrowing base as of such date to (ii) the amount of the commitment as of such date). The Fifth Amendment of Security Agreement in connection with our Amended Credit Agreement was executed by the Company and the Lender on September 28, 2020. This amendment contained an updated list our leased compressors, which provided our the Lender with additional collateral under its first priority lien. 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 September 30, 2020, we were in compliance with all financial 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 September 30, 2020 and December 31, 2019, our outstanding balance on the line of credit was $417,000. |
CARES Act Loan
CARES Act Loan | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
CARES Act Loan | Credit Facility We have a senior secured revolving credit agreement the ("Amended Credit Agreement") with JP Morgan Chase Bank, N.A (the "Lender") with an aggregate commitment of $30 million, subject to collateral availability. We also have a right to request from the Lender, on an uncommitted basis, an increase of up to $20 million on the aggregate commitment (which could potentially increase the commitment amount to $50 million). Borrowing Base . At any time before the maturity of the Amended Credit Agreement, we may draw, repay and re-borrow amounts available under the borrowing base up to the maximum aggregate availability discussed above. Generally, the borrowing base equals the sum of (a) 80% of our eligible accounts receivable plus (b) 50% of the book value of our eligible general inventory (not to exceed 50% of the commitment amount at the time) plus (c) 75% of the book value of our eligible equipment inventory. The Lender may adjust the borrowing base components if material deviations in the collateral are discovered in future audits of the collateral. We had $29.5 million borrowing base availability at September 30, 2020 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 1.25%. For purposes of the CB Floating Rate, the Applicable Margin is 1.50%. For the nine month period ended September 30, 2020, our weighted average interest rate was 2.11%. 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 leases receivables, along with a first priority lien on a variable number of our leased compressors, the book value of which must be maintained at a minimum of 2.00 to 1.00 commitment coverage ratio (such ratio being equal to (i) the amount of the borrowing base as of such date to (ii) the amount of the commitment as of such date). The Fifth Amendment of Security Agreement in connection with our Amended Credit Agreement was executed by the Company and the Lender on September 28, 2020. This amendment contained an updated list our leased compressors, which provided our the Lender with additional collateral under its first priority lien. 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 September 30, 2020, we were in compliance with all financial 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 September 30, 2020 and December 31, 2019, our outstanding balance on the line of credit was $417,000. |
Deferred Compensation Plan
Deferred Compensation Plan | 9 Months Ended |
Sep. 30, 2020 | |
Postemployment Benefits [Abstract] | |
Deferred Compensation Plan | Deferred Compensation Plan The Company has 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 of up to 90% of a participant’s base salary, bonus, commissions, director fees and restricted stock unit 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 $1.7 million and $1.5 million as of September 30, 2020 and December 31, 2019, respectively. We reported in other (expense) income in the condensed consolidated statements of operations a loss related to the policy of approximately $19,000 and a gain of approximately $145,000 for the nine months ended September 30, 2020 and 2019, 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 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. The deferred compensation liability, which is included in other long-term liabilities in the condensed consolidated balance sheet, was $1.9 million and $1.7 million as of September 30, 2020 and December 31, 2019, respectively. 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 September 30, 2020 and 2019, respectively, we had 47,299 and 94,148 unvested restricted stock units being deferred. As of September 30, 2020, we had released and issued 144,401 shares with a value of $2.2 million to the deferred compensation plan. As of September 30, 2019, we had released and issued 80,604 shares with a value of $1.7 million to the deferred compensation plan. |
Stock-Based and Other Long-Term
Stock-Based and Other Long-Term Incentive Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based and Other Long-Term Incentive Compensation | Stock-Based and Other Long-Term Incentive Compensation Stock Options A summary of all option activity as of December 31, 2019, and changes during the nine months ended September 30, 2020 is presented below. Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2019 208,334 $ 23.67 3.66 $ — Granted 5,000 4.91 9.56 18 Cancelled / Forfeited (7,000) 31.12 — — Expired (40,000) 19.11 Outstanding, September 30, 2020 166,334 $ 23.89 3.91 $ 18 Exercisable, September 30, 2020 161,334 $ 24.48 3.74 $ — The following table summarizes information about our stock options outstanding at September 30, 2020: 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 13,500 4.37 $ 11.19 8,500 $ 14.89 $15.71-17.81 16,000 0.32 17.81 16,000 17.81 $17.82-20.48 20,500 2.47 18.75 20,500 18.75 $20.49-30.41 116,334 4.61 27.11 116,334 27.11 166,334 3.91 $ 23.89 161,334 $ 24.48 The summary of the status of our unvested stock options as of December 31, 2019 and changes during the nine months ended September 30, 2020 is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2019 10,433 $ 11.93 Granted 5,000 2.07 Vested (10,433) 11.93 Unvested at September 30, 2020 5,000 $ 2.07 As of September 30, 2020, there was $8,000 of unrecognized compensation cost related to unvested options. Total compensation expense for stock options was $18,000 and $92,000 for the nine months ended September 30, 2020 and 2019, respectively. Restricted Shares/Units In accordance with the Company's employment agreement with Stephen Taylor, the Company's Chief Executive Officer, the Compensation Committee of the Company's Board of Directors reviewed his performance in determining the issuance of restricted common stock. Based on this review, which included consideration of the Company's 2019 performance, Mr. Taylor was awarded 94,133 restricted shares/units on April 28, 2020, which vest over three years, in equal annual installments, beginning April 28, 2021. On April 28, 2020, the Compensation Committee awarded 10,000 restricted shares/units to our Vice President of Technical Services, James Hazlett. The restricted shares to Mr. Hazlett vest over three years, in equal annual installments, beginning April 28, 2021. We also awarded and issued 4,432 shares of restricted common stock to each of our four independent members of our Board of Directors as partial payment for their services in 2020. These awards of restricted stock vest one year from the date of grant. Total compensation expense related to these and previously granted restricted stock awards was $1.7 million for the nine months ended September 30, 2020 and 2019. As of September 30, 2020, there was a total of $2.3 million of unrecognized compensation expense related to these shares/units which is expected to be recognized over the next 2.5 years. Other Long-Term Incentive Compensation On April 28, 2020, based on its review of Mr. Taylor's 2019 performance, the Compensation Committee also issued a long-term incentive award of $1,061,820 to Mr. Taylor that vests in equal, annual tranches over three years. At the time of vesting, each tranche will be payable in cash or common stock at the discretion of the Compensation Committee. In addition, on April 28, 2020, we issued a $50,000 award to each of our four independent members of our Board of Directors as partial payment for their services in 2020. These awards vest one year from the date of grant and are payable in cash upon vesting. The Company accounts for these other long-term incentive awards to Mr. Taylor and our independent Board members as liabilities under accrued liabilities on our condensed consolidated balance sheet. The vesting of these awards awards is subject |
Impairment of Goodwill
Impairment of Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Goodwill | Impairment of Goodwill Goodwill represents the cost in excess of fair value of the identifiable net assets acquired. Goodwill was 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, the Company recorded a full impairment charge of its goodwill of $10.0 million during the three months ended September 30, 2019. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation (in thousands, except per share data) : Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net (loss) income $ (562) $ (12,579) $ 3,685 $ (12,154) Denominator for (loss) earnings per basic common share: Weighted average common shares outstanding 13,248 13,137 13,214 13,112 Denominator for (loss) earnings per diluted common share: Weighted average common shares outstanding 13,248 13,137 13,214 13,112 Dilutive effect of stock options and restricted shares — — 257 — Diluted weighted average shares 13,248 13,137 13,471 13,112 Earnings per common share: Basic $ (0.04) $ (0.96) $ 0.28 $ (0.93) Diluted $ (0.04) $ (0.96) $ 0.27 $ (0.93) For the three months ended September 30, 2020, restricted stock and stock options were not included in the computation of diluted loss per share due to their antidilutive effect. For the nine months ended September 30, 2020, options to purchase 171,900 weighted average shares of common stock with exercise prices ranging from $14.89 to $33.36 were not included in the computation of diluted earnings per share due to their antidilutive effect. For the three and nine months ended September 30, 2019, restricted stock and stock options were not included in the computation of diluted loss per share due to their antidilutive effect. |
Related Party
Related Party | 9 Months Ended |
Sep. 30, 2020 | |
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 | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesFrom time to time, we are a party to various legal proceedings in the ordinary course of our business. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from these actions will not have a material adverse effect on our financial position, results of operations or cash flow. We are not currently a party to any material legal proceedings, and we are not aware of any threatened material litigation. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Leslie Shockley Beyer joined our Board of Directors on June 10, 2020. As part of her 2020 compensation as an independent Board member, the Compensation Committee of our Board awarded Ms. Beyer 1,324 shares of restricted stock on October 15, 2020. In addition, the Compensation Committee also awarded Ms. Beyer a cash award of $25,000. Both of Ms. Beyer's awards vest on June 20, 2021, and both are subject to acceleration under certain events. As disclosed on Form 8-K, on October 23, 2020, our Board of Directors authorized the Company to enter into a share repurchase program for the purchase of up to an aggregate amount of $10 million of the Company’s common stock in accordance with the guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. Repurchases may be made in open market purchases, block trades or in privately negotiated transactions. Repurchases, if