Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ARABIAN AMERICAN DEVELOPMENT CO | ' |
Entity Central Index Key | '0000007039 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 24,164,700 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
CONSOLIDATED_BALANCE_SHEETS_un
CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $5,693 | $7,608 |
Trade receivables, net | 24,449 | 22,069 |
Advance to AMAK | 536 | 536 |
Inventories | 11,977 | 12,063 |
Prepaid expenses and other assets | 1,625 | 2,075 |
Contractual based intangible assets, net | 42 | 104 |
Taxes receivable | 292 | 571 |
Deferred income taxes | 1,167 | 1,324 |
Total current assets | 45,781 | 46,350 |
Plant, pipeline and equipment, net | 42,229 | 41,925 |
Investment in AMAK | 53,745 | 54,095 |
Mineral properties in the United States | 588 | 588 |
Other assets | 648 | 709 |
TOTAL ASSETS | 142,991 | 143,667 |
Current Liabilities | ' | ' |
Accounts payable | 7,369 | 7,362 |
Accrued interest | 93 | 102 |
Current portion of derivative instruments | 229 | 292 |
Accrued liabilities | 2,498 | 3,060 |
Accrued liabilities in Saudi Arabia | 140 | 140 |
Current portion of post-retirement benefit | 280 | 278 |
Current portion of long-term debt | 1,400 | 1,400 |
Current portion of other liabilities | 1,654 | 1,654 |
Total current liabilities | 13,663 | 14,288 |
Long-term debt, net of current portion | 9,489 | 11,839 |
Post-retirement benefit, net of current portion | 649 | 649 |
Derivative instruments, net of current portion | 266 | 319 |
Other liabilities, net of current portion | 958 | 1,369 |
Deferred income taxes | 11,588 | 11,984 |
Total liabilities | 36,613 | 40,448 |
EQUITY | ' | ' |
Common stock-authorized 40 million shares of $.10 par value; issued and outstanding 23.9 million and 23.8 million shares in 2014 and 2013, respectively | 2,386 | 2,383 |
Additional paid-in capital | 46,577 | 46,064 |
Accumulated other comprehensive loss | -322 | -366 |
Retained Earnings | 57,448 | 54,849 |
Total Arabian American Development Company Stockholders' Equity | 106,089 | 102,930 |
Noncontrolling Interest | 289 | 289 |
Total equity | 106,378 | 103,219 |
TOTAL LIABILITIES AND EQUITY | $142,991 | $143,667 |
CONSOLIDATED_BALANCE_SHEETS_un1
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
EQUITY | ' | ' |
Common Stock, authorized (in shares) | 40 | 40 |
Common Stock, par value (in dollars per share) | $0.10 | $0.10 |
Common Stock, issued (in shares) | 23.9 | 23.8 |
Common Stock, outstanding (in shares) | 23.9 | 23.8 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES | ' | ' |
Petrochemical Product Sales | $62,392 | $51,620 |
Processing Fees | 1,708 | 1,125 |
Total Revenues | 64,100 | 52,745 |
OPERATING COSTS AND EXPENSES | ' | ' |
Cost of Sales and Processing (including depreciation of $865 and $825, respectively) | 55,386 | 46,066 |
GROSS PROFIT | 8,714 | 6,679 |
GENERAL AND ADMINISTRATIVE EXPENSES | ' | ' |
General and Administrative | 4,189 | 3,505 |
Depreciation | 139 | 129 |
Total General and Administrative Expenses | 4,328 | 3,634 |
OPERATING INCOME | 4,386 | 3,045 |
OTHER INCOME (EXPENSE) | ' | ' |
Interest Income | 9 | 1 |
Interest Expense | -110 | -117 |
Losses on Cash Flow Hedge Reclassified from OCI | -67 | -78 |
Equity in earnings (losses) of AMAK | -350 | 2,964 |
Miscellaneous Expense | -45 | -18 |
Total other income (expenses) | -563 | 2,752 |
INCOME BEFORE INCOME TAXES | 3,823 | 5,797 |
INCOME TAXES | 1,224 | 1,011 |
NET INCOME | 2,599 | 4,786 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 0 | 0 |
NET INCOME ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT COMPANY | $2,599 | $4,786 |
Basic Earnings per Common Share | ' | ' |
Net Income Attributable to Arabian American Development Company (in dollars per share) | $0.11 | $0.20 |
Basic Weighted Average Number of Common Shares Outstanding (in shares) | 24,151 | 24,105 |
Diluted Earnings per Common Share | ' | ' |
Net Income Attributable to Arabian American Development Company (in dollars per share) | $0.10 | $0.19 |
Diluted Weighted Average Number of Common Shares Outstanding (in shares) | 24,918 | 24,658 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING COSTS AND EXPENSES | ' | ' |
