Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NRC GROUP HOLDINGS CORP. | |
Entity Central Index Key | 0001703038 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 38,050,385 | |
Entity File Number | 001-38119 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 22,615 | $ 18,365 |
Receivables: | ||
Trade, net of allowance for doubtful accounts of $2.5 million and $0.6 million, respectively | 100,345 | 102,709 |
Other | 1,227 | 1,112 |
Inventory | 7,329 | 7,257 |
Prepaid expenses and other current assets | 5,438 | 4,692 |
Total current assets | 136,954 | 134,135 |
Property and equipment, net | 156,534 | 122,565 |
Goodwill | 52,864 | 51,417 |
Intangible assets, net of accumulated amortization of $38.5 million and $34.5 million, respectively | 70,833 | 64,614 |
Other assets | 4,081 | 3,396 |
Total assets | 421,266 | 376,127 |
Current liabilities | ||
Accounts payable | 34,373 | 36,171 |
Accrued expenses | 11,293 | 10,644 |
Accrued wages and benefits | 5,659 | 4,858 |
Contingent consideration | 6,509 | 2,470 |
Deferred revenue | 3,704 | 1,199 |
Other current liabilities | 3,325 | |
Current portion of term loans | 3,431 | 3,431 |
Current portion of equipment loan | 728 | 737 |
Borrowings outstanding under revolving credit agreements | 43,000 | 10,000 |
Accrued dividend on Series A convertible preferred stock | 1,838 | 1,511 |
Total current liabilities | 113,860 | 71,021 |
Contingent consideration, net of current portion | 4,886 | 3,846 |
Term loans, net of current portion and deferred financing costs | 329,145 | 330,104 |
Equipment loan, net of current portion | 979 | 78 |
Asset retirement obligation | 1,346 | 1,379 |
Other long-term liabilities | 13,445 | 1,243 |
Total liabilities | 463,661 | 407,671 |
Shareholders' Equity (Deficit) | ||
Series A Convertible Preferred Stock, par value $0.0001; 5,000,000 shares authorized; 1,050,000 issued with a liquidation preference of $105,000 as of June 30, 2019 and December 31, 2018. | 102,967 | 102,967 |
Common stock, par value $0.0001; 200,000,000 shares authorized; 38,050,385 and 36,902,544 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively. | 4 | 4 |
Additional paid in capital | 20,677 | 13,084 |
Accumulated deficit | (159,637) | (141,062) |
Accumulated other comprehensive loss | (6,406) | (6,537) |
Total shareholders' equity (deficit) | (42,395) | (31,544) |
Total liabilities and shareholders' equity | $ 421,266 | $ 376,127 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade, net of allowance for doubtful accounts | $ 2,500 | $ 600 |
Intangible assets, net of accumulated amortization | $ 38,500 | $ 34,500 |
Series A convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Series A convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A convertible preferred stock, shares issued | 1,050,000 | 1,050,000 |
Liquidation preference | $ 105,000 | $ 105,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 38,050,385 | 38,902,544 |
Common stock, shares outstanding | 38,050,385 | 36,902,544 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Operating revenue | $ 121,841 | $ 81,692 | $ 222,335 | $ 152,924 |
Costs and expenses | ||||
Operating expenses, including cost of revenue (exclusive of depreciation and amortization) | 83,678 | 54,482 | 154,933 | 102,848 |
General and administrative expenses | 17,188 | 12,740 | 34,081 | 23,135 |
Depreciation and amortization | 9,678 | 5,325 | 18,690 | 11,784 |
Management fees | 357 | 800 | ||
Acquisition expenses | 10,715 | 2,064 | 11,162 | 3,286 |
Share-based compensation | 1,268 | 1,268 | ||
Change in fair value of contingent consideration | 2,026 | 4,077 | ||
Other expense, net | 413 | 1,443 | 1,813 | 2,340 |
Total costs and expenses | 124,966 | 76,411 | 226,024 | 144,193 |
Operating (loss) income | (3,125) | 5,281 | (3,689) | 8,731 |
Other income (expenses) | ||||
Interest expense | (7,730) | (3,963) | (14,339) | (7,633) |
Foreign currency transaction gain (loss) | (40) | 78 | 51 | 41 |
Loss on debt extinguishment | (2,720) | (2,720) | ||
Other income (expense), net | (87) | (23) | 89 | (8) |
Total other expenses, net | (7,857) | (6,628) | (14,199) | (10,320) |
Loss before income taxes | (10,982) | (1,347) | (17,888) | (1,589) |
Income tax (benefit) expense | (867) | (1,139) | 687 | (1,020) |
Net loss | (10,115) | (208) | (18,575) | (569) |
Foreign currency translation (loss) income | (315) | (1,245) | 131 | (540) |
Total other comprehensive (loss) income | (315) | (1,245) | 131 | (540) |
Comprehensive loss | (10,430) | (1,453) | (18,444) | (1,109) |
Net loss | (10,115) | (208) | (18,575) | (569) |
Less dividend on Series A convertible preferred stock | (1,837) | (3,675) | ||
Net loss attributable to common shareholders | $ (11,952) | $ (208) | $ (22,250) | $ (569) |
Net loss per share, basic and diluted | $ (0.32) | $ (0.01) | $ (0.6) | $ (0.03) |
Weighted average common shares outstanding, basic and diluted | 37,545,840 | 21,873,680 | 37,225,969 | 21,873,680 |
Dividends declared per Series A convertible preferred share | $ 1.75 | $ 3.5 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2017 | $ 2 | $ 142,205 | $ (93,805) | $ (5,303) | $ 43,099 | |
Balance, Shares at Dec. 31, 2017 | 21,873,680 | |||||
Net loss | (569) | (569) | ||||
Currency translation income | (540) | (540) | ||||
Share based compensation | ||||||
Capital Contributions | 22,817 | 22,817 | ||||
Dividend distribution to JFL | (86,543) | (86,543) | ||||
Balance at Jun. 30, 2018 | $ 2 | 78,479 | (94,374) | (5,843) | (21,736) | |
Balance, shares at Jun. 30, 2018 | 21,873,680 | |||||
Balance at Mar. 31, 2018 | $ 2 | 142,205 | (94,166) | (4,598) | 43,443 | |
Balance, Shares at Mar. 31, 2018 | 21,873,680 | |||||
Net loss | (208) | (208) | ||||
Currency translation income | (1,245) | (1,245) | ||||
Share based compensation | ||||||
Capital Contributions | 22,817 | 22,817 | ||||
Dividend distribution to JFL | (86,543) | (86,543) | ||||
Balance at Jun. 30, 2018 | $ 2 | 78,479 | (94,374) | (5,843) | (21,736) | |
Balance, shares at Jun. 30, 2018 | 21,873,680 | |||||
Balance at Dec. 31, 2018 | $ 102,967 | $ 4 | 13,084 | (141,062) | (6,537) | (31,544) |
Balance, Shares at Dec. 31, 2018 | 1,050,000 | 36,902,544 | ||||
Net loss | (18,575) | (18,575) | ||||
Currency translation income | 131 | 131 | ||||
Series A convertible preferred stock dividend | (3,675) | (3,675) | ||||
Share based compensation | 1,268 | 1,268 | ||||
Issuance of common stock to JFL for OIT fee | 10,000 | 10,000 | ||||
Issuance of common stock to JFL for OIT fee, shares | 1,147,841 | |||||
Balance at Jun. 30, 2019 | $ 102,967 | $ 4 | 20,677 | (159,637) | (6,406) | (42,395) |
Balance, shares at Jun. 30, 2019 | 1,050,000 | 38,050,385 | ||||
Balance at Mar. 31, 2019 | $ 102,967 | $ 4 | 11,246 | (149,522) | (6,091) | (41,396) |
Balance, Shares at Mar. 31, 2019 | 1,050,000 | 36,902,544 | ||||
Net loss | (10,115) | (10,115) | ||||
Currency translation income | (315) | (315) | ||||
Series A convertible preferred stock dividend | (1,837) | (1,837) | ||||
Share based compensation | 1,268 | 1,268 | ||||
Issuance of common stock to JFL for OIT fee | 10,000 | 10,000 | ||||
Issuance of common stock to JFL for OIT fee, shares | 1,147,841 | |||||
Balance at Jun. 30, 2019 | $ 102,967 | $ 4 | $ 20,677 | $ (159,637) | $ (6,406) | $ (42,395) |
Balance, shares at Jun. 30, 2019 | 1,050,000 | 38,050,385 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (18,575) | $ (569) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation of property and equipment | 14,807 | 9,017 |
Amortization of intangible assets | 3,883 | 2,767 |
Accretion of asset retirement obligation | 54 | 26 |
Amortization of deferred financing costs | 855 | 835 |
Share-based compensation expense | 1,268 | |
Bad debt expense | 2,212 | 271 |
Change in fair value of contingent consideration | 4,077 | |
Deferred income tax provision | 23 | |
Realized gain from equipment sales or retirements | (381) | |
Loss on extinguishment of debt | 2,720 | |
Non-cash OIT acquisition related expense | 10,000 | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Trade and other receivables | 147 | 5,312 |
Inventories | (72) | (89) |
Prepaid expenses | (770) | (728) |
Other assets | (759) | (8) |
Accounts payable and accrued expenses | (9,016) | (11,068) |
Accrued wages and benefits | 801 | (539) |
Deferred revenue | 2,505 | 3,125 |
Other current liabilities including current income taxes | (1,576) | (3,236) |
Other liabilities | (1,778) | (1,408) |
Payment of contingent consideration in excess of acquisition date fair value | (1,837) | |
Net cash provided by operating activities | 5,845 | 6,451 |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (5,805) | (28,028) |
Capital expenditures | (21,549) | (7,386) |
Net cash used in investing activities: | (27,354) | (35,414) |
Cash flows from financing activities: | ||
Borrowings from term loans | 308,000 | |
Principal payments on term loans | (1,717) | (197,157) |
Borrowings from revolving credit facilities | 33,000 | 5,283 |
Repayments of borrowing from revolving credit facilities | (13,494) | |
Borrowings from equipment loans | 1,695 | |
Principal payments on equipment loans | (804) | (1,056) |
Payments on capital lease obligations | (1,859) | |
Payments of debt issuance costs | (9,660) | |
Dividend distribution to JFL | (86,543) | |
Capital contributions | 22,817 | |
Cash dividend paid | (3,350) | |
Payment of contingent consideration | (1,184) | |
Net cash provided by financing activities: | 25,781 | 28,190 |
Effects of foreign exchange rates on cash and cash equivalents | (22) | (540) |
Net increase (decrease) in cash and cash equivalents | 4,250 | (1,313) |
Cash and cash equivalents, beginning of period | 18,365 | 10,570 |
Cash and cash equivalents, end of period | 22,615 | 9,257 |
Supplemental Information: | ||
Cash interest paid | 7,583 | 4,936 |
Cash income taxes paid | 609 | 345 |
Noncash investing and financing activities: | ||
Equipment financed under capital lease obligations | 18,060 | 1,032 |
Asset retirement obligation | 651 | |
Transfer from construction in progress to landfill permit intangible asset | 478 | |
Unpaid property and equipment | 7,689 | |
Issuance of common stock to JFL for OIT fee | 10,000 | |
Accrued and unpaid Series A convertible preferred stock dividend | $ 1,837 |
Description of Organization and
Description of Organization and Business Operations | 6 Months Ended |
Jun. 30, 2019 | |
Nature of Business [Abstract] | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1 - DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS NRC Group Holdings Corp. ("NRCG," and together with its subsidiaries, the "Company") was originally formed on January 3, 2017 as a special purpose acquisition company ("SPAC") under the name Hennessy Capital Acquisition Corp. III ("Hennessy Capital"). On October 17, 2018, Hennessy Capital consummated the acquisition (the "Business Combination") of all of the issued and outstanding membership interests of NRC Group Holdings, LLC ("NRC Group") from JFL-NRC-SES Partners, LLC ("JFL Partners"). Upon consummation of the Business Combination, Hennessy Capital changed its name to NRC Group Holdings Corp. NRCG is a global provider of a wide range of environmental, compliance and waste management services. The Company's broad range of capabilities and global reach enable it to meet the critical, and often non-discretionary, needs of more than 5,000 customers across diverse end markets to ensure compliance with environmental, health and safety laws and regulations around the world. NRCG operates in four reportable business segments: (1) Domestic Environmental Services, (2) Sprint, (3) Domestic Standby Services and (4) International Services. The Domestic Environmental Services segment provides environmental and industrial services across the United States. The Sprint segment provides energy-related services and waste management and disposal services predominately to upstream energy customers concentrated in the Eagle Ford and Permian Basin regions of the Texas Shale Oil Fields ("Eagle Ford and Permian Basin"). The Domestic Standby Services segment provides commercial standby oil spill compliance and emergency response services in the United States and across North America. The International Services segment provides international standby oil spill, emergency response, specialty industrial and environmental solutions in seven countries. Through its domestic and international wholly-owned subsidiaries, the Company primarily provides these services to oil and gas, chemical, industrial and marine transportation clients in the United States and abroad. NRC Group On January 6, 2012, JFL-NRC Holdings, LLC ("NRC Holdings") was formed under Delaware law by its sole member, JFL-NRC Partners, LLC ("NRC Partners"), for the purpose of acquiring National Response Corporation and its affiliated businesses, including, among others, NRC Environmental Services, SEACOR Response and SEACOR Environmental Products (collectively, "NRC") from affiliates of SEACOR Holdings, Inc. ("SEACOR"). On March 16, 2012, NRC Holdings completed the acquisition (the "NRC Acquisition") of all of the issued and outstanding stock of NRC from SEACOR. Prior to March 16, 2012, NRC Holdings did not engage in any business except for activities related to its formation. On May 5, 2015, SES Holdco, LLC ("SES Holdco"), a Texas limited liability company, was formed under Delaware law by its sole member, JFL-SES Partners, LLC ("SES Partners"), for the purpose of acquiring Sprint Energy Services, LLC ("SES"), a Texas limited liability company. On May 5, 2015, SES Holdco completed the acquisition (the "SES Acquisition") of all the issued and outstanding stock of SES. Sprint Karnes County Disposal LLC ("SKCD"), a Texas limited liability company, is a wholly-owned subsidiary of SES. SKCD received an oilfield waste disposal permit from the Railroad Commission of Texas ("RRC") on December 31, 2015. NRC Partners and SES Partners are ultimately majority-owned by funds advised by J.F. Lehman and Company ("JFL"), a leading middle-market private equity firm focused on the defense, aerospace, maritime, government and environmental sectors. In June 2018, NRC Partners and SES Partners formed JFL Partners, a Delaware limited liability company, and contributed their respective equity interests in NRC Holdings and SES Holdco to JFL Partners. JFL Partners formed NRC Group and contributed all of its equity interest in NRC Holdings