any, under the program will be made at the discretion of management, and will depend upon market pricing and conditions, business, legal, accounting and other considerations. The repurchase program may be modified, suspended or terminated at any time without notice, in the Company’s discretion, based upon a number of factors, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, the need for capital in the Company’s operations and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to repurchase any shares. This repurchase plan expires on September 30, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed 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 9). All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. These financial statements include all adjustments, consisting of only normal recurring adjustments, which are necessary to make our financial position at September 30, 2020 and the results of our operations for the three and nine months ended September 30, 2020 and 2019 not misleading. As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying condensed consolidated financial statements do not include all disclosures normally required by generally accepted accounting principles in the United States of America (GAAP). These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 on file with the SEC. In our opinion, the condensed consolidated financial statements are a fair presentation of the financial position, results of operations, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2020. |
Revenue Recognition Policy | Revenue Recognition Policy The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, 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 Sales Revenue. The Company generates revenue by the sale of custom/fabricated compressors, flare systems and parts, as well as, exchange/rebuilding customer owned compressors and sale of used rental equipment. Custom/fabricated compressors and flare systems - The Company designs and fabricates compressors and flares based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor or flare package is complete and shipped, or in accordance with a bill and hold arrangement, 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 condensed 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 that 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 and 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. Revenue recognized related to bill and hold arrangements for the nine months ended September 30, 2020 and 2019 was approximately $852,000 and $9.4 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, 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 expenses on our condensed 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. ASC 842 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. |
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 assesses 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 is 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 as a separate operating expense. Gains and losses resulting from sales and dispositions of other property and equipment are included within other income (expense). Maintenance and repairs are charged to cost of rentals as incurred. |
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 carryforwards. 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. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense in the tax provision in our condensed consolidated statements of operations. We account for uncertain tax positions in accordance with guidance in 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 condensed consolidated financial statements. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. We have no liabilities for uncertain tax positions as of September 30, 2020. Our policy regarding income tax interest and penalties is to expense those items as interest expense and other expense, respectively. |
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. |
Segment 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 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 at our facilities in Midland, Texas and Tulsa, Oklahoma. Our customers primarily consist of entities in the business of producing oil and 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 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table shows the Company's revenue disaggregated by product or service type for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, (in thousands) (in thousands) 2020 2019 2020 2019 Compressors - sales $ — $ 4,703 $ 2,211 $ 12,199 Flares - sales 67 243 308 783 Other (parts/rebuilds) - sales 469 931 1,475 2,834 Service and maintenance 368 541 974 1,529 Total revenue from contracts with customers 904 6,418 4,968 17,345 Add: ASC 842 rental revenue 14,861 14,434 46,092 41,393 Total revenue $ 15,765 $ 20,852 $ 51,060 $ 58,738 |
Schedule of Contract with Customer, Asset and Liability | As of September 30, 2020 and December 31, 2019, we had the following receivables and deferred income from contracts with customers: (in thousands) September 30, 2020 December 31, 2019 Accounts Receivable Accounts receivable - contracts with customers $ 1,252 $ 3,061 Accounts receivable - ASC 842 10,251 6,963 Total Accounts Receivable $ 11,503 $ 10,024 Less: Allowance for doubtful accounts (1,119) (918) Total Accounts Receivable, net $ 10,384 $ 9,106 Deferred income $ 583 $ 640 |