Cost of petrochemical product Sales and Processing, depreciation | $865 | $825 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ' | ' |
NET INCOME | $2,599 | $4,786 |
OTHER COMPREHENSIVE GAIN, NET OF TAX | ' | ' |
Unrealized holding gains arising during period | 111 | 133 |
Less: reclassification adjustment included in net income | 67 | 78 |
OTHER COMPREHENSIVE GAIN, NET OF TAX | 44 | 55 |
COMPREHENSIVE INCOME | $2,643 | $4,841 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (USD $) | COMMON STOCK [Member] | ADDITIONAL PAID-IN CAPITAL [Member] | ACCUMULATED OTHER COMPREHENSIVE LOSS [Member] | RETAINED EARNINGS [Member] | TOTAL [Member] | NON-CONTROLLING INTEREST [Member] | Total |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2013 | $2,383 | $46,064 | ($366) | $54,849 | $102,930 | $289 | $103,219 |
Balance (in shares) at Dec. 31, 2013 | 23,832 | ' | ' | ' | ' | ' | 23,800 |
Stock options | ' | ' | ' | ' | ' | ' | ' |
Issued to Directors | 0 | 118 | 0 | 0 | 118 | 0 | 118 |
Issued to Employees | 0 | 270 | 0 | 0 | 270 | 0 | 270 |
Warrants | 0 | 33 | 0 | 0 | 33 | 0 | 33 |
Common Stock | ' | ' | ' | ' | ' | ' | ' |
Issued to Employees | 3 | 92 | 0 | 0 | 95 | 0 | 95 |
Issued to Employees (in shares) | 32 | ' | ' | ' | ' | ' | ' |
Unrealized Gain on Interest Rate Swap (net of income tax expense of $24) | 0 | 0 | 44 | 0 | 44 | 0 | 44 |
Net income | 0 | 0 | 0 | 2,599 | 2,599 | 0 | 2,599 |
Balance at Mar. 31, 2014 | $2,386 | $46,577 | ($322) | $57,448 | $106,089 | $289 | $106,378 |
Balance (in shares) at Mar. 31, 2014 | 23,864 | ' | ' | ' | ' | ' | 23,900 |
CONSOLIDATED_STATEMENT_OF_STOC1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) [Abstract] | ' |
Unrealized Gain on Interest Rate Swap, income tax expense | $24 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net Income | $2,599 | $4,786 |
Adjustments to Reconcile Net Income of Arabian American Development Company To Net Cash Provided by (Used in) Operating Activities: | ' | ' |
Depreciation | 1,004 | 954 |
Amortization of Contractual Based Intangible Asset | 63 | 63 |
Accretion of Notes Receivable Discounts | -9 | -1 |
Unrealized Loss on Derivative Instruments | -48 | 0 |
Stock-based Compensation | 425 | 267 |
Deferred Income Taxes | -262 | -214 |
Postretirement Obligation | 2 | 2 |
Equity in (earnings) losses of AMAK | 350 | -2,964 |
Changes in Operating Assets and Liabilities: | ' | ' |
Increase in Trade Receivables | -2,380 | -4,206 |
Decrease in Notes Receivable | 70 | 10 |
Decrease in Income Tax Receivable | 280 | 1,176 |
(Increase) Decrease in Inventories | 86 | -2,457 |
(Increase) Decrease in Prepaid Expenses | 448 | -11 |
Decrease in Accounts Payable and Accrued Liabilities | -559 | -427 |
Increase (Decrease) in Accrued Interest | -9 | 7 |
Increase in Other Liabilities | 0 | 500 |
Net Cash Provided by (Used in) Operating Activities | 2,060 | -2,515 |
INVESTING ACTIVITIES | ' | ' |
Additions to Plant, Pipeline and Equipment | -1,720 | -1,492 |
Addition to Investment in AMAK | 0 | -7,500 |
Net Cash Used in Investing Activities | -1,720 | -8,992 |
FINANCING ACTIVITIES | ' | ' |
Issuance of Common Stock | 95 | 0 |
Additions to Long-Term Debt | 0 | 6,000 |
Repayment of Long-Term Debt | -2,350 | -350 |
Net Cash Provided by (Used in) Financing Activities | -2,255 | 5,650 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -1,915 | -5,857 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 7,608 | 9,508 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5,693 | 3,651 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash payments for interest | 183 | 184 |
Cash payments for taxes, net of refunds | 1,150 | 0 |
Supplemental disclosure of non-cash items: | ' | ' |
Capital expansion amortized to depreciation expense | 411 | 270 |
Unrealized gain on interest rate swap, net of tax expense | $44 | $55 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION [Abstract] | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited 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 in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with the financial statements and related notes contained in the Company’s amended Annual Report on Form 10-K for the year ended December 31, 2013. | |