and SES Holdco to NRC Group. On June 11, 2018, NRC Group made a dividend payment of approximately $86.5 million to J.F. Lehman & Company, LLC ("JFLCo") (the "Dividend Recapitalization"). Following the Dividend Recapitalization, NRC Group became the holding company for NRC Holdings and SES Holdco. US Ecology Merger On June 23, 2019, NRCG entered into an Agreement and Plan of Merger (the "Merger Agreement") with US Ecology, Inc., a Delaware corporation ("US Ecology"), US Ecology Parent, Inc., a Delaware corporation and wholly-owned subsidiary of US Ecology ("Holdco"), Rooster Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Holdco ("Rooster Merger Sub"), and ECOL Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Holdco ("ECOL Merger Sub"). The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, ECOL Merger Sub will merge with and into US Ecology, with US Ecology continuing as the surviving company and as a wholly-owned subsidiary of Holdco (the "Parent Merger"). Substantially concurrently therewith, Rooster Merger Sub will merge with and into NRCG, with NRCG continuing as the surviving company and as a wholly-owned subsidiary of Holdco (the "Rooster Merger," and, together with the Parent Merger, the "Mergers"). The parties to the Merger Agreement intend that (1) each of the Mergers will qualify as a "reorganization" within the meaning of Section 368(a) of the Internal Revenue Code of 1986 (the "Code") or, alternatively, (2) the Mergers together will be treated as an "exchange" described in Section 351 of the Code. In the Rooster Merger, each share of common stock, par value $0.0001 per share, of NRCG ("Company Common Stock") issued and outstanding immediately prior to the applicable Effective Time (other than cancelled shares) will be converted into the right to receive, and become exchangeable for: (1) 0.196 of a share (the "NRCG Exchange Ratio") of common stock, par value $0.01 per share, of Holdco ("Holdco Common Stock"); (2)any cash in lieu of fractional shares of Holdco Common Stock payable pursuant to the Merger Agreement; and (3) any dividends or other distributions to which the holder thereof becomes entitled to upon the surrender of such shares of Company Common Stock in accordance with the Merger Agreement. Outstanding shares of NRCG's equity awards will be converted into equity awards of Holdco pursuant to the mechanics set forth in the Merger Agreement. In the Rooster Merger, each share of Company Common Stock that is held by NRCG as treasury stock or that is owned by NRCG, Rooster Merger Sub or any other subsidiary of US Ecology or NRCG immediately prior to the applicable Effective Time will cease to be outstanding and will automatically be cancelled and will cease to exist, without any conversion thereof, and no consideration will be delivered in exchange therefor. In addition, in the Rooster Merger, each share of 7.00% Series A Convertible Cumulative Preferred Stock, par value $0.0001 per share, of NRCG (the "Series A Preferred Stock") will be converted into, and become exchangeable for, (1) a whole number of shares of Holdco Common Stock equal to the product of (a) the number of shares of Company Common Stock that such share of Series A Preferred Stock could be converted into at the applicable Effective Time (including Fundamental Change Additional Shares and Accumulated Dividends (each, as defined in the Certificate of Designations, Preferences, Rights and Limitations of NRCG Series A Preferred Stock, dated as of October 17, 2018 and corrected on October 23, 2018 (the "Series A Certificate of Designations"), establishing the rights of the NRCG Series A Preferred Stock)) multiplied by (b) the NRCG Exchange Ratio, (2) any cash in lieu of fractional shares of Holdco Common Stock payable pursuant to the Merger Agreement and (3) any dividends or other distributions to which the holder thereof becomes entitled to upon the surrender of such shares of NRCG Series A Preferred Stock in accordance with the Merger Agreement. At the closing of the Rooster Merger, in respect of each outstanding warrant to purchase Company Common Stock (each, a "NRCG Warrant") issued pursuant to that certain Warrant Agreement, dated as of June 22, 2017, between Continental Stock Transfer & Trust Company and NRCG, Holdco will issue a replacement warrant (each, a "Replacement Warrant") to each holder providing that such Replacement Warrant will be exercisable for a number of shares of Holdco Common Stock equal to the product (rounded to the nearest whole number) of (1) the number of shares of Company Common Stock that would have been issuable upon the exercise of the NRCG Warrant immediately prior to the effective time of the Rooster Merger and (2) the NRCG Exchange Ratio, at an exercise price equal to the quotient obtained by dividing (a) the pre-Rooster Merger exercise price ($11.50 per share) by (b) the NRCG Exchange Ratio. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. They may not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2018, which were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (the "SEC") on March 25, 2019 (the "2018 Annual Report"). The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. Certain prior period financial information has been recast to reflect the current year's presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the Company's consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable at the time under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant Accounting Policies There have been no material changes in the Company's significant accounting policies to those previously disclosed in the 2018 Annual Report. Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value . ● Level 1 - uses quoted prices in active markets for identical assets or liabilities. ● Level 2 - uses observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. The Company's only financial instruments carried at fair value, with changes in fair value flowing through current earnings, consist of contingent consideration liabilities recorded in conjunction with business combinations, as follows (in thousands): Fair Value Measurement at Balance as of Quoted Significant Other Significant Contingent consideration - current $ 6,509 $ - $ - $ 6,509 Contingent consideration - long-term 4,886 - - 4,886 Total liabilities measured at fair value $ 11,395 $ - $ - $ 11,395 Balance as of Quoted Significant Other Significant Contingent consideration - current $ 2,470 $ - $ - $ 2,470 Contingent consideration - long-term 3,846 - - 3,846 Total liabilities measured at fair value $ 6,316 $ - $ - $ 6,316 There were no transfers made among the three levels in the fair value hierarchy for the three and six months ended June 30, 2019 and 2018. The following table presents additional information about Level 3 liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in Level 3 liabilities measured at fair value for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Contingent consideration - beginning of period 8,367 4,639 $ 6,316 $ 4,132 Acquisition of Clean Line (March 28, 2018) - - - 507 Acquisition of OIT (April 26, 2019) 4,023 - 4,023 - Change in fair value of contingent consideration (recognized in earnings) 2,026 - 4,077 - Contingent consideration paid (3,021 ) - (3,021 ) - Contingent consideration - end of period $ 11,395 $ 4,639 $ 11,395 $ 4,639 The fair value of the Company's contingent consideration liabilities recorded as part of the acquisitions of Enpro Holdings Group ("Enpro") in April 2016, Clean Line Waste Water Solutions Limited ("Clean Line") in March 2018, Quail Run Services, LLC ("Quail Run") in October 2018 and OIT Inc. ("OIT") in April 2019, has been classified within Level 3 in the fair value hierarchy. The contingent consideration represents the estimated fair value of future payments due to the sellers of Enpro, Clean Line, Quail Run and OIT based on each company's achievement of annual earnings targets in certain years and other events considered in certain transaction documents. The initial fair values of the contingent consideration were calculated through the use of either Monte Carlo simulation or modified Black-Scholes analyses based on earnings projections for the respective earn-out periods, corresponding earnings thresholds, and approximate timing of payments as outlined in the purchase agreements. The analyses utilized the following assumptions: (i) expected term; (ii) risk-adjusted net sales or earnings; (iii) risk-free interest rate; and (iv) expected volatility of earnings. Estimated payments, as determined through the respective models, were further discounted by a credit spread assumption to account for credit risk. The contingent consideration is adjusted to fair value each period, and any increase or decrease is recorded in operating income (loss). The fair value of the contingent consideration may be impacted by certain unobservable inputs, most significantly with regard to discount rates, expected volatility and historical and projected performance. Significant changes to these inputs in isolation could result in a significantly different fair value measurement. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of the Company's term loans and revolving credit facilities, including the current portion, approximate fair value as the terms and conditions of these loans are consistent with comparable market debt issuances. The carrying value of the equipment loans approximate fair value as the underlying interest rates approximate current market rates for all periods presented. The Company measures certain assets at fair value on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include goodwill and other intangible assets. See Note 5. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Trade Receivables and Allowance for Doubtful Accounts Customers are domestic and international shippers, major oil companies, independent exploration and production companies, pipeline and transportation companies, power generating operators, industrial companies, airports and state and local government agencies. All customers are granted credit on a short-term basis and related credit risks are considered minimal. The Company routinely reviews its trade receivables and makes provisions for probable doubtful accounts based on the credit worthiness of the parties involved, historical collection information and economic conditions. However, those provisions are estimates and actual results could differ from those estimates and those differences may be material. Trade receivables that are deemed uncollectible are removed from accounts receivable and from the allowance for doubtful accounts when collection efforts have been exhausted. The Company records allowances for doubtful accounts receivable based upon expected collectability. The reserve is generally established based upon an analysis of its aged receivables. Additionally, if necessary, a specific reserve for individual accounts is recorded when the Company becomes aware of a customer's inability to meet its financial obligations, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. The Company also regularly reviews the allowance by considering factors such as historical collections experience, credit quality, age of the accounts receivable balance and current economic conditions that may affect a customer's ability to pay. If actual bad debts differ from the reserves calculated, the Company records an adjustment to bad debt expense in the period in which the difference occurs. The following table provides a roll forward of the allowance for doubtful accounts for the six months ended June 30, 2019 and 2018 (in thousands): Six Months Ended 2019 2018 Allowance for doubtful accounts, beginning of period $ 627 $ 895 Bad debt expense 2,212 271 Write-offs, net of recoveries, for bad debt (314 ) (39 ) Allowance for doubtful accounts, end of period $ 2,525 $ 1,127 Asset Retirement Obligations Under the terms of its oilfield waste disposal permit for the SKCD facility, the Company is required to perform certain necessary closure activities as required by the RRC. The SKCD facility consists of multiple active and planned disposal pits within the facility, each of which must be closed once they have reached their permitted capacity for waste. Closure of the disposal pit entails capping the pit with a high-density polyethylene liner and topsoil amongst other environmental remediation procedures. The Company records an asset retirement obligation ("ARO") for disposal pits in the year they become active and begin receiving oilfield waste, the balance of which represents the estimated amount the Company will incur to close each disposal pit in the landfill. The liability is initially recorded at fair value with the corresponding cost capitalized as a component of property and equipment within the Consolidated Balance Sheet. The liability is accreted to its present value each period, and the capitalized costs are amortized on a straight-line basis over the expected period of operation of the respective disposal pit. The Company determines the ARO by calculating the present value of estimated future cash flows related to the liability. Estimating the future ARO requires management to make estimates and judgments regarding timing and existence of a liability, as well as the necessary cost to achieve adequate closure of each pit. Inherent in the fair value calculation are numerous assumptions and judgments including the ultimate costs, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the related asset. In each of December 2017 and April 2018, the Company established an ARO liability and associated asset in the amount of $0.65 million and $0.65 million, respectively. The Company recorded accretion expense of $27,000 and $54,000 during the three and six months ended June 30, 2019, respectively, and made payments of $87,000 during the three and six months ended June 30, 2019. The Company recorded accretion expense of $13,000 and $26,000 during the three and six months ended June 30, 2018, respectively. As of June 30, 2019 and December 31, 2018, the ARO liability was $1.3 million and $1.4 million, respectively. These ARO liabilities relate to the future closure costs associated with Disposal Pit #1 and Disposal Pit #2, respectively. Disposal Pit #1 and Disposal Pit #2 are the Company's only active cells in the SKCD facility. This obligation represents