Schedules of Revisions of Prior Period Financial Statements | The following is a summary of the revisions to our unaudited, condensed consolidated financial statements for the three and nine months ended September 30, 2019: Revised Condensed Consolidated Statements of Operations 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 costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 6,300 407 6,707 Depreciation and amortization 5,867 53 5,920 Total operating costs and expenses 34,413 460 34,873 Operating loss (13,561) (460) (14,021) Loss before provision for income taxes (13,472) (460) (13,932) Income tax benefit 1,240 113 1,353 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 nine months ended September 30, 2019 ($ in thousands, except per share) As Reported Revisions As Revised Total revenue $ 58,738 $ — $ 58,738 Operating costs and expenses: Cost of rentals, exclusive of depreciation stated separately below 18,544 996 19,540 Depreciation and amortization 17,108 109 17,217 Total operating costs and expenses 71,497 1,105 72,602 Operating loss (12,759) (1,105) (13,864) Loss before provision for income taxes (12,192) (1,105) (13,297) Income tax benefit 890 253 1,143 Net loss (11,302) (852) (12,154) Loss per share, basic (0.86) (0.07) (0.93) Loss per share, diluted (0.86) (0.07) (0.93) Revised Condensed Consolidated Statement of Stockholders' Equity For the nine months ended September 30, 2019 ($ in thousands) As Reported Revisions As Revised Retained earnings balance at January 1, 2019 $ 152,291 $ (949) $ 151,342 Total stockholders' equity at January 1, 2019 260,181 (949) 259,232 Net income (loss) for the three months ended March 31, 2019 357 (259) 98 Retained earnings balance at March 31, 2019 152,648 (1,208) 151,440 Total stockholders' equity at March 31, 2019 261,396 (1,208) 260,188 Net income (loss) for the three months ended June 30, 2019 $ 573 $ (246) $ 327 Retained earnings balance at June 30, 2019 153,221 (1,454) 151,767 Total stockholders' equity at June 30, 2019 262,570 (1,454) 261,116 Net income (loss) for the three months ended September 30, 2019 $ (12,232) $ (347) $ (12,579) Retained earnings balance at September 30, 2019 140,989 (1,801) 139,188 Total stockholders' equity at September 30, 2019 250,491 (1,801) 248,690 Revised Condensed Consolidated Statement of Cash Flows For the nine months ended September 30, 2019 ($ in thousands) As Reported Revisions As Revised Cash flows from operating activities: Net income $ (11,302) $ (852) $ (12,154) Depreciation and amortization 17,108 109 17,217 Deferred taxes (929) (248) (1,177) Inventory decrease 1,861 1,937 3,798 Prepaid expenses and prepaid income taxes decrease (increase) 198 (270) (72) Net cash provided by operating activities 20,609 676 21,285 Cash flows from investing activities: Purchase of rental equipment, property and other equipment (53,401) (676) (54,077) Net cash used in investing activities (53,571) (676) (54,247) Net change in cash and cash equivalents (33,146) — (33,146) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Our inventory, net of allowance for obsolescence of $37,000 at September 30, 2020 and $24,000 at December 31, 2019, consisted of the following amounts: (in thousands) September 30, 2020 December 31, 2019 Raw materials - current $ 16,275 $ 19,388 Work-in-process 850 1,692 Inventory - current 17,125 21,080 Raw materials - long term (net of allowances of $37 and $24, respectively) 1,230 1,068 Inventory - total $ 18,355 $ 22,148 |
Rental Equipment (Tables)
Rental Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Rental Equipment | Our rental equipment and associated accumulated depreciation as of September 30, 2020 and December 31, 2019, respectively, consisted of the following: (in thousands) September 30, 2020 December 31, 2019 Compressor units $ 385,920 $ 370,961 Work-in-progress 4,116 9,129 Rental equipment 390,036 380,090 Accumulated depreciation (179,160) (162,348) Rental equipment, net of accumulated depreciation $ 210,876 $ 217,742 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Impact | The impact of lease standard ASC 842 on the September 30, 2020 condensed consolidated balance sheet was as follows: Classification on the Condensed Consolidated Balance Sheet September 30, 2020 (in thousands, except years) Operating lease assets Right of use assets-operating leases $ 509 Current lease liabilities Current operating leases $ 203 Noncurrent lease liabilities Long-term operating leases 306 Total lease liabilities $ 509 Weighted average remaining lease term in years 3.1 Implicit Rate 3.1 % |
Schedule of Cash Flow Impact | September 30, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating lease cost (1) (2) $ 419 (1) Lease costs are classified on the condensed 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 as of September 30, 2020: Years Ending December 31, Lease Liabilities (in thousands) 2020 (excluding the nine months ended September 30, 2020) $ 54 2021 198 2022 65 2023 38 2024 38 Thereafter 168 Total lease payments 561 Less: Imputed interest 52 Total $ 509 |
Stock-Based and Other Long-Te_2
Stock-Based and Other Long-Term Incentive Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of all option activity as of December 31, 2019, and changes during the nine months ended September 30, 2020 is presented below. Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2019 208,334 $ 23.67 3.66 $ — Granted 5,000 4.91 9.56 18 Cancelled / Forfeited (7,000) 31.12 — — Expired (40,000) 19.11 Outstanding, September 30, 2020 166,334 $ 23.89 3.91 $ 18 Exercisable, September 30, 2020 161,334 $ 24.48 3.74 $ — |
Summary of Stock Options Outstanding | The following table summarizes information about our stock options outstanding at September 30, 2020: 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 13,500 4.37 $ 11.19 8,500 $ 14.89 $15.71-17.81 16,000 0.32 17.81 16,000 17.81 $17.82-20.48 20,500 2.47 18.75 20,500 18.75 $20.49-30.41 116,334 4.61 27.11 116,334 27.11 166,334 3.91 $ 23.89 161,334 $ 24.48 |
Status of Unvested Stock Options | The summary of the status of our unvested stock options as of December 31, 2019 and changes during the nine months ended September 30, 2020 is presented below. Unvested stock options: Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2019 10,433 $ 11.93 Granted 5,000 2.07 Vested (10,433) 11.93 Unvested at September 30, 2020 5,000 $ 2.07 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation (in thousands, except per share data) : Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 Numerator: Net (loss) income $ (562) $ (12,579) $ 3,685 $ (12,154) Denominator for (loss) earnings per basic common share: Weighted average common shares outstanding 13,248 13,137 13,214 13,112 Denominator for (loss) earnings per diluted common share: Weighted average common shares outstanding 13,248 13,137 13,214 13,112 Dilutive effect of stock options and restricted shares — — 257 — Diluted weighted average shares 13,248 13,137 13,471 13,112 Earnings per common share: Basic $ (0.04) $ (0.96) $ 0.28 $ (0.93) Diluted $ (0.04) $ (0.96) $ 0.27 $ (0.93) |
Description of Business (Detail
Description of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||||
Decrease in rental revenue, percentage | 1.80% | 6.00% | ||
Decrease in unit utilization, percentage | 0.10% | 5.20% | ||
Decrease in horsepower utilization, percentage | 0.20% | 4.50% | ||
Capital expenditures | $ 1 | $ 12 | $ 69.9 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 15,765 | $ 20,852 | $ 51,060 | $ 58,738 |
Number of operating segments | segment | 1 | |||
Minimum | ||||
Revenue from External Customer [Line Items] | ||||
Amortization period of capitalized contract costs | 1 year | 1 year | ||
Property and equipment, estimated useful life | 3 years | |||
Minimum | Rental Contracts, Excluding Large Horsepower Compressors | ||||
Revenue from External Customer [Line Items] | ||||
Rental contract term | 6 months | 6 months | ||
Maximum | ||||
Revenue from External Customer [Line Items] | ||||
Property and equipment, estimated useful life | 39 years | |||
Maximum | Rental Contracts, Excluding Large Horsepower Compressors | ||||
Revenue from External Customer [Line Items] | ||||
Rental contract term | 24 months | 24 months | ||
Maximum | Rental Contracts, Large Horsepower Compressors | ||||
Revenue from External Customer [Line Items] | ||||
Rental contract term | 60 months | 60 months | ||
Rental Equipment | Minimum | ||||
Revenue from External Customer [Line Items] | ||||
Property and equipment, estimated useful life | 15 years | |||
Rental Equipment | Maximum | ||||
Revenue from External Customer [Line Items] | ||||
Property and equipment, estimated useful life | 25 years | |||
Bill and Hold Arrangement | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 852,000 | $ 9,400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 904 | $ 6,418 | $ 4,968 | $ 17,345 |
Add: ASC 842 rental revenue | 14,861 | 14,434 | 46,092 | 41,393 |
Total revenue | 15,765 | 20,852 | 51,060 | 58,738 |
Compressors - sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 4,703 | 2,211 | 12,199 |
Flares - sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 67 | 243 | 308 | 783 |
Other (parts/rebuilds) - sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 469 | 931 | 1,475 | 2,834 |
Service and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 368 | $ 541 | $ 974 | $ 1,529 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Contract Balances) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Receivable | ||
Accounts receivable - contracts with customers | $ 1,252 | $ 3,061 |
Accounts receivable - ASC 842 | 10,251 | 6,963 |
Total Accounts Receivable | 11,503 | 10,024 |
Less: Allowance for doubtful accounts | (1,119) | (918) |
Total Accounts Receivable, net | 10,384 | 9,106 |
Deferred income | 583 | 640 |
Revenue recognized | $ 73 | $ 48 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Revised Condensed Consolidated Statements of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||||||
Total revenue | $ 15,765 | $ 20,852 | $ 51,060 | $ 58,738 | ||||
Operating costs and expenses: | ||||||||
Cost of rentals, exclusive of depreciation stated separately below | 6,760 | 6,707 | 21,286 | 19,540 | ||||
Depreciation and amortization | 6,318 | 5,920 | 18,859 | 17,217 | ||||
Total operating costs and expenses | 16,706 | 34,873 | 52,422 | 72,602 | ||||
Operating loss | (941) | (14,021) | (1,362) | (13,864) | ||||
Loss before provision for income taxes | (729) | (13,932) | (968) | (13,297) | ||||
Income tax benefit | 167 | 1,353 | 4,653 | 1,143 | ||||
Net loss | $ (562) | $ 165 | $ 4,082 | $ (12,579) | $ 327 | $ 98 | $ 3,685 | $ (12,154) |
Loss per share, basic (in USD per share) | $ (0.04) | $ (0.96) | $ 0.28 | $ (0.93) | ||||
Loss per share, diluted (in USD per share) | $ (0.04) | $ (0.96) | $ 0.27 | $ (0.93) | ||||
As Reported | ||||||||
Revenue: | ||||||||
Total revenue | $ 20,852 | $ 58,738 | ||||||
Operating costs and expenses: | ||||||||
Cost of rentals, exclusive of depreciation stated separately below | 6,300 | 18,544 | ||||||
Depreciation and amortization | 5,867 | 17,108 | ||||||
Total operating costs and expenses | 34,413 | 71,497 | ||||||
Operating loss | (13,561) | (12,759) | ||||||
Loss before provision for income taxes | (13,472) | (12,192) | ||||||
Income tax benefit | 1,240 | 890 | ||||||
Net loss | $ (12,232) | 573 | 357 | $ (11,302) | ||||
Loss per share, basic (in USD per share) | $ (0.93) | $ (0.86) | ||||||
Loss per share, diluted (in USD per share) | $ (0.93) | $ (0.86) | ||||||
Revisions | Revision of Prior Period Financial Statements | ||||||||
Revenue: | ||||||||
Total revenue | $ 0 | $ 0 | ||||||
Operating costs and expenses: | ||||||||
Cost of rentals, exclusive of depreciation stated separately below | 407 | 996 | ||||||
Depreciation and amortization | 53 | 109 | ||||||
Total operating costs and expenses | 460 | 1,105 | ||||||
Operating loss | (460) | (1,105) | ||||||
Loss before provision for income taxes | (460) | (1,105) | ||||||
Income tax benefit | 113 | 253 | ||||||
Net loss | $ (347) | $ (246) | $ (259) | $ (852) | ||||