the net present value of the estimated future payout of approximately $1.6 million, which is expected to be incurred by the Company upon closure of Disposal Pit #1 in 2020 and Disposal Pit # 2 in 2020. Recent Accounting Pronouncements Standards implemented In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification Standards to be implemented In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers: (Topic 606) Identifying Performance Obligations and Licensing In February 2016 the FASB issued ASU No. 2016-02 , Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | 3. BUSINESS ACQUISITIONS OIT On March 15, 2019 the Company entered into a definitive asset purchase agreement with OIT, an environmental services provider including services related to thermal treatment of non-hazardous petroleum contaminated soils, absorbent pads and sludges, and the treatment of Per- and Polyfluoroalkyl substances. The transaction closed on April 26, 2019. The Company purchased the assets and business of OIT for an initial adjusted cash purchase price of $5.8 million paid at closing, plus an additional $2.0 million deferred consideration payable in cash, Company Common Stock or a combination of the two, and up to an additional $5.0 million in earn-out payments payable in cash, Company Common Stock or a combination of the two over the next three years based on certain financial milestones. The fair value of this earn out consideration is included in Contingent Consideration, net of current portion in the Consolidated Balance Sheets. Goodwill related to OIT is expected to be deductible for tax purposes. The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed for the OIT acquisition (in thousands): Accounts receivable $ 110 Property, plant and equipment 1,145 Intangible assets 9,623 Goodwill 1,045 Accounts payable and accrued expenses (180 ) Deferred consideration (1,915 ) Contingent consideration (4,023 ) Cash purchase price, net of cash acquired $ 5,805 For the three and six months ended June 30, 2019, the Company recorded $0.5 million in transaction costs related to the acquisition of OIT, which are recorded in Acquisition Expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). Clean Line On March 28, 2018, the Company and Clean Line entered into an agreement for the sale and purchase of the entire issued share capital of Clean Line for approximately $5.0 million, net of cash acquired, and exclusive of deferred consideration and a potential $3.9 million (£3.0 million) in earn out consideration, discussed below. Clean Line is a leading provider of environmental, industrial and emergency response services in the United Kingdom. Clean Line is headquartered in Liverpool, England. Goodwill related to Clean Line is not deductible for tax purposes. The following table summarizes the final allocation of the purchase price to the assets acquired and liabilities assumed for the Clean Line acquisition (in thousands): Trade receivable $ 1,590 Other current assets 188 Property and equipment 1,908 Intangible assets 1,104 Goodwill 1,865 Accounts payable and accrued expenses (1,147 ) Contingent liability (507 ) Cash purchase price, net of cash acquired $ 5,001 For the three and six months ended June 30, 2018, the Company recorded $1.1 million in transaction costs related to the acquisition of Clean Line, which are recorded in Acquisition Expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). SWS Acquisition On May 14, 2018, the Company acquired Progressive Environmental Services, Inc. ("SWS") in exchange for approximately $21.8 million, net of cash acquired. SWS, headquartered in Fort Worth, Texas, expands the Company's environmental services geographic coverage to 20 locations in eight states throughout the Southeast, Gulf Coast and Midwest of the United States. In connection with the SWS acquisition, the Company recognized a $1.2 million deferred tax benefit during the three months ended June 30, 2018. As a result of the Company's acquisition of SWS, a temporary difference between the book fair value and tax basis for the assets acquired was created, resulting in a deferred tax liability and additional goodwill. With the increase in deferred tax liability, the Company reduced the deferred tax asset valuation account and recognized a deferred tax benefit. The following table summarizes the final allocation of the purchase price to the assets acquired and liabilities assumed for the SWS acquisition (in thousands): Accounts receivable $ 12,942 Other current assets 545 Property, plant and equipment 7,037 Deposits 362 Bid bonds 565 Intangible assets 2,879 Goodwill 4,899 Accounts payable and accrued expenses (6,176 ) Deferred tax liability (1,237 ) Cash purchase price, net of cash acquired $ 21,816 For the three and six months ended June 30, 2018, the Company recorded $1.5 million in transaction costs related to the acquisition of SWS, which are recorded in Acquisition Expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Property and equipment, net consists of the following as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, 2019 2018 Vessels and equipment $ 36,353 $ 35,553 Vehicles and trailers 67,712 50,458 Machinery and equipment 113,585 109,961 Office equipment and fixtures 8,752 8,549 Landfill 19,025 18,525 Leasehold improvements 10,115 6,490 Computer systems/license fees 3,796 3,527 Construction in progress 27,298 7,697 286,636 240,760 Less: Accumulated depreciation (130,102 ) (118,195 ) Property and equipment, net $ 156,534 $ 122,565 For the three and six months ended June 30, 2019, the Company recognized depreciation expense of $7.7 million and $14.8 million, respectively. For the three and six months ended June 30, 2018, the Company recognized depreciation expense of $4.1 million and $9.0 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 5. GOODWILL AND INTANGIBLE ASSETS The table below summarizes the Company's finite-lived intangible assets and indefinite-lived trademarks as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 Useful Lives Weighted Intangible Accumulated Net (Years) (Years) Assets Amortization Balance Customer Relationships 8 - 20 9.7 70,896 (21,643 ) $ 49,253 Tradenames/Trademarks 2 - 25 10.8 13,148 (6,994 ) 6,154 Trademarks Indefinite N/A 837 - 837 Permits/License 3 - 10 9.4 23,560 (8,997 ) 14,563 Non-compete Agreements 5 - 6 0.4 856 (830 ) 26 $ 109,297 $ (38,464 ) $ 70,833 December 31, 2018 Useful Lives Weighted Intangible Accumulated Net (Years) (Years) Assets Amortization Balance Customer Relationships 8 - 20 10.1 $ 70,896 $ (18,939 ) $ 51,957 Tradenames/Trademarks 2 - 25 10.7 13,148 (6,378 ) 6,770 Trademarks Indefinite N/A 837 - 837 Permits/License 3 - 10 9.1 13,458 (8,491 ) 4,967 Non-compete Agreements 5 - 6 0.8 856 (773 ) 83 $ 99,195 $ (34,581 ) $ 64,614 The intangible assets are being amortized over their respective original useful lives, which range from 2 to 25 years. The Company recorded approximately $2.0 million and $3.9 million of amortization expense related to the above intangible assets for the three and six months ended June 30, 2019, respectively. The Company recorded approximately $1.2 million and $2.8 million of amortization expense related to the above intangible assets for the three and six months ended June 30, 2018, respectively. There were no impairment charges recorded during the six months ended June 30, 2019 and 2018. The following table shows the remaining amortization expense associated with amortizable intangible assets as of June 30, 2019 (in thousands): Year ended December 31, 2019 (excluding the six months ended June 30, 2019) $ 4,391 Year ended December 31, 2020 8,208 Year ended December 31, 2021 7,782 Year ended December 31, 2022 7,607 Year ended December 31, 2023 7,292 Thereafter 34,716 $ 69,996 The table below summarizes goodwill activity during the six months ended June 30, 2019 (in thousands): Ending balance at December 31, 2018 $ 51,417 Addition- OIT acquisition 1,045 Change in SWS acquisition allocation 402 Ending balance at June 30, 2019 $ 52,864 The table below summarizes goodwill by reportable segment at June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, 2019 2018 Domestic Environmental Services $ 32,014 $ 30,567 International Services 1,865 1,865 Sprint Segment 18,985 18,985 Total Goodwill $ 52,864 $ 51,417 Domestic Environmental Services, International Services and Sprint Segment Goodwill The Company performed a quantitative test of goodwill at year end for the year ended December 31, 2018. The Company evaluated goodwill at the segment level for the International Services segment as it does not have components below the segment level that meet the definition of a reporting unit. Goodwill for the Domestic Environmental Services segment is evaluated at the segment level as the reporting units are economically similar. The Sprint Segment is evaluated at the reporting unit level. The Company estimates the fair value of its reporting units using an income approach based on the present value of expected future cash flows, including terminal value, utilizing a market-based weighted average cost of capital ("WACC") determined separately for each reporting unit. The determination of fair value involves the use of significant estimates and assumptions, including revenue growth rates driven by future commodity prices and volume expectations, operating margins, capital expenditures, working capital requirements, tax rates, terminal growth rates, discount rates and synergistic benefits available to market participants. No events or conditions indicated the carrying value of the Company's reporting units may not be recoverable in the six months ended June 30, 2019, and therefore the Company did not perform an interim period impairment assessment. Company did not record impairment charges related to goodwill in the six months ended June 30, 2019 and 2018. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | 6. LONG-TERM DEBT As of June 30, 2019 and December 31, 2018 short-term and long-term debt consisted of the following (in thousands): June 30, December 31, 2019 2018 Term Loan principal $ 339,657 $ 341,372 Less: Unamortized deferred financing fees (7,081 ) (7,837 ) Less: Current portion (3,431 ) (3,431 ) Term loans, net of current portion and deferred financing costs 329,145 330,104 Revolver (current ) 43,000 10,000 Term loans, net of current portion and deferred financing costs, and Revolver $ 372,145 $ 340,104 NRC US Holding Company, LLC (a wholly owned subsidiary of NRC) and SES (collectively, the "Borrowers"), NRC Group, as parent, and the other guarantors party thereto entered into a credit facility (the "Credit Facility") on June 11, 2018, which included a $308.0 million term loan (the "Original Term Loan") and a $40.0 million revolving credit facility (the "Revolver"). The Borrowers and the other guarantors (including NRC Group) entered into a joinder agreement (the "Joinder Agreement") on October 2, 2018, pursuant to which the Borrowers increased the Original Term Loan in the amount of $35.0 million (the "Incremental Term Loan," and together with the Original Term Loan, the "Term Loan") and the amount available under the Revolver was reduced by $5 million to $35.0 million. On March 15 and May 10, 2019 the Company entered into incremental revolving credit commitments of $10.0 million and $15.0 million, respectively, under the Credit Facility, bringing its total revolving credit commitments under the Revolver up to $60.0 million. During the six months ended June 30, 2019, the Company borrowed $33.0 million under this commitment. The Revolver matures on June 11, 2023 and the Term Loan matures on June 11, 2024, in each case unless otherwise extended in accordance with the terms of the Credit Facility. The Borrowers may also incur incremental revolving and term loan commitments pursuant to and in accordance with the terms of the Credit Facility. During the six months ended June 30, 2019, the Company made principal payments on the Term Loan of $1.7 million. Outstanding loans under the Credit Facility will bear interest at the Borrowers' option at either the Eurodollar rate plus 5.25% or the base rate plus 4.25% per year. In addition, the Borrowers will be charged (1) a commitment fee in an amount equal to 0.50% per annum times the average daily undrawn portion of the Revolver, (2) a letter of credit fee in an amount equal to the applicable margin then in effect for revolving loans bearing interest at the Eurodollar Rate times the average aggregate daily maximum amount available to be drawn under all outstanding letters of credit, (3) a letter of credit fronting fee in an amount equal to 0.125% times the average aggregate daily maximum amount available to be drawn under all letters of credit and (4) certain other fees as agreed between the parties. The weighted average interest rate applicable to the Term Loan and Revolver under the Credit Facility at June 30, 2019 is approximately 7.84%. As of June 30, 2019 and December 31, 2018, the Company was in compliance with the covenants of all of its debt agreements. Equipment Loans and Capital Leases During the six months ended June 30, 2019, the Company entered into new equipment loans of $1.7 million, with terms of 24 to 60 months. As of June 30, 2019, $0.7 million of the remaining balance is included in Current Portion of Equipment Loan and $1.0 million is included in Equipment Loan, Net of Current Portion in the Consolidated Balance Sheets. The Company makes monthly payments of principal and interest on the equipment loan. Principal payments for the three and six months ended June 30, 2019 were $0.6 million and $0.8 million, respectively. Additionally, the Company enters into equipment loans that are treated as capital leases. The loans require payments over 6 to 84 months and amounts due under capital leases are included in total liabilities (either current or non-current) in the Consolidated Balance Sheets. The equipment under the capital leases are included in property and equipment, net, and depreciation related to capital lease assets is included in depreciation expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). Certain of the loans are collateralized by the associated equipment it was issued to finance. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES The Company's effective income tax rate for the three and six months ended June 30, 2019 was a benefit rate of 7.9% and a provision rate of 3.8%, respectively, as compared to effective income tax benefit rates of 84.6% and 64.2% for the three and six months ended June 30, 2018, respectively. The effective tax rates for the 2019 periods reflect a discrete charge to adjust income taxes payable associated with certain of the Company's subsidiaries to reflect the Company's consolidated income tax liability. The Company has evaluated its income tax positions and determined that no material uncertain tax positions existed at June 30, 2019. The Company does not expect a significant change in its unrecognized tax benefits within the next twelve months. The Company files income tax returns in the U.S. Federal and various state, local and foreign jurisdictions. For Federal income tax purposes, the 2015 through 2017 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For state tax purposes, the 2014 through 2017 tax years remain open for examination by the tax authorities under a four-year statute of limitations. For foreign income tax purposes, the tax years 2013 through 2017 remain open for examination by the tax authorities under the various statute of limitation requirements of specific local country's tax laws. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 8. RELATED PARTY TRANSACTIONS Related Party Transactions During the three months ended June 30, 2019 and 2018, the Company derived approximately $24,000 in revenues, in both periods, from related entities. During the six months ended June 30, 2019 and 2018, the Company derived approximately $32,000 and $51,000 in revenues from related entities, respectively. The Company paid approximately $6,000 and $0 for waste hauling services to the same related entities in the three months ended June 30, 2019 and 2018, respectively. The Company paid approximately $13,000 and $3,000 for waste hauling services in the six months ended June 30, 2019 and 2018, respectively. Prior to the Business Combination, the Company had a management agreement with JFLCo whereby JFLCo provided services, including, among other things, cash flow planning/forecasting and merger/acquisition target identification. The Company incurred approximately $0.4 million and $0.8 million in management fees for the three and six months ended June 30, 2018, respectively. No management fees were incurred for the three and six months ended June 30, 2019. These expenses are reflected as Management Fees on the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Pursuant to the Purchase Agreement, dated as of June 25, 2018, as amended on July 12, 2018 (the "Purchase Agreement"), between JFL Partners and Hennessy Capital (now known as NRC Group Holdings Corp.), the closing of the OIT transaction triggered a payment obligation by the Company of $10.0 million to JFL Partners, which payment could be made, at the election of the Company's board of directors, in cash, Company Common Stock or a combination of the two. Following the OIT acquisition, on May 10, 2019, the Company's board of directors authorized the payment to be made entirely in Company Common Stock. Accordingly, in accordance with the formula set forth in the Purchase Agreement, 1,147,841 shares were issued to JFL Partners and the Company recorded $10.0 million of OIT transaction related expenses in Acquisition Expense in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2019. Pursuant to the terms of the Purchase Agreement, the Company may also be obligated to pay to JFL Partners additional consideration of up to $25.0 million (payable in cash, shares of Company Common Stock or any combination thereof, at the Company's option) to the extent certain financial performance metrics are achieved by the OIT business during calendar years 2019 and 2020. The full $25.0 million would be payable if the OIT business's normalized earnings before interest, taxes, depreciation and amortization exceeded $10.0 million in either calendar year, and no payment would be due unless the OIT business achieved normalized earnings before interest, taxes, depreciation and amortization of more than $6.0 million in either calendar year. In connection with the execution of the Merger Agreement, US Ecology entered into an Investor Agreement (the "Investor Agreement") with Holdco, JFL-NRC-SES Partners, LLC, JFL-NRCG Holdings III, LLC and JFL-NRCG Holdings IV, LLC (collectively, "the JFL Entities") and, solely with respect to Section 4 thereof, NRCG. Pursuant to Section 4 of the Investor Agreement and subject to the closing of the Mergers, each of the JFL entities agreed to, among other things, waive its right to the additional consideration. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Letters of Credit and Guarantees Under the terms of the Company's oilfield waste disposal permit for the SKCD facility, financial security must be provided to the RRC in an amount necessary to close the facility. The Company has secured letters of credit from third-party financial institutions in the amount of $3.3 million as required by the terms of the permit, which have been pledged to the RRC to cover potential closure costs. In addition, the Company has secured letters of credit from third-party financial institutions in the amount of $1.6 million as required by the terms of the permit, which have been pledged to cover potential closure costs of the Company's two transfer storage and disposal facilities in Vermont and Maine, as well as other corporate matters. The letters of credit are renewed annually. Litigation In the normal course of business, the Company and its subsidiaries are involved in various claims and legal proceedings. While the ultimate resolution of these matters has yet to be determined, the Company does not believe that any unfavorable outcomes will have a material adverse effect on the Company's consolidated financial position or results of operations. At June 30, 2019 and December 31, 2018, the Company had no reserves recorded for any outstanding litigation, claim or assessment. Leases Total rent expense for the Company's operating leases for the three and six months ended June 30, 2019 was $3.8 million and $7.3 million, respectively. Total rent expense for the Company's operating leases for the three and six months ended June 30, 2018 was $3.0 million and $5.9 million, respectively. As of June 30, 2019, future minimum lease payments in the following years ended December 31 that have a remaining term in excess of one year are as follows (in thousands): Capital Leases Operating Leases 2019 (excluding the six months ended June 30, 2019) $ 1,672 $ 7,307 2020 3,344 13,333 2021 3,474 8,991 2022 3,226 7,008 2023 3,206 5,301 Thereafter 4,109 3,865 Total minimum payments $ 19,031 $ 45,805 Less: imputed interest 2,750 Present value of minimum capital lease payments $ 16,281 The present value of minimum capital lease payments is included in Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. |
Segment Data and Geographical D
Segment Data and Geographical Data | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT DATA AND GEOGRAPHICAL DATA | 10. SEGMENT DATA AND GEOGRAPHICAL DATA The Company’s operations are managed within four operating segments: Domestic Standby Services, Domestic Environmental Services, International Services and Sprint. Costs not managed through the Company’s operating segments described above are recorded as “Corporate Items.” Corporate Items represents certain central services that are not allocated to the Company’s operating segments for internal reporting purposes and include selling, general and administrative expenses such as legal, accounting and other items of a general corporate nature that are not allocated to the Company’s operating segments. These segments have been selected based on the Company’s Chief Operating Decision Maker (“CODM”) assessment of resources allocation and performance. The Company considers its Chief Executive Officer to be its CODM. The CODM evaluates the performance of our segments based on revenue and income measures which include operating profit (exclusive of depreciation, amortization and certain other charges). Operating profit (exclusive of depreciation, amortization and certain other charges) is defined as Operating revenue, less Operating expenses, including cost of revenue, and General and administrative expenses. The classification of certain prior period Operating expenses, including costs of revenue (excluding depreciation and amortization) and certain prior period General and administrative expenses have been recast to reflect the current period presentation. The following table provides segment data for the three and six months ended June 30, 2019 and 2018 (in thousands): Domestic Domestic Standby Environmental Corporate Services Services International Sprint Items Total Three Months Ended June 30, 2019 Operating revenue $ 9,671 $ 82,071 $ 9,314 $ 20,785 $ - $ 121,841 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 5,196 62,843 6,696 8,943 - 83,678 General and administrative expenses 991 7,163 958 4,105 3,971 17,188 Operating profit (exclusive of depreciation, amortization and certain other expenses) 3,484 12,065 1,660 7,737 (3,971 ) 20,975 2018 Operating revenue $ 9,119 $ 48,561 $ 5,651 $ 18,361 $ - $ 81,692 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 4,467 38,346 3,721 7,948 - 54,482 General and administrative expenses 830 5,792 1,008 2,859 2,251 12,740 Operating profit (exclusive of depreciation, amortization and certain other expenses) 3,822 4,423 922 7,554 (2,251 ) 14,470 Six Months Ended June 30, 2019 Operating revenue $ 20,064 $ 142,937 $ 17,461 $ 41,873 $ - $ 222,335 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 10,419 114,102 12,642 17,770 - 154,933 General and administrative expenses 1,940 14,362 1,855 7,856 8,068 34,081 Operating profit (exclusive of depreciation, amortization and certain other expenses) 7,705 14,473 2,964 16,247 (8,068 ) 33,321 Goodwill - 32,014 1,865 18,985 - 52,864 Assets 77,576 182,438 19,677 150,823 (9,248 ) 421,266 2018 Operating revenue $ 18,091 $ 89,418 $ 10,444 $ 34,971 $ - $ 152,924 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 8,156 72,152 7,065 15,475 - 102,848 General and administrative expenses 1,619 10,372 1,710 5,470 3,964 23,135 Operating profit (exclusive of depreciation, amortization and certain other expenses) 8,316 6,894 1,669 14,026 (3,964 ) 26,941 Goodwill - 31,008 2,620 10,935 - 44,563 Assets 76,245 159,054 20,092 92,772 (18,935 ) 329,228 The following table presents a reconciliation of Operating profit (exclusive of depreciation, amortization and certain other charges) to net loss (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Operating profit (exclusive of depreciation and amortization): Domestic Standby Services $ 3,484 $ 3,822 $ 7,705 $ 8,316 Domestic Environmental Services 12,065 4,423 14,473 6,894 International 1,660 922 2,964 1,669 Sprint 7,737 7,554 16,247 14,026 Corporate (3,971 ) (2,251 ) (8,068 ) (3,964 ) Total Operating profit (exclusive of depreciation, amortization and certain other charges) 20,975 14,470 33,321 26,941 Less: Depreciation and amortization 9,678 5,325 18,690 11,784 Management fees - 357 - 800 Acquisition expenses 10,715 2,064 11,162 3,286 Share-based compensation 1,268 - 1,268 - Change in fair value of contingent consideration 2,026 - 4,077 - Other expense, net 413 1,443 1,813 2,340 Operating (loss) income (3,125 ) 5,281 (3,689 ) 8,731 Total other expenses, net (7,857 ) (6,628 ) (14,199 ) (10,320 ) Loss before income taxes (10,982 ) (1,347 ) (17,888 ) (1,589 ) Income tax (benefit) expense (867 ) (1,139 ) 687 (1,020 ) Net loss $ (10,115 ) $ (208 ) $ (18,575 ) $ (569 ) The following tables provides revenue by geographic location for each segment for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months Ended June 30, 2019 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 9,669 $ 82,071 $ - $ 20,785 $ 112,525 92 % Latin America and Caribbean 2 - - - 2 0 % EMEA - - 9,308 - 9,308 8 % Asia Pacific - - 6 - 6 0 % Total operating revenue $ 9,671 $ 82,071 $ 9,314 $ 20,785 $ 121,841 100 % % of Total 8 % 67 % 8 % 17 % 100 % For the Three Months Ended June 30, 2018 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 8,938 $ 48,561 $ - $ 18,361 $ 75,860 93 % Latin America and Caribbean 181 - - - 181 0 % Europe, Middle East and Africa (“EMEA”) - - 5,647 - 5,647 7 % Asia Pacific - - 4 - 4 0 % Total operating revenue $ 9,119 $ 48,561 $ 5,651 $ 18,361 $ 81,692 100 % % of Total 11 % 59 % 7 % 23 % 100 % For the Six Months Ended June 30, 2019 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 19,603 $ 142,937 $ - $ 41,873 $ 204,413 92 % Latin America and Caribbean 461 - - - 461 0 % EMEA - - 17,448 - 17,448 8 % Asia Pacific - - 13 - 13 0 % Total operating revenue $ 20,064 $ 142,937 $ 17,461 $ 41,873 $ 222,335 100 % % of Total 9 % 64 % 8 % 19 % 100 % For the Six Months Ended June 30, 2018 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 17,198 $ 89,418 $ - $ 34,971 $ 141,587 93 % Latin America and Caribbean 893 - - - 893 1 % Europe, Middle East and Africa (“EMEA”) - - 10,434 - 10,434 7 % Asia Pacific - - 10 - 10 0 % Total operating revenue $ 18,091 $ 89,418 $ 10,444 $ 34,971 $ 152,924 100 % % of Total 12 % 58 % 7 % 23 % 100 % One customer in the Domestic Environmental Services segment represents $22.8 million and $26.6 million of the Company’s consolidated operating revenue for the three and six months ended June 30, 2019, respectively. No single customer accounted for more than 10% of the Company’s consolidated operating revenue for the three and six months ended June 30, 2018. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY (DEFICIT) | 11. STOCKHOLDERS' EQUITY (DEFICIT) Common Stock The Company is authorized to issue up to 200,000,000 shares of Company Common Stock. Company Common Stock has voting rights of one vote for each share of Company Common Stock. As described in Note 9, during the six months ended June 30, 2019, the Company issued 1,147,841 shares of Company Common Stock pursuant to the terms of the Purchase Agreement. Series A Convertible Cumulative Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.0001 per share, 1,050,000 shares of which have been designated as Series A Preferred Stock and the remaining 3,950,000 shares of which are undesignated. In accordance with the terms and conditions of the Series A Certificate of Designations, dividend activity during the six months ended June 30, 2019 is as follows: Declaration Date Record Date Payment Date Dividend per Share Total Cash Payment June 20, 2019 July 1, 2019 July 15, 2019 $ 1.75 $ 1,838 March 29, 2019 April 1, 2019 April 15, 2019 1.75 1,838 December 20, 2018 January 1, 2019 January 15, 2019 1.44 1,511 As of June 30, 2019, $1.8 million of dividends were accrued. Equity and Incentive Compensation Plan During fiscal year 2018, the Company adopted the NRC Group Holdings Corp. 2018 Equity and Incentive Compensation Plan (the "Plan"). The Plan is administered by the Compensation Committee of the Company's Board of Directors. Under the Plan, the Committee may grant an aggregate of 3,000,000 shares of Company Common Stock in the form of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance compensation awards and stock bonus awards. Stock-based payments, including the grant of stock options and RSUs, are subject to service-based vesting requirements, and expense is recognized over the vesting period. Forfeitures are accounted for as they occur. During the six months ended June 30, 2019, 908,778 RSUs and 150,000 stock option awards were granted under the Plan. As of June 30, 2019, 1,941,222 shares are available for issuance under the Plan. Restricted Stock Units The following table summarizes the Company's RSU award activity for the six months ended June 30, 2019: Units Weighted Average Outstanding as of January 1, 2019 - Granted 908,778 $ 8.75 Outstanding as of June 30, 2019 908,778 $ 8.75 Total unrecognized expense remaining $ 6,728,500 Weighted-average years expected to be recognized over 1.5 No restricted stock units vested during the six months ended June 30, 2019. Stock Options The following table summarizes the Company's stock option activity for the six months ended June 30, 2019. Options Weighted Average Weighted Average Aggregate Outstanding as of January 1, 2019 - $ - Granted 150,000 10.25 Outstanding as of June 30, 2019 150,000 10.25 9.8 $ 131,500 Exercisable as of June 30, 2019 - $ - - - The weighted average grant date fair value of stock options granted during the six months ended June 30, 2019 was $1.94. At June 30, 2019, unrecognized compensation cost related to the Company's stock options totaled $247,000 and is expected to be recognized over a weighted-average period of 1.5 years. The fair value of each stock option award on the grant date is estimated using the Black-Scholes option-pricing model with the following assumptions: Expected volatility 24.3 % Expected dividend yield 0 % Risk-free interest rate 2.4 % Expected term (in years) 5.8 The volatility assumption used in the Black-Scholes option-pricing model is based on peer group volatility as the Company does not have a sufficient trading history as a public company. Additionally, due to an insufficient history with respect to stock option activity and post-vesting cancellations, the expected term assumption is based on the simplified method under GAAP, which is based on the vesting period and contractual term for each tranche of awards. The mid-point between the weighted-average vesting term and the expiration date is used as the expected term under this method. The risk-free interest rate used in the Black-Scholes model is based on the implied US Treasury bill yield curve at the date of grant with a remaining term equal to the Company's expected term assumption. The Company has never declared or paid a cash dividend on common shares. Share-based compensation expense Stock-based compensation granted to employees include stock options and RSUs, which are recognized in the financial statements based on their fair value. RSUs are valued based on the intrinsic value of the difference between the exercise price, if any, of the award and the fair market value of our Company Common Stock on the grant date. RSUs and stock options vest in tranches over a period of approximately three years and expire ten years from the grant date. The components of pre-tax share-based compensation expense are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options $ 45 $ - $ 45 Restricted stock units 1,223 - 1,223 Total share-based compensation $ 1,268 $ - $ 1,268 $ - |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Net Income Loss Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | 12. NET INCOME (LOSS) PER SHARE In calculating earnings (loss) per share, the Company retrospectively applied the effects of the Business Combination. Basic net income (loss) per common share ("EPS") is calculated by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed similar to basic net income (loss) per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue Company Common Stock were exercised or converted into Company Common Stock. The following securities were not included in the diluted net loss per share calculation because their effect was anti-dilutive as of the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Series A convertible preferred stock 1,050 - 1,050 - Common stock warrants - equity treatment 19,249 - 19,249 - Stock options 150 - 150 - Restricted stock units 909 - 909 - Potentially dilutive securities 21,358 - 21,358 - |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. They may not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2018, which were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (the "SEC") on March 25, 2019 (the "2018 Annual Report"). The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. Certain prior period financial information has been recast to reflect the current year's presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the Company's consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable at the time under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes in the Company's significant accounting policies to those previously disclosed in the 2018 Annual Report. |
Fair Value | Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value . ● Level 1 - uses quoted prices in active markets for identical assets or liabilities. ● Level 2 - uses observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. The Company's only financial instruments carried at fair value, with changes in fair value flowing through current earnings, consist of contingent consideration liabilities recorded in conjunction with business combinations, as follows (in thousands): Fair Value Measurement at Balance as of Quoted Significant Other Significant Contingent consideration - current $ 6,509 $ - $ - $ 6,509 Contingent consideration - long-term 4,886 - - 4,886 Total liabilities measured at fair value $ 11,395 $ - $ - $ 11,395 Balance as of Quoted Significant Other Significant Contingent consideration - current $ 2,470 $ - $ - $ 2,470 Contingent consideration - long-term 3,846 - - 3,846 Total liabilities measured at fair value $ 6,316 $ - $ - $ 6,316 There were no transfers made among the three levels in the fair value hierarchy for the three and six months ended June 30, 2019 and 2018. The following table presents additional information about Level 3 liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in Level 3 liabilities measured at fair value for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Contingent consideration - beginning of period 8,367 4,639 $ 6,316 $ 4,132 Acquisition of Clean Line (March 28, 2018) - - - 507 Acquisition of OIT (April 26, 2019) 4,023 - 4,023 - Change in fair value of contingent consideration (recognized in earnings) 2,026 - 4,077 - Contingent consideration paid (3,021 ) - (3,021 ) - Contingent consideration - end of period $ 11,395 $ 4,639 $ 11,395 $ 4,639 The fair value of the Company's contingent consideration liabilities recorded as part of the acquisitions of Enpro Holdings Group ("Enpro") in April 2016, Clean Line Waste Water Solutions Limited ("Clean Line") in March 2018, Quail Run Services, LLC ("Quail Run") in October 2018 and OIT Inc. ("OIT") in April 2019, has been classified within Level 3 in the fair value hierarchy. The contingent consideration represents the estimated fair value of future payments due to the sellers of Enpro, Clean Line, Quail Run and OIT based on each company's achievement of annual earnings targets in certain years and other events considered in certain transaction documents. The initial fair values of the contingent consideration were calculated through the use of either Monte Carlo simulation or modified Black-Scholes analyses based on earnings projections for the respective earn-out periods, corresponding earnings thresholds, and approximate timing of payments as outlined in the purchase agreements. The analyses utilized the following assumptions: (i) expected term; (ii) risk-adjusted net sales or earnings; (iii) risk-free interest rate; and (iv) expected volatility of earnings. Estimated payments, as determined through the respective models, were further discounted by a credit spread assumption to account for credit risk. The contingent consideration is adjusted to fair value each period, and any increase or decrease is recorded in operating income (loss). The fair value of the contingent consideration may be impacted by certain unobservable inputs, most significantly with regard to discount rates, expected volatility and historical and projected performance. Significant changes to these inputs in isolation could result in a significantly different fair value measurement. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of the Company's term loans and revolving credit facilities, including the current portion, approximate fair value as the terms and conditions of these loans are consistent with comparable market debt issuances. The carrying value of the equipment loans approximate fair value as the underlying interest rates approximate current market rates for all periods presented. The Company measures certain assets at fair value on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include goodwill and other intangible assets. See Note 5. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts Customers are domestic and international shippers, major oil companies, independent exploration and production companies, pipeline and transportation companies, power generating operators, industrial companies, airports and state and local government agencies. All customers are granted credit on a short-term basis and related credit risks are considered minimal. The Company routinely reviews its trade receivables and makes provisions for probable doubtful accounts based on the credit worthiness of the parties involved, historical collection information and economic conditions. However, those provisions are estimates and actual results could differ from those estimates and those differences may be material. Trade receivables that are deemed uncollectible are removed from accounts receivable and from the allowance for doubtful accounts when collection efforts have been exhausted. The Company records allowances for doubtful accounts receivable based upon expected collectability. The reserve is generally established based upon an analysis of its aged receivables. Additionally, if necessary, a specific reserve for individual accounts is recorded when the Company becomes aware of a customer's inability to meet its financial obligations, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. The Company also regularly reviews the allowance by considering factors such as historical collections experience, credit quality, age of the accounts receivable balance and current economic conditions that may affect a customer's ability to pay. If actual bad debts differ from the reserves calculated, the Company records an adjustment to bad debt expense in the period in which the difference occurs. The following table provides a roll forward of the allowance for doubtful accounts for the six months ended June 30, 2019 and 2018 (in thousands): Six Months Ended 2019 2018 Allowance for doubtful accounts, beginning of period $ 627 $ 895 Bad debt expense 2,212 271 Write-offs, net of recoveries, for bad debt (314 ) (39 ) Allowance for doubtful accounts, end of period $ 2,525 $ 1,127 |
Asset Retirement Obligations | Asset Retirement Obligations Under the terms of its oilfield waste disposal permit for the SKCD facility, the Company is required to perform certain necessary closure activities as required by the RRC. The SKCD facility consists of multiple active and planned disposal pits within the facility, each of which must be closed once they have reached their permitted capacity for waste. Closure of the disposal pit entails capping the pit with a high-density polyethylene liner and topsoil amongst other environmental remediation procedures. The Company records an asset retirement obligation ("ARO") for disposal pits in the year they become active and begin receiving oilfield waste, the balance of which represents the estimated amount the Company will incur to close each disposal pit in the landfill. The liability is initially recorded at fair value with the corresponding cost capitalized as a component of property and equipment within the Consolidated Balance Sheet. The liability is accreted to its present value each period, and the capitalized costs are amortized on a straight-line basis over the expected period of operation of the respective disposal pit. The Company determines the ARO by calculating the present value of estimated future cash flows related to the liability. Estimating the future ARO requires management to make estimates and judgments regarding timing and existence of a liability, as well as the necessary cost to achieve adequate closure of each pit. Inherent in the fair value calculation are numerous assumptions and judgments including the ultimate costs, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the related asset. In each of December 2017 and April 2018, the Company established an ARO liability and associated asset in the amount of $0.65 million and $0.65 million, respectively. The Company recorded accretion expense of $27,000 and $54,000 during the three and six months ended June 30, 2019, respectively, and made payments of $87,000 during the three and six months ended June 30, 2019. The Company recorded accretion expense of $13,000 and $26,000 during the three and six months ended June 30, 2018, respectively. As of June 30, 2019 and December 31, 2018, the ARO liability was $1.3 million and $1.4 million, respectively. These ARO liabilities relate to the future closure costs associated with Disposal Pit #1 and Disposal Pit #2, respectively. Disposal Pit #1 and Disposal Pit #2 are the Company's only active cells in the SKCD facility. This obligation represents the net present value of the estimated future payout of approximately $1.6 million, which is expected to be incurred by the Company upon closure of Disposal Pit #1 in 2020 and Disposal Pit # 2 in 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standards implemented In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification Standards to be implemented In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers: (Topic 606) Identifying Performance Obligations and Licensing In February 2016 the FASB issued ASU No. 2016-02 , Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of changes in fair value hierarchy | Fair Value Measurement at Balance as of Quoted Significant Other Significant Contingent consideration - current $ 6,509 $ - $ - $ 6,509 Contingent consideration - long-term 4,886 - - 4,886 Total liabilities measured at fair value $ 11,395 $ - $ - $ 11,395 Balance as of Quoted Significant Other Significant Contingent consideration - current $ 2,470 $ - $ - $ 2,470 Contingent consideration - long-term 3,846 - - 3,846 Total liabilities measured at fair value $ 6,316 $ - $ - $ 6,316 |
Schedule of changes in liabilities measured at fair value | Three Months Ended Six Months Ended 2019 2018 2019 2018 Contingent consideration - beginning of period 8,367 4,639 $ 6,316 $ 4,132 Acquisition of Clean Line (March 28, 2018) - - - 507 Acquisition of OIT (April 26, 2019) 4,023 - 4,023 - Change in fair value of contingent consideration (recognized in earnings) 2,026 - 4,077 - Contingent consideration paid (3,021 ) - (3,021 ) - Contingent consideration - end of period $ 11,395 $ 4,639 $ 11,395 $ 4,639 |
Schedule of allowance for doubtful accounts | Six Months Ended 2019 2018 Allowance for doubtful accounts, beginning of period $ 627 $ 895 Bad debt expense 2,212 271 Write-offs, net of recoveries, for bad debt (314 ) (39 ) Allowance for doubtful accounts, end of period $ 2,525 $ 1,127 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
OIT [Member] | |
Schedule of allocation of the purchase price to the assets acquired and liabilities assumed | Accounts receivable $ 110 Property, plant and equipment 1,145 Intangible assets 9,623 Goodwill 1,045 Accounts payable and accrued expenses (180 ) Deferred consideration (1,915 ) Contingent consideration (4,023 ) Cash purchase price, net of cash acquired $ 5,805 |
Clean Line [Member] | |
Schedule of allocation of the purchase price to the assets acquired and liabilities assumed | Trade receivable $ 1,590 Other current assets 188 Property and equipment 1,908 Intangible assets 1,104 Goodwill 1,865 Accounts payable and accrued expenses (1,147 ) Contingent liability (507 ) Cash purchase price, net of cash acquired $ 5,001 |
SWS Acquisition [Member] | |
Schedule of allocation of the purchase price to the assets acquired and liabilities assumed | Accounts receivable $ 12,942 Other current assets 545 Property, plant and equipment 7,037 Deposits 362 Bid bonds 565 Intangible assets 2,879 Goodwill 4,899 Accounts payable and accrued expenses (6,176 ) Deferred tax liability (1,237 ) Cash purchase price, net of cash acquired $ 21,816 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | June 30, December 31, 2019 2018 Vessels and equipment $ 36,353 $ 35,553 Vehicles and trailers 67,712 50,458 Machinery and equipment 113,585 109,961 Office equipment and fixtures 8,752 8,549 Landfill 19,025 18,525 Leasehold improvements 10,115 6,490 Computer systems/license fees 3,796 3,527 Construction in progress 27,298 7,697 286,636 240,760 Less: Accumulated depreciation (130,102 ) (118,195 ) Property and equipment, net $ 156,534 $ 122,565 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | June 30, 2019 Useful Lives Weighted Intangible Accumulated Net (Years) (Years) Assets Amortization Balance Customer Relationships 8 - 20 9.7 70,896 (21,643 ) $ 49,253 Tradenames/Trademarks 2 - 25 10.8 13,148 (6,994 ) 6,154 Trademarks Indefinite N/A 837 - 837 Permits/License 3 - 10 9.4 23,560 (8,997 ) 14,563 Non-compete Agreements 5 - 6 0.4 856 (830 ) 26 $ 109,297 $ (38,464 ) $ 70,833 December 31, 2018 Useful Lives Weighted Intangible Accumulated Net (Years) (Years) Assets Amortization Balance Customer Relationships 8 - 20 10.1 $ 70,896 $ (18,939 ) $ 51,957 Tradenames/Trademarks 2 - 25 10.7 13,148 (6,378 ) 6,770 Trademarks Indefinite N/A 837 - 837 Permits/License 3 - 10 9.1 13,458 (8,491 ) 4,967 Non-compete Agreements 5 - 6 0.8 856 (773 ) 83 $ 99,195 $ (34,581 ) $ 64,614 |
Schedule of amortization expense | Year ended December 31, 2019 (excluding the six months ended June 30, 2019) $ 4,391 Year ended December 31, 2020 8,208 Year ended December 31, 2021 7,782 Year ended December 31, 2022 7,607 Year ended December 31, 2023 7,292 Thereafter 34,716 $ 69,996 |
Schedule of goodwill | Ending balance at December 31, 2018 $ 51,417 Addition- OIT acquisition 1,045 Change in SWS acquisition allocation 402 Ending balance at June 30, 2019 $ 52,864 |
Schedule of goodwill by reportable segment | June 30, December 31, 2019 2018 Domestic Environmental Services $ 32,014 $ 30,567 International Services 1,865 1,865 Sprint Segment 18,985 18,985 Total Goodwill $ 52,864 $ 51,417 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of short-term and long-term debt | June 30, December 31, 2019 2018 Term Loan principal $ 339,657 $ 341,372 Less: Unamortized deferred financing fees (7,081 ) (7,837 ) Less: Current portion (3,431 ) (3,431 ) Term loans, net of current portion and deferred financing costs 329,145 330,104 Revolver (current ) 43,000 10,000 Term loans, net of current portion and deferred financing costs, and Revolver $ 372,145 $ 340,104 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Capital Leases Operating Leases 2019 (excluding the six months ended June 30, 2019) $ 1,672 $ 7,307 2020 3,344 13,333 2021 3,474 8,991 2022 3,226 7,008 2023 3,206 5,301 Thereafter 4,109 3,865 Total minimum payments $ 19,031 $ 45,805 Less: imputed interest 2,750 Present value of minimum capital lease payments $ 16,281 |
Segment Data and Geographical_2
Segment Data and Geographical Data (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of provides segment data and geographical data | Domestic Domestic Standby Environmental Corporate Services Services International Sprint Items Total Three Months Ended June 30, 2019 Operating revenue $ 9,671 $ 82,071 $ 9,314 $ 20,785 $ - $ 121,841 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 5,196 62,843 6,696 8,943 - 83,678 General and administrative expenses 991 7,163 958 4,105 3,971 17,188 Operating profit (exclusive of depreciation, amortization and certain other expenses) 3,484 12,065 1,660 7,737 (3,971 ) 20,975 2018 Operating revenue $ 9,119 $ 48,561 $ 5,651 $ 18,361 $ - $ 81,692 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 4,467 38,346 3,721 7,948 - 54,482 General and administrative expenses 830 5,792 1,008 2,859 2,251 12,740 Operating profit (exclusive of depreciation, amortization and certain other expenses) 3,822 4,423 922 7,554 (2,251 ) 14,470 Six Months Ended June 30, 2019 Operating revenue $ 20,064 $ 142,937 $ 17,461 $ 41,873 $ - $ 222,335 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 10,419 114,102 12,642 17,770 - 154,933 General and administrative expenses 1,940 14,362 1,855 7,856 8,068 34,081 Operating profit (exclusive of depreciation, amortization and certain other expenses) 7,705 14,473 2,964 16,247 (8,068 ) 33,321 Goodwill - 32,014 1,865 18,985 - 52,864 Assets 77,576 182,438 19,677 150,823 (9,248 ) 421,266 2018 Operating revenue $ 18,091 $ 89,418 $ 10,444 $ 34,971 $ - $ 152,924 Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) 8,156 72,152 7,065 15,475 - 102,848 General and administrative expenses 1,619 10,372 1,710 5,470 3,964 23,135 Operating profit (exclusive of depreciation, amortization and certain other expenses) 8,316 6,894 1,669 14,026 (3,964 ) 26,941 Goodwill - 31,008 2,620 10,935 - 44,563 Assets 76,245 159,054 20,092 92,772 (18,935 ) 329,228 |
Schedule of reconciliation of operating profit exclusive of depreciation and amortization to net income loss | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Operating profit (exclusive of depreciation and amortization): Domestic Standby Services $ 3,484 $ 3,822 $ 7,705 $ 8,316 Domestic Environmental Services 12,065 4,423 14,473 6,894 International 1,660 922 2,964 1,669 Sprint 7,737 7,554 16,247 14,026 Corporate (3,971 ) (2,251 ) (8,068 ) (3,964 ) Total Operating profit (exclusive of depreciation, amortization and certain other charges) 20,975 14,470 33,321 26,941 Less: Depreciation and amortization 9,678 5,325 18,690 11,784 Management fees - 357 - 800 Acquisition expenses 10,715 2,064 11,162 3,286 Share-based compensation 1,268 - 1,268 - Change in fair value of contingent consideration 2,026 - 4,077 - Other expense, net 413 1,443 1,813 2,340 Operating (loss) income (3,125 ) 5,281 (3,689 ) 8,731 Total other expenses, net (7,857 ) (6,628 ) (14,199 ) (10,320 ) Loss before income taxes (10,982 ) (1,347 ) (17,888 ) (1,589 ) Income tax (benefit) expense (867 ) (1,139 ) 687 (1,020 ) Net loss $ (10,115 ) $ (208 ) $ (18,575 ) $ (569 ) |
Schedule of revenue by geographic location with each segment | For the Three Months Ended June 30, 2019 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 9,669 $ 82,071 $ - $ 20,785 $ 112,525 92 % Latin America and Caribbean 2 - - - 2 0 % EMEA - - 9,308 - 9,308 8 % Asia Pacific - - 6 - 6 0 % Total operating revenue $ 9,671 $ 82,071 $ 9,314 $ 20,785 $ 121,841 100 % % of Total 8 % 67 % 8 % 17 % 100 % For the Three Months Ended June 30, 2018 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 8,938 $ 48,561 $ - $ 18,361 $ 75,860 93 % Latin America and Caribbean 181 - - - 181 0 % Europe, Middle East and Africa ("EMEA") - - 5,647 - 5,647 7 % Asia Pacific - - 4 - 4 0 % Total operating revenue $ 9,119 $ 48,561 $ 5,651 $ 18,361 $ 81,692 100 % % of Total 11 % 59 % 7 % 23 % 100 % For the Six Months Ended June 30, 2019 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 19,603 $ 142,937 $ - $ 41,873 $ 204,413 92 % Latin America and Caribbean 461 - - - 461 0 % EMEA - - 17,448 - 17,448 8 % Asia Pacific - - 13 - 13 0 % Total operating revenue $ 20,064 $ 142,937 $ 17,461 $ 41,873 $ 222,335 100 % % of Total 9 % 64 % 8 % 19 % 100 % For the Six Months Ended June 30, 2018 Domestic Domestic Standby Environmental % of Services Services International Sprint Total Total North America $ 17,198 $ 89,418 $ - $ 34,971 $ 141,587 93 % Latin America and Caribbean 893 - - - 893 1 % Europe, Middle East and Africa ("EMEA") - - 10,434 - 10,434 7 % Asia Pacific - - 10 - 10 0 % Total operating revenue $ 18,091 $ 89,418 $ 10,444 $ 34,971 $ 152,924 100 % % of Total 12 % 58 % 7 % 23 % 100 % |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of dividend | Declaration Date Record Date Payment Date Dividend per Share Total Cash Payment June 20, 2019 July 1, 2019 July 15, 2019 $ 1.75 $ 1,838 March 29, 2019 April 1, 2019 April 15, 2019 1.75 1,838 December 20, 2018 January 1, 2019 January 15, 2019 1.44 1,511 |
Schedule of restricted stock units award activity | Units Weighted Average Grant date Fair value Outstanding as of January 1, 2019 - Granted 908,778 $ 8.75 Outstanding as of June 30, 2019 908,778 $ 8.75 Total unrecognized expense remaining $ 6,728,500 Weighted-average years expected to be recognized over 1.5 |
Schedule of stock option activity | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of January 1, 2019 - $ - Granted 150,000 10.25 Outstanding as of June 30, 2019 150,000 10.25 9.8 $ 131,500 Exercisable as of June 30, 2019 - $ - - - |
Schedule of stock option award on grant date estimated using the black-scholes option-pricing model | Expected volatility 24.3 % Expected dividend yield 0 % Risk-free interest rate 2.4 % Expected term (in years) 5.8 |
Schedule of pre-tax share-based compensation expense | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options $ 45 $ - $ 45 Restricted stock units 1,223 - 1,223 Total share-based compensation $ 1,268 $ - $ 1,268 $ - |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Income Loss Per Share Tables [Abstract] | |
Schedule of diluted net loss per share | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Series A convertible preferred stock 1,050 - 1,050 - Common stock warrants - equity treatment 19,249 - 19,249 - Stock options 150 - 150 - Restricted stock units 909 - 909 - Potentially dilutive securities 21,358 - 21,358 - |
Description of Organization a_2
Description of Organization and Business Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 11, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 23, 2019 | Jun. 22, 2017 |
Description of Organization and Business Operations (Textual) | ||||||
Dividend payment | $ 86,500 | $ (86,543) | $ (86,543) | |||
Series A convertible cumulative preferred stock, par value | $ 0.0001 | |||||
Pre-Merger exercise price | $ 11.50 | |||||
Shares merger, description | Rooster Merger, each share of 7.00% Series A Convertible Cumulative Preferred Stock | |||||
NRCG Common Stock [Member] | ||||||
Description of Organization and Business Operations (Textual) | ||||||
Common stock, par value | 0.0001 | |||||
Holdco Common Stock [Member] | ||||||
Description of Organization and Business Operations (Textual) | ||||||
Common stock, par value | 0.196 | |||||
Series A convertible cumulative preferred stock, par value | $ 0.01 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Contingent consideration - current | $ 6,509 | $ 2,470 | ||||
Contingent consideration - long-term | 4,886 | 3,846 | ||||
Total liabilities measured at fair value | 11,395 | $ 8,367 | 6,316 | $ 4,639 | $ 4,639 | $ 4,132 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||
Contingent consideration - current | ||||||
Contingent consideration - long-term | ||||||
Total liabilities measured at fair value | ||||||
Significant Other Observable Inputs (Level 2) [Member] | ||||||
Contingent consideration - current | ||||||
Contingent consideration - long-term | ||||||
Total liabilities measured at fair value | ||||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||
Contingent consideration - current | 6,509 | 2,470 | ||||
Contingent consideration - long-term | 4,886 | 3,846 | ||||
Total liabilities measured at fair value | $ 11,395 | $ 6,316 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of significant accounting policies [Abstract] | ||||