Loss per share, basic (in USD per share) | $ (0.03) | $ (0.07) | ||||||
Loss per share, diluted (in USD per share) | $ (0.03) | $ (0.07) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Revised Condensed Consolidated Statement of Stockholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings, beginning of period | $ 137,478 | $ 151,767 | $ 151,440 | $ 151,342 | $ 137,478 | $ 151,342 | ||
Beginning balance | $ 252,857 | $ 252,129 | 247,693 | 261,116 | 260,188 | 259,232 | 247,693 | 259,232 |
Net loss | (562) | 165 | 4,082 | (12,579) | 327 | 98 | 3,685 | (12,154) |
Retained earnings, end of period | 141,163 | 139,188 | 151,767 | 151,440 | 141,163 | 139,188 | ||
Ending balance | $ 252,858 | $ 252,857 | $ 252,129 | 248,690 | 261,116 | 260,188 | $ 252,858 | 248,690 |
As Reported | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings, beginning of period | 153,221 | 152,648 | 152,291 | 152,291 | ||||
Beginning balance | 262,570 | 261,396 | 260,181 | 260,181 | ||||
Net loss | (12,232) | 573 | 357 | (11,302) | ||||
Retained earnings, end of period | 140,989 | 153,221 | 152,648 | 140,989 | ||||
Ending balance | 250,491 | 262,570 | 261,396 | 250,491 | ||||
Revisions | Revision of Prior Period Financial Statements | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings, beginning of period | (1,454) | (1,208) | (949) | (949) | ||||
Beginning balance | (1,454) | (1,208) | (949) | (949) | ||||
Net loss | (347) | (246) | (259) | (852) | ||||
Retained earnings, end of period | (1,801) | (1,454) | (1,208) | (1,801) | ||||
Ending balance | $ (1,801) | $ (1,454) | $ (1,208) | $ (1,801) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Revised Condensed Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||||||||
Net income (loss) | $ (562) | $ 165 | $ 4,082 | $ (12,579) | $ 327 | $ 98 | $ 3,685 | $ (12,154) |
Depreciation and amortization | $ 6,318 | 5,920 | 18,859 | 17,217 | ||||
Deferred taxes | (1,177) | |||||||
Inventory decrease | 3,793 | 3,798 | ||||||
Prepaid expenses and prepaid income taxes decrease (increase) | (86) | (72) | ||||||
Net cash provided by operating activities | 27,932 | 21,285 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of rental equipment, property and other equipment | (11,964) | (54,077) | ||||||
Net cash used in investing activities | (11,814) | (54,247) | ||||||
Net change in cash and cash equivalents | $ 15,967 | (33,146) | ||||||
As Reported | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | (12,232) | 573 | 357 | (11,302) | ||||
Depreciation and amortization | 5,867 | 17,108 | ||||||
Deferred taxes | (929) | |||||||
Inventory decrease | 1,861 | |||||||
Prepaid expenses and prepaid income taxes decrease (increase) | 198 | |||||||
Net cash provided by operating activities | 20,609 | |||||||
Cash flows from investing activities: | ||||||||
Purchase of rental equipment, property and other equipment | (53,401) | |||||||
Net cash used in investing activities | (53,571) | |||||||
Net change in cash and cash equivalents | (33,146) | |||||||
Revisions | Revision of Prior Period Financial Statements | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | (347) | $ (246) | $ (259) | (852) | ||||
Depreciation and amortization | $ 53 | 109 | ||||||
Deferred taxes | (248) | |||||||
Inventory decrease | 1,937 | |||||||
Prepaid expenses and prepaid income taxes decrease (increase) | (270) | |||||||
Net cash provided by operating activities | 676 | |||||||
Cash flows from investing activities: | ||||||||
Purchase of rental equipment, property and other equipment | (676) | |||||||
Net cash used in investing activities | (676) | |||||||
Net change in cash and cash equivalents | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Allowance for obsolescence | $ 37 | $ 24 |
Raw materials - current | 16,275 | 19,388 |
Work-in-process | 850 | 1,692 |
Inventory - current | 17,125 | 21,080 |
Raw materials - long term (net of allowances of $37 and $24, respectively) | 1,230 | 1,068 |
Inventory - total | $ 18,355 | $ 22,148 |
Federal Income Tax Receivable (
Federal Income Tax Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Federal income tax receivable | $ 11,083 | $ 15,000 | $ 11,083 | $ 0 | |
Deferred tax liability increase due to tax law change | $ 10,100 | 10,103 | $ 0 | ||
Income tax received refunds | $ 3,900 | ||||
Income tax benefit from CARES Act | $ 4,900 |
Rental Equipment (Schedule of R
Rental Equipment (Schedule of Rental Equipment, Property and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (13,327) | $ (12,847) |
Rental Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 390,036 | 380,090 |
Accumulated depreciation | (179,160) | (162,348) |
Rental equipment, net of accumulated depreciation | 210,876 | 217,742 |
Rental Equipment | Compressor units | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 385,920 | 370,961 |
Rental Equipment | Work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,116 | $ 9,129 |
Rental Equipment (Narrative) (D
Rental Equipment (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)compressor | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Retirement of rental equipment | $ 0 | $ 1,512,000 | $ 0 | $ 1,512,000 |
Compressor units | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of units retired | compressor | 327 | |||
Compressor units | Loss On Retirement of Rental Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Retirement of rental equipment | $ 0 | $ 1,500,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Right of use assets-operating leases | $ 509 | $ 604 | |
Operating lease, liability | 509 | ||
Lease costs | $ 419 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right of use assets-operating leases | $ 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 | 9 years |
Leases (Balance Sheet Impact) (