Contingent consideration - beginning of period | $ 8,367 | $ 4,639 | $ 6,316 | $ 4,132 |
Acquisition of Clean Line (March 28, 2018) | 507 | |||
Acquisition of OIT (April 26, 2019) | 4,023 | 4,023 | ||
Change in fair value of contingent consideration (recognized in earnings) | 2,026 | 4,077 | ||
Contingent consideration paid | (3,021) | (3,021) | ||
Contingent consideration - end of period | $ 11,395 | $ 4,639 | $ 11,395 | $ 4,639 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of significant accounting policies [Abstract] | ||
Allowance for doubtful accounts, beginning of period | $ 627 | $ 895 |
Bad debt expense | 2,212 | 271 |
Write-offs, net of recoveries, for bad debt | (314) | (39) |
Allowance for doubtful accounts, end of period | $ 2,525 | $ 1,127 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Apr. 30, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | |||||||
Asset retirement obligations liability and associated asset | $ 1,300 | $ 1,300 | $ 1,400 | $ 650 | $ 650 | ||
Net present value of estimated future | $ 1,600 | ||||||
Accretion expense | 27 | $ 13 | 54 | $ 26 | |||
Payments of accretion expense | $ 87 | $ 87 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 15, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 28, 2018 | Mar. 14, 2018 |
Goodwill | $ 52,864 | $ 51,417 | $ 44,563 | |||
Clean Line [Member] | ||||||
Accounts / Trade receivable | $ 1,590 | |||||
Other current assets | 188 | |||||
Property and equipment | 1,908 | |||||
Intangible assets | 1,104 | |||||
Goodwill | 1,865 | |||||
Accounts payable and accrued expenses | (1,147) | |||||
Contingent liability | (507) | |||||
Cash purchase price, net of cash acquired | $ 5,001 | |||||
OIT [Member] | ||||||
Accounts / Trade receivable | $ 110 | |||||
Property and equipment | 1,145 | |||||
Intangible assets | 9,623 | |||||
Goodwill | 1,045 | |||||
Accounts payable and accrued expenses | (180) | |||||
Deferred consideration | (1,915) | |||||
Contingent liability | (4,023) | |||||
Cash purchase price, net of cash acquired | $ 5,805 | |||||
SWS Acquisition [Member] | ||||||
Accounts / Trade receivable | $ 12,942 | |||||
Other current assets | 545 | |||||
Property and equipment | 7,037 | |||||
Deposits | 362 | |||||
Bid bonds | 565 | |||||
Intangible assets | 2,879 | |||||
Goodwill | 4,899 | |||||
Accounts payable and accrued expenses | (6,176) | |||||
Contingent liability | (1,237) | |||||
Cash purchase price, net of cash acquired | $ 21,816 |
Business Acquisitions (Details
Business Acquisitions (Details Textual) - USD ($) $ in Thousands | Mar. 15, 2019 | May 14, 2018 | Mar. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Business Acquisitions (Textual) | ||||||
Net of cash acquired | $ 5,805 | $ 28,028 | ||||
OIT Acquisition [Member] | ||||||
Business Acquisitions (Textual) | ||||||
Purchase price allocation, description | The transaction closed on April 26, 2019. The Company purchased the assets and business of OIT for an initial adjusted cash purchase price of $5.8 million paid at closing, plus an additional $2.0 million deferred consideration payable in cash, Company Common Stock or a combination of the two, and up to an additional $5.0 million in earn-out payments payable in cash, Company Common Stock or a combination of the two over the next three years based on certain financial milestones. | |||||
Transaction costs | $ 500 | |||||
Clean Line [Member] | ||||||
Business Acquisitions (Textual) | ||||||
Purchase price allocation, description | The Company and Clean Line entered into an agreement for the sale and purchase of the entire issued share capital of Clean Line for approximately $5.0 million, net of cash acquired, and exclusive of deferred consideration and a potential $3.9 million (£3.0 million) in earn out consideration, discussed below. | |||||
Transaction costs | $ 1,100 | 1,100 | ||||
SWS Acquisition [Member] | ||||||
Business Acquisitions (Textual) | ||||||
Deferred tax benefit | 1,200 | 1,200 | ||||
Net of cash acquired | $ 21,800 | |||||
Acquisition transaction costs | $ 1,500 | $ 1,500 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Vessels and equipment | $ 36,353 | $ 35,553 |
Vehicles and trailers | 67,712 | 50,458 |
Machinery and equipment | 113,585 | 109,961 |
Office equipment and fixtures | 8,752 | 8,549 |
Landfill | 19,025 | 18,525 |
Leasehold improvements | 10,115 | 6,490 |
Computer systems/license fees | 3,796 | 3,527 |
Construction in progress | 27,298 | 7,697 |
Total | 286,636 | 240,760 |
Less: Accumulated depreciation | (130,102) | (118,195) |
Property and equipment, net | $ 156,534 | $ 122,565 |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property and Equipment (Textual) | ||||
Depreciation expense | $ 7,700 | $ 4,100 | $ 14,807 | $ 9,017 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets | $ 109,297 | $ 99,195 |
Accumulated Amortization | (38,500) | (34,500) |
Net Balance | $ 70,833 | $ 64,614 |
Minimum [Member] | ||
Useful Lives (Years) | 2 years | |
Maximum [Member] | ||
Useful Lives (Years) | 25 years | |
Customer Relationships [Member] | ||
Weighted average remaining life (Years) | 9 years 8 months 12 days | 10 years 1 month 6 days |
Intangible Assets | $ 70,896 | $ 70,896 |
Accumulated Amortization | (21,643) | (18,939) |
Net Balance | $ 49,253 | $ 51,957 |
Customer Relationships [Member] | Minimum [Member] | ||
Useful Lives (Years) | 8 years | 8 years |
Customer Relationships [Member] | Maximum [Member] | ||
Useful Lives (Years) | 20 years | 20 years |
Tradenames/Trademarks [Member] | ||
Weighted average remaining life (Years) | 10 years 9 months 18 days | 10 years 8 months 12 days |
Intangible Assets | $ 13,148 | $ 13,148 |
Accumulated Amortization | (6,994) | (6,378) |
Net Balance | $ 6,154 | $ 6,770 |
Tradenames/Trademarks [Member] | Minimum [Member] | ||
Useful Lives (Years) | 2 years | 2 years |
Tradenames/Trademarks [Member] | Maximum [Member] | ||
Useful Lives (Years) | 25 years | 25 years |
Trademarks [Member] | ||
Useful Lives (Years) | 0 years | 0 years |
Weighted average remaining life (Years) | 0 years | 0 years |
Intangible Assets | $ 837 | $ 837 |
Accumulated Amortization | ||
Net Balance | $ 837 | $ 837 |
Permits/License [Member] | ||
Weighted average remaining life (Years) | 9 years 4 months 24 days | 9 years 1 month 6 days |
Intangible Assets | $ 23,560 | $ 13,458 |
Accumulated Amortization | (8,997) | (8,491) |
Net Balance | $ 14,563 | $ 4,967 |
Permits/License [Member] | Minimum [Member] | ||
Useful Lives (Years) | 3 years | 3 years |
Permits/License [Member] | Maximum [Member] | ||
Useful Lives (Years) | 10 years | 10 years |
Non-compete Agreements [Member] | ||
Weighted average remaining life (Years) | 4 months 24 days | 9 months 18 days |
Intangible Assets | $ 856 | $ 856 |
Accumulated Amortization | (830) | (773) |
Net Balance | $ 26 | $ 83 |
Non-compete Agreements [Member] | Minimum [Member] | ||
Useful Lives (Years) | 5 years | 5 years |
Non-compete Agreements [Member] | Maximum [Member] | ||
Useful Lives (Years) | 6 years | 6 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Year ended December 31, 2019 (excluding the six months ended June 30, 2019) | $ 4,391 |
Year ended December 31, 2020 | 8,208 |
Year ended December 31, 2021 | 7,782 |
Year ended December 31, 2022 | 7,607 |
Year ended December 31, 2023 | 7,292 |
Thereafter | 34,716 |
Intangible assets, net | $ 69,996 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Goodwill Additions | $ 52,864 | $ 51,417 | $ 44,563 |
OIT Acquisition [Member] | |||
Goodwill Additions | 1,045 | ||
SWS acquisition allocation [Member] | |||
Goodwill Additions | $ 402 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details 3) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Total Goodwill | $ 52,864 | $ 51,417 | $ 44,563 |
Domestic Environmental Services [Member] | |||
Total Goodwill | 32,014 | 30,567 | |
International Services [Member] | |||
Total Goodwill | 1,865 | 1,865 | |
Sprint Segment [Member] | |||
Total Goodwill | $ 18,985 | $ 18,985 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets (Textual) | ||||
Amortization expense related to intangible assets | $ 2,000 | $ 1,200 | $ 3,883 | $ 2,767 |
Minimum [Member] | ||||
Goodwill and Intangible Assets (Textual) | ||||
Intangible assets useful lives | 2 years | |||
Maximum [Member] | ||||
Goodwill and Intangible Assets (Textual) | ||||
Intangible assets useful lives | 25 years |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Long-term Debt | ||
Term Loan principal | $ 339,657 | $ 341,372 |
Less: Unamortized deferred financing fees | (7,081) | (7,837) |
Less: Current portion | (3,431) | (3,431) |
Term loans, net of current portion and deferred financing costs | 329,145 | 330,104 |
Revolver (current) | 43,000 | 10,000 |
Term loans, net of current portion and deferred financing costs, and Revolver | $ 372,145 | $ 340,104 |
Long-Term Debt (Details Textual
Long-Term Debt (Details Textual) - USD ($) $ in Thousands | May 10, 2019 | Mar. 15, 2019 | Oct. 02, 2018 | Jun. 11, 2018 | Jun. 30, 2019 | Jun. 30, 2019 |
Long-Term Debt (Textual) | ||||||
Borrowings, description | Outstanding loans under the Credit Facility will bear interest at the Borrowers' option at either the Eurodollar rate plus 5.25% or the base rate plus 4.25% per year. In addition, the Borrowers will be charged (1) a commitment fee in an amount equal to 0.50% per annum times the average daily undrawn portion of the Revolver, (2) a letter of credit fee in an amount equal to the applicable margin then in effect for revolving loans bearing interest at the Eurodollar Rate times the average aggregate daily maximum amount available to be drawn under all outstanding letters of credit, (3) a letter of credit fronting fee in an amount equal to 0.125% times the average aggregate daily maximum amount available to be drawn under all letters of credit and (4) certain other fees as agreed between the parties. The weighted average interest rate applicable to the Term Loan and Revolver under the Credit Facility at June 30, 2019 is approximately 7.84%. | |||||
Payments on the term loan | $ 1,700 | |||||
Principal payments of loans | $ 600 | 800 | ||||
Current portion of equipment loan | 700 | $ 700 | ||||
Equipment loans, description | The Company entered into new equipment loans of $1.7 million, with terms of 24-60 months. | |||||
Equipment Loan [Member] | ||||||
Long-Term Debt (Textual) | ||||||
Current portion of equipment loan | $ 1,000 | $ 1,000 | ||||
Line of credit [Member] | ||||||
Long-Term Debt (Textual) | ||||||
Line of credit facility, description | The Company entered into incremental revolving credit commitments of $10.0 million and $15.0 million, respectively, under the Credit Facility, bringing its total revolving credit commitments under the Revolver up to $60.0 million. During the six months ended June 30, 2019, the Company borrowed $33.0 million under this commitment. The Revolver matures on June 11, 2023 and the Term Loan matures on June 11, 2024, in each case unless otherwise extended in accordance with the terms of the Credit Facility. The Borrowers may also incur incremental revolving and term loan commitments pursuant to and in accordance with the terms of the Credit Facility. | The Company entered into incremental revolving credit commitments of $10.0 million and $15.0 million, respectively, under the Credit Facility, bringing its total revolving credit commitments under the Revolver up to $60.0 million. During the six months ended June 30, 2019, the Company borrowed $33.0 million under this commitment. The Revolver matures on June 11, 2023 and the Term Loan matures on June 11, 2024, in each case unless otherwise extended in accordance with the terms of the Credit Facility. The Borrowers may also incur incremental revolving and term loan commitments pursuant to and in accordance with the terms of the Credit Facility. | The Borrowers and the other guarantors (including NRC Group) entered into a joinder agreement (the "Joinder Agreement") on October 2, 2018, pursuant to which the Borrowers increased the Original Term Loan in the amount of $35.0 million (the "Incremental Term Loan," and together with the Original Term Loan, the "Term Loan") and the amount available under the Revolver was reduced by $5 million to $35.0 million. | NRC Group, as parent, and the other guarantors party thereto entered into a credit facility (the "Credit Facility") on June 11, 2018, which included a $308.0 million term loan (the "Original Term Loan") and a $40.0 million revolving credit facility (the "Revolver"). |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes (Textual) | ||||
Effective income tax rate | 7.90% | 84.60% | 3.80% | 64.20% |
Income tax, description | The Company files income tax returns in the U.S. Federal and various state, local and foreign jurisdictions. For Federal income tax purposes, the 2015 through 2017 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For state tax purposes, the 2014 through 2017 tax years remain open for examination by the tax authorities under a four-year statute of limitations. For foreign income tax purposes, the tax years 2013 through 2017 remain open for examination by the tax authorities under the various statute of limitation requirements of specific local country's tax laws. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transactions (Textual) | |||||
Waste hauling services | $ 6 | $ 0 | $ 13 | $ 3 | |
Revenues from related entities | 24 | 24 | 32 | 51 | |
Management fees | $ 400 | $ 800 | |||
JFL Partners [Member] | |||||
Related Party Transactions (Textual) | |||||
Description of related party transaction | The Company may also be obligated to pay to JFL Partners additional consideration of up to $25.0 million (payable in cash, shares of Company Common Stock or any combination thereof, at the Company's option) to the extent certain financial performance metrics are achieved by the OIT business during calendar years 2019 and 2020. The full $25.0 million would be payable if the OIT business's normalized earnings before interest, taxes, depreciation and amortization exceeded $10.0 million in either calendar year, and no payment would be due unless the OIT business achieved normalized earnings before interest, taxes, depreciation and amortization of more than $6.0 million in either calendar year. | ||||
JFL Partners and Hennessy Capital Acquisition Corp III [Member] | |||||