Leases (Balance Sheet Impact) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right of use assets-operating leases | $ 509 | $ 604 |
Current operating leases | 203 | 189 |
Long-term operating leases | 306 | $ 415 |
Total lease liabilities | $ 509 | |
Weighted average remaining lease term in years | 3 years 1 month 6 days | |
Implicit Rate | 3.10% |
Leases (Cash Flow Impact) (Deta
Leases (Cash Flow Impact) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities, operating lease cost | $ 419 |
Short-term lease cost | 275 |
Operating lease, cost | $ 144 |
Leases (Future Maturities of Le
Leases (Future Maturities of Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2020 (excluding the nine months ended September 30, 2020) | $ 54 |
2021 | 198 |
2022 | 65 |
2023 | 38 |
2024 | 38 |
Thereafter | 168 |
Total lease payments | 561 |
Less: Imputed interest | 52 |
Operating lease, liability | $ 509 |
Credit Facility (Details)
Credit Facility (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | ||
Weighted average interest rate | 2.11% | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Aggregate credit agreement commitment | $ 30,000,000 | |
Potential increase in borrowing capacity | 20,000,000 | |
Potential maximum borrowing capacity | $ 50,000,000 | |
Borrowing base, component, % of eligible accounts receivable | 80.00% | |
Borrowing base, component, % of eligible inventory | 50.00% | |
Borrowing base, allowable share of total commitment amount attributable to inventory component | 50.00% | |
Borrowing base, component, % of eligible equipment inventory | 75.00% | |
Borrowing base amount available | $ 29,500,000 | |
Default trigger, certain defaults of other company indebtedness, amount | 50,000 | |
Default trigger, rendering of certain judgments, amount | 150,000 | |
Line of credit balance | $ 417,000 | $ 417,000 |
Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Minimum commitment coverage ratio allowed | 2 | |
Revolving Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Maximum leverage ratio allowed | 2.50 | |
Revolving Credit Facility | LIBOR Rate | ||
Line of Credit Facility [Line Items] | ||
Reference rate, number of allowable LIBOR-based borrowings outstanding | loan | 3 | |
Variable rate, applicable margin | 1.25% | |
Revolving Credit Facility | CB Floating Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate, applicable margin | 1.50% |
CARES Act Loan (Details)
CARES Act Loan (Details) $ in Millions | Apr. 10, 2020USD ($) |
Paycheck Protection Program Loan | Unsecured Debt | |
Debt Instrument [Line Items] | |
Proceeds from entering into loan | $ 4.6 |
Deferred Compensation Plan (Det
Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |||
Participant's maximum compensation deferral percentage | 90.00% | ||
Company owned life insurance | $ 1,700 | $ 1,500 | |
Gain (loss) on company owned life insurance | (19) | $ 145 | |
Deferred compensation obligation | $ 1,900 | $ 1,700 | |
Deferred restricted stock shares (in shares) | 47,299 | 94,148 | |
Deferred compensation arrangement with individual, shares issued (in shares) | 144,401 | 80,604 | |
Deferred compensation arrangement, fair value of shares issued | $ 2,200 | $ 1,700 |
Stock-Based and Other Long-Te_3
Stock-Based and Other Long-Term Incentive Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Number ofStock Options | ||
Outstanding, beginning of period (in shares) | 208,334 | |
Granted (in shares) | 5,000 | |
Canceled/Forfeited (in shares) | (7,000) | |
Expired (in shares) | (40,000) | |
Outstanding, end of period (in shares) | 166,334 | 208,334 |
Number of stock options, exercisable (in shares) | 161,334 | |
Weighted AverageExercise Price | ||
Outstanding, beginning of period (in USD per share) | $ 23.67 | |
Granted (in USD per share) | 4.91 | |
Canceled/Forfeited (in USD per share) | 31.12 | |
Expired (in USD per share) | 19.11 | |
Outstanding, end of period (in USD per share) | 23.89 | $ 23.67 |
Weighted average exercise price, exercisable (in USD per share) | $ 24.48 | |
WeightedAverageRemainingContractual Life (years) | ||
Outstanding | 3 years 10 months 28 days | 3 years 7 months 28 days |
Granted | 9 years 6 months 21 days | |
Exercisable | 3 years 8 months 26 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning of period | $ 0 | |
Granted | 18 | |
Exercised | 0 | |
Outstanding, end of period | 18 | $ 0 |
Exercisable | $ 0 |
Stock-Based and Other Long-Te_4
Stock-Based and Other Long-Term Incentive Compensation (Stock Options Outstanding) (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares (in shares) | shares | 166,334 |
Options outstanding, weighted average remaining contractual life (years) | 3 years 10 months 28 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 23.89 |
Options exercisable, shares (in shares) | shares | 161,334 |
Options exercisable, weighted average exercise price (in USD per share) | $ 24.48 |
$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 USD per share) | 0.01 |
Range of exercise prices, upper limit (in USD per share) | $ 15.70 |
Options outstanding, shares (in shares) | shares | 13,500 |
Options outstanding, weighted average remaining contractual life (years) | 4 years 4 months 13 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 11.19 |
Options exercisable, shares (in shares) | shares | 8,500 |
Options exercisable, weighted average exercise price (in USD 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 USD per share) | 15.71 |
Range of exercise prices, upper limit (in USD per share) | $ 17.81 |
Options outstanding, shares (in shares) | shares | 16,000 |
Options outstanding, weighted average remaining contractual life (years) | 3 months 25 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 17.81 |
Options exercisable, shares (in shares) | shares | 16,000 |
Options exercisable, weighted average exercise price (in USD per share) | $ 17.81 |
$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 USD per share) | 17.82 |
Range of exercise prices, upper limit (in USD per share) | $ 20.48 |
Options outstanding, shares (in shares) | shares | 20,500 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 5 months 19 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 18.75 |
Options exercisable, shares (in shares) | shares | 20,500 |
Options exercisable, weighted average exercise price (in USD per share) | $ 18.75 |
$20.49-30.41 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit (in USD per share) | 20.49 |
Range of exercise prices, upper limit (in USD per share) | $ 30.41 |
Options outstanding, shares (in shares) | shares | 116,334 |
Options outstanding, weighted average remaining contractual life (years) | 4 years 7 months 9 days |
Options outstanding, weighted average exercise price (in USD per share) | $ 27.11 |
Options exercisable, shares (in shares) | shares | 116,334 |
Options exercisable, weighted average exercise price (in USD per share) | $ 27.11 |
Stock-Based and Other Long-Te_5
Stock-Based and Other Long-Term Incentive Compensation (Summary of Unvested Stock Options) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Shares | ||
Unvested, beginning of period (in shares) | 10,433 | |
Granted (in shares) | 5,000 | |
Vested (in shares) | (10,433) | |
Unvested, end of period (in shares) | 5,000 | |
Weighted AverageGrant Date Fair Value Per Share | ||
Unvested, weighted average grant date fair value, beginning of period (in USD per share) | $ 11.93 | |
Unvested, weighted average grant date fair value, granted (in USD per share) | 2.07 | |
Vested, weighted average grant date fair value (in USD per share) | 11.93 | |
Unvested, weighted average grant date fair value, end of period (in USD per share) | $ 2.07 | |
Stock Options | ||
Weighted AverageGrant Date Fair Value Per Share | ||
Unrecognized compensation cost related to unvested options | $ 8,000 | |
Share-based compensation expense | $ 18,000 | $ 92,000 |
Stock-Based and Other Long-Te_6
Stock-Based and Other Long-Term Incentive Compensation (Restricted Stock) (Details) - Restricted Stock - USD ($) $ in Millions | Apr. 28, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.7 | ||
Total unrecognized compensation expense | $ 2.3 | ||
Unrecognized compensation cost related to awards, vesting period | 2 years 6 months | ||
Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 94,133 | ||
Award vesting period | 3 years | ||
Chief Financial Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 10,000 | ||
Vice President of Technical Services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 4,432 | ||
Award vesting period | 1 year |
Stock-Based and Other Long-Te_7
Stock-Based and Other Long-Term Incentive Compensation (Other Long-Term Incentive Compensation) (Details) | Apr. 28, 2020USD ($)independent_director | Sep. 30, 2020USD ($)independent_director |
Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of independent directors | independent_director | 4 | |
Other Long-Term Incentive Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 1,061,820 | |
Award vesting period | 3 years | |
Share-based compensation expense | $ 252,000 | |
Total unrecognized compensation expense | $ 960,000 | |
Share-based payment arrangement, nonvested award, recognized, period for recognition | 2 years 6 months | |
Other Long-Term Incentive Compensation | Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 50,000 | |
Award vesting period | 1 year | |
Number of independent directors | independent_director | 4 |
Impairment of Goodwill (Narrati
Impairment of Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of goodwill | $ 0 | $ 10,039 | $ 0 | $ 10,039 |
Earnings per Share (Basic and D
Earnings per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net income (loss) | $ (562) | $ 165 | $ 4,082 | $ (12,579) | $ 327 | $ 98 | $ 3,685 | $ (12,154) |
Denominator for (loss) earnings per basic common share: | ||||||||
Weighted average common shares outstanding (in shares) | 13,248,000 | 13,137,000 | 13,214,000 | 13,112,000 | ||||
Denominator for (loss) earnings per diluted common share: | ||||||||
Dilutive effect of stock options and restricted stock (in shares) | 0 | 0 | 257,000 | 0 | ||||
Diluted weighted average shares (in shares) | 13,248,000 | 13,137,000 | 13,471,000 | 13,112,000 | ||||
Earnings per common share: | ||||||||
Basic (in USD per share) | $ (0.04) | $ (0.96) | $ 0.28 | $ (0.93) | ||||
Diluted (in USD per share) | $ (0.04) | $ (0.96) | $ 0.27 | $ (0.93) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Number of shares not included in the computation of dilutive income (loss) per share (in shares) | 171,900 | |||||||
Antidilutive Effect | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Exercise price of shares not included in the computation of dilutive income (loss) per share, lower limit (in USD per share) | $ 14.89 | |||||||
Exercise price of shares not included in the computation of dilutive income (loss) per share, upper limit (in USD per share) | $ 33.36 |
Related Party (Details)
Related Party (Details) - Corporate Joint Venture - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Purchases from joint venture | $ 1 | |
Genis Holdings, LLC | N-G, LLC | ||
Related Party Transaction [Line Items] | ||
Percent ownership | 50.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Oct. 15, 2020 | Apr. 28, 2020 | Oct. 23, 2020 |
Other Long-Term Incentive Compensation | |||
Subsequent Event [Line Items] | |||
Granted | $ 1,061,820 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, authorized amount | $ 10,000,000 | ||
Subsequent Event | Ms. Beyer | Restricted Stock | |||
Subsequent Event [Line Items] | |||
Granted (in shares) | 1,324 | ||
Subsequent Event | Ms. Beyer | Other Long-Term Incentive Compensation | |||
Subsequent Event [Line Items] | |||
Granted | $ 25,000 |