Related Party Transactions (Textual) | |||||
Description of related party transaction | The closing of the OIT transaction triggered a payment obligation by the Company of $10.0 million to JFL Partners, which payment could be made, at the election of the Company's board of directors, in cash, Company Common Stock or a combination of the two. Following the OIT acquisition, on May 10, 2019, the Company's board of directors authorized the payment to be made entirely in Company Common Stock. Accordingly, in accordance with the formula set forth in the Purchase Agreement, 1,147,841 shares were issued to JFL Partners and the Company recorded $10.0 million of OIT transaction related expenses in Acquisition Expense in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2019. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Capital Leases [Member] | |
2019 (excluding the six months ended June 30, 2019) | $ 1,672 |
2020 | 3,344 |
2021 | 3,474 |
2022 | 3,226 |
2023 | 3,206 |
Thereafter | 4,109 |
Total minimum payments | 19,031 |
Less: imputed interest | 2,750 |
Present value of minimum capital lease payments | 16,281 |
Operating Leases [Member] | |
2019 (excluding the six months ended June 30, 2019) | 7,307 |
2020 | 13,333 |
2021 | 8,991 |
2022 | 7,008 |
2023 | 5,301 |
Thereafter | 3,865 |
Total minimum payments | $ 45,805 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Commitments and Contingencies (Textual) | ||||
Rent expenses operating leases | $ 3,800 | $ 3,000 | $ 7,300 | $ 5,900 |
Financial institutions amount | 1,600 | 1,600 | ||
Letter of Credit [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Financial institutions amount | $ 3,300 | $ 3,300 |
Segment Data and Geographical_3
Segment Data and Geographical Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Operating revenue | $ 121,841 | $ 81,692 | $ 222,335 | $ 152,924 | |
Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) | 83,678 | 54,482 | 154,933 | 102,848 | |
General and administrative expenses | 17,188 | 12,740 | 34,081 | 23,135 | |
Operating profit (exclusive of depreciation, amortization and certain other expenses) | 20,975 | 14,470 | 33,321 | 26,941 | |
Goodwill | 52,864 | 44,563 | 52,864 | 44,563 | $ 51,417 |
Assets | 421,266 | 329,228 | 421,266 | 329,228 | $ 376,127 |
Domestic Standby Services [Member] | |||||
Operating revenue | 9,671 | 9,119 | 20,064 | 18,091 | |
Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) | 5,196 | 4,467 | 10,419 | 8,156 | |
General and administrative expenses | 991 | 830 | 1,940 | 1,619 | |
Operating profit (exclusive of depreciation, amortization and certain other expenses) | 3,484 | 3,822 | 7,705 | 8,316 | |
Goodwill | |||||
Assets | 77,576 | 76,245 | 77,576 | 76,245 | |
Domestic Environmental Services [Member] | |||||
Operating revenue | 82,071 | 48,561 | 142,937 | 89,418 | |
Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) | 62,843 | 38,346 | 114,102 | 72,152 | |
General and administrative expenses | 7,163 | 5,792 | 14,362 | 10,372 | |
Operating profit (exclusive of depreciation, amortization and certain other expenses) | 12,065 | 4,423 | 14,473 | 6,894 | |
Goodwill | 32,014 | 31,008 | 32,014 | 31,008 | |
Assets | 182,438 | 159,054 | 182,438 | 159,054 | |
International [Member] | |||||
Operating revenue | 9,314 | 5,651 | 17,461 | 10,444 | |
Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) | 6,696 | 3,721 | 12,642 | 7,065 | |
General and administrative expenses | 958 | 1,008 | 1,855 | 1,710 | |
Operating profit (exclusive of depreciation, amortization and certain other expenses) | 1,660 | 922 | 2,964 | 1,669 | |
Goodwill | 1,865 | 2,620 | 1,865 | 2,620 | |
Assets | 19,677 | 20,092 | 19,677 | 20,092 | |
Sprint [Member] | |||||
Operating revenue | 20,785 | 18,361 | 41,873 | 34,971 | |
Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) | 8,943 | 7,948 | 17,770 | 15,475 | |
General and administrative expenses | 4,105 | 2,859 | 7,856 | 5,470 | |
Operating profit (exclusive of depreciation, amortization and certain other expenses) | 7,737 | 7,554 | 16,247 | 14,026 | |
Goodwill | 18,985 | 10,935 | 18,985 | 10,935 | |
Assets | 150,823 | 92,772 | 150,823 | 92,772 | |
Corporate Items [Member] | |||||
Operating revenue | |||||
Operating expenses, including cost of revenue (excluding depreciation, amortization and certain other expenses) | |||||
General and administrative expenses | 3,971 | 2,251 | 8,068 | 3,964 | |
Operating profit (exclusive of depreciation, amortization and certain other expenses) | (3,971) | (2,251) | (8,068) | (3,964) | |
Goodwill | |||||
Assets | $ (9,248) | $ (18,935) | $ (9,248) | $ (18,935) |
Segment Data and Geographical_4
Segment Data and Geographical Data (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating profit (exclusive of depreciation and amortization): | $ 20,975 | $ 14,470 | $ 33,321 | $ 26,941 |
Total Operating profit (exclusive of depreciation, amortization and certain other charges) | 20,975 | 14,470 | 33,321 | 26,941 |
Less: | ||||
Depreciation and amortization | 9,678 | 5,325 | 18,690 | 11,784 |
Management fees | 357 | 800 | ||
Acquisition expenses | 10,715 | 2,064 | 11,162 | 3,286 |
Share-based compensation | 1,268 | 1,268 | ||
Change in fair value of contingent consideration | 2,026 | 4,077 | ||
Other expense, net | 413 | 1,443 | 1,813 | 2,340 |
Operating (loss) income | (3,125) | 5,281 | (3,689) | 8,731 |
Total other expenses, net | (7,857) | (6,628) | (14,199) | (10,320) |
Loss before income taxes | (10,982) | (1,347) | (17,888) | (1,589) |
Income tax (benefit) expense | (867) | (1,139) | 687 | (1,020) |
Net loss | (10,115) | (208) | (18,575) | (569) |
Domestic Standby Services [Member] | ||||
Operating profit (exclusive of depreciation and amortization): | 3,484 | 3,822 | 7,705 | 8,316 |
Domestic Environmental Services [Member] | ||||
Operating profit (exclusive of depreciation and amortization): | 12,065 | 4,423 | 14,473 | 6,894 |
International [Member] | ||||
Operating profit (exclusive of depreciation and amortization): | 1,660 | 922 | 2,964 | 1,669 |
Sprint [Member] | ||||
Operating profit (exclusive of depreciation and amortization): | 7,737 | 7,554 | 16,247 | 14,026 |
Corporate [Member] | ||||
Operating profit (exclusive of depreciation and amortization): | $ (3,971) | $ (2,251) | $ (8,068) | $ (3,964) |
Segment Data and Geographical_5
Segment Data and Geographical Data (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total operating revenue | $ 121,841 | $ 81,692 | $ 222,335 | $ 152,924 |
Total | 100.00% | 100.00% | 100.00% | 100.00% |
Domestic Standby Services [Member] | ||||
Total operating revenue | $ 9,671 | $ 9,119 | $ 20,064 | $ 18,091 |
Total | 8.00% | 11.00% | 9.00% | 12.00% |
Domestic Environmental Services [Member] | ||||
Total operating revenue | $ 82,071 | $ 48,561 | $ 142,937 | $ 89,418 |
Total | 67.00% | 59.00% | 64.00% | 58.00% |
International [Member] | ||||
Total operating revenue | $ 9,314 | $ 5,651 | $ 17,461 | $ 10,444 |
Total | 8.00% | 7.00% | 8.00% | 7.00% |
Sprint [Member] | ||||
Total operating revenue | $ 20,785 | $ 18,361 | $ 41,873 | $ 34,971 |
Total | 17.00% | 23.00% | 19.00% | 23.00% |
North America [Member] | ||||
Total operating revenue | $ 112,525 | $ 75,860 | $ 204,413 | $ 141,587 |
Total | 92.00% | 93.00% | 92.00% | 93.00% |
North America [Member] | Domestic Standby Services [Member] | ||||
Total operating revenue | $ 9,669 | $ 8,938 | $ 19,603 | $ 17,198 |
North America [Member] | Domestic Environmental Services [Member] | ||||
Total operating revenue | 82,071 | 48,561 | 142,937 | 89,418 |
North America [Member] | International [Member] | ||||
Total operating revenue | ||||
North America [Member] | Sprint [Member] | ||||
Total operating revenue | 20,785 | 18,361 | 41,873 | 34,971 |
Latin America and Caribbean [Member] | ||||
Total operating revenue | $ 2 | $ 181 | $ 461 | $ 893 |
Total | 0.00% | 0.00% | 0.00% | 1.00% |
Latin America and Caribbean [Member] | Domestic Standby Services [Member] | ||||
Total operating revenue | $ 2 | $ 181 | $ 461 | $ 893 |
Latin America and Caribbean [Member] | Domestic Environmental Services [Member] | ||||
Total operating revenue | ||||
Latin America and Caribbean [Member] | International [Member] | ||||
Total operating revenue | ||||
Latin America and Caribbean [Member] | Sprint [Member] | ||||
Total operating revenue | ||||
EMEA [Member] | ||||
Total operating revenue | $ 9,308 | $ 5,647 | $ 17,448 | $ 10,434 |
Total | 8.00% | 7.00% | 8.00% | 7.00% |
EMEA [Member] | Domestic Standby Services [Member] | ||||
Total operating revenue | ||||
EMEA [Member] | Domestic Environmental Services [Member] | ||||
Total operating revenue | ||||
EMEA [Member] | International [Member] | ||||
Total operating revenue | 9,308 | 5,647 | 17,448 | 10,434 |
EMEA [Member] | Sprint [Member] | ||||
Total operating revenue | ||||
Asia Pacific [Member] | ||||
Total operating revenue | $ 6 | $ 4 | $ 13 | $ 10 |
Total | 0.00% | 0.00% | 0.00% | 0.00% |
Asia Pacific [Member] | Domestic Standby Services [Member] | ||||
Total operating revenue | ||||
Asia Pacific [Member] | Domestic Environmental Services [Member] | ||||
Total operating revenue | ||||
Asia Pacific [Member] | International [Member] | ||||
Total operating revenue | 6 | 4 | 13 | 10 |
Asia Pacific [Member] | Sprint [Member] | ||||
Total operating revenue |
Segment Data and Geographical_6
Segment Data and Geographical Data (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Segments | Jun. 30, 2018USD ($) | |
Segment Data and Geographical Data (Textual) | ||||
Number of operating segments | Segments | 4 | |||
Operating revenue percentage | 10.00% | 10.00% | ||
Operating revenue | $ 121,841 | $ 81,692 | $ 222,335 | $ 152,924 |
Domestic Environmental Services [Member] | ||||
Segment Data and Geographical Data (Textual) | ||||
Operating revenue | 82,071 | $ 48,561 | 142,937 | $ 89,418 |
Domestic Environmental Services [Member] | One Customer [Member] | ||||
Segment Data and Geographical Data (Textual) | ||||
Operating revenue | $ 22,800 | $ 26,600 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)$ / shares | |
Total Cash Payment | $ 1,800,000 |
Dividend Declared [Member] | |
Declaration Date | Jun. 20, 2019 |
Record Date | Jul. 1, 2019 |
Payment Date | Jul. 15, 2019 |
Dividend per Share | $ / shares | $ 1.75 |
Total Cash Payment | $ 1,838 |
Dividend Declared One [Member] | |
Declaration Date | Mar. 29, 2019 |
Record Date | Apr. 1, 2019 |
Payment Date | Apr. 15, 2019 |
Dividend per Share | $ / shares | $ 1.75 |
Total Cash Payment | $ 1,838 |
Dividend Declared Two [Member] | |
Declaration Date | Dec. 20, 2018 |
Record Date | Jan. 1, 2019 |
Payment Date | Jan. 15, 2019 |
Dividend per Share | $ / shares | $ 1.44 |
Total Cash Payment | $ 1,511 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) (Details 1) - Restricted Stock Units [Member] | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Outstanding, Beginning balance | shares | |
Granted, Units | shares | 908,778 |
Outstanding, Ending balance | shares | 908,778 |
Outstanding Beginning, Weighted Average Grant date Fair value | $ / shares | |
Granted, Weighted Average Grant date Fair value | $ / shares | 8.75 |
Outstanding Ending, Weighted Average Grant date Fair value | $ / shares | $ 8.75 |
Total unrecognized expense remaining | $ | $ 6,728,500 |
Weighted-average years expected to be recognized over | 1 year 6 months |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) (Details 2) - Stock Options [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Outstanding, Beginning balance | ||
Granted, Options | 150,000 | |
Outstanding, Ending balance | 150,000 | |
Exercisable, Options | ||
Outstanding Beginning, Weighted Average Exercise Price | $ 10.25 | |
Granted, Weighted Average Exercise Price | 10.25 | |
Outstanding Ending, Weighted Average Exercise Price | 10.25 | |
Exercisable, Weighted Average Exercise Price | ||
Outstanding, Weighted Average Remaining Contractual Life | 9 years 9 months 18 days | |
Exercisable, Weighted Average Remaining Contractual Life | 0 years | |
Outstanding, Aggregate Intrinsic Value | $ 131,500 | |
Exercisable, Aggregate Intrinsic Value |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) (Details 3) - Stock Options [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Expected volatility | 24.30% |
Expected dividend yield | 0.00% |
Risk-free interest rate | 2.40% |
Expected term (in years) | 5 years 9 months 18 days |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit) (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total share-based compensation | $ 1,268 | $ 1,268 | ||
Stock Options [Member] | ||||
Total share-based compensation | 45 | 45 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Total share-based compensation | $ 1,223 | $ 1,223 |
Stockholders' Equity (Deficit_7
Stockholders' Equity (Deficit) (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Authorized common stock | 200,000,000 | 200,000,000 | 200,000,000 |
Preferred stock, authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, designated shares | 1,050,000 | 1,050,000 | |
Preferred stock, undesignated shares | 3,950,000 | 3,950,000 | |
Shares reserved under the plan for issuance of share based payments | 1,941,222 | 1,941,222 | |
Accrued dividend | $ 1,800 | $ 1,800 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Common Stock | |||
Common stock voting rights | Common Stock has voting rights of one vote for each share of Common Stock. | ||
Shares issued of common stock | 1,147,841 | 1,147,841 | |
Stock Option [Member] | |||
Weighted average grant date fair value of stock options granted | $ 1.94 | ||
Unrecognized compensation cost | $ 247 | $ 247 | |
Weighted-average period (year) | 1 year 6 months | ||
Granted shares of common stock | 150,000 | 150,000 | |
Restricted Stock Units (RSUs) [Member] | |||
Granted shares of common stock | 908,778 | 908,778 | |
2018 Equity and Incentive Compensation Plan [Member] | |||
Aggregate shares of common stock | 3,000,000 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Potentially dilutive securities | 21,538 | 21,358 | ||
Stock options [Member] | ||||
Potentially dilutive securities | 150 | 150 | ||
Restricted stock units [Member] | ||||
Potentially dilutive securities | 909 | 909 | ||
Series A convertible preferred stock [Member] | ||||
Potentially dilutive securities | 1,050 | 1,050 | ||
Common stock warrants - equity treatment [Member] | ||||
Potentially dilutive securities | 19,249 | 19,249 |