The unaudited condensed consolidated financial statements included in this document have been prepared on the same basis as the annual consolidated financial statements and in management’s opinion reflect all adjustments, including normal recurring adjustments, necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for the interim periods presented. In the opinion of management, the disclosures included in these consolidated financial statements are adequate to make the information presented not misleading. | |
Unless the context requires otherwise, references to “we,” “us,” “our,” and the “Company” are intended to mean consolidated Arabian American Development Company and its subsidiaries. | |
Operating results for the three months ended March 31, 2014, are not necessarily indicative of results for the year ending December 31, 2014. | |
We operate in one segment and all revenue originates from United States’ sources and all long-lived assets owned are located in the United States. | |
The Company currently owns a 35% interest in AMAK, a Saudi Arabian closed joint stock company which owns and is operating and developing mining assets in Saudi Arabia. We account for our investment under the equity method of accounting. See Note 13. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
2. RECENT ACCOUNTING PRONOUNCEMENTS | |
The Company reviewed the new accounting standards as issued and expects that none of the new standards will have a significant impact on its consolidated financial statements. |
TRADE_RECEIVABLES
TRADE RECEIVABLES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
TRADE RECEIVABLES [Abstract] | ' | ||||||||
TRADE RECEIVABLES | ' | ||||||||
3. TRADE RECEIVABLES | |||||||||
Trade receivables, net, at March 31, 2014, and December 31, 2013, consisted of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(thousands of dollars) | |||||||||
Trade receivables | $ | 24,659 | $ | 22,279 | |||||
Less allowance for doubtful accounts | (210 | ) | (210 | ) | |||||
Trade receivables, net | $ | 24,449 | $ | 22,069 | |||||
Trade receivables serving as collateral for our line of credit with a domestic bank were $19.8 million and $17.7 million at March 31, 2014, and December 31, 2013, respectively (see Note 7). |
INVENTORIES
INVENTORIES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
4. INVENTORIES | |||||||||
Inventories include the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(thousands of dollars) | |||||||||
Raw material | $ | 2,500 | $ | 2,403 | |||||
Petrochemical products | 9,477 | 9,660 | |||||||
Total inventory | $ | 11,977 | $ | 12,063 | |||||
Inventories are recorded at the lower of cost, determined on the last-in, first-out method (LIFO), or market. At March 31, 2014, and December 31, 2013, current cost exceeded LIFO value by approximately $2.0 million and $1.5 million, respectively. | |||||||||
Inventories serving as collateral for our line of credit with a domestic bank were $3.6 million and $4.9 million at March 31, 2014, and December 31, 2013, respectively (see Note 7). | |||||||||
Inventory included products in transit valued at approximately $6.5 million and $4.4 million at March 31, 2014, and December 31, 2013, respectively. |
PLANT_PIPELINE_AND_EQUIPMENT
PLANT, PIPELINE AND EQUIPMENT | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
PLANT, PIPELINE AND EQUIPMENT [Abstract] | ' | ||||||||
PLANT, PIPELINE AND EQUIPMENT | ' | ||||||||
5. PLANT, PIPELINE AND EQUIPMENT | |||||||||
Plant, pipeline and equipment at March 31, 2014, and December 31, 2013, consisted of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(thousands of dollars) | |||||||||
Platinum catalyst | $ | 1,612 | $ | 1,612 | |||||
Land | 1,577 | 1,577 | |||||||
Plant, pipeline and equipment | 72,533 | 71,115 | |||||||
Construction in progress | 1,123 | 824 | |||||||
Total plant, pipeline and equipment | 76,845 | 75,128 | |||||||
Less accumulated depreciation and amortization | (34,616 | ) | (33,203 | ) | |||||
Plant, pipeline and equipment, net | $ | 42,229 | $ | 41,925 | |||||
Plant, pipeline, and equipment serve as collateral for a $14.0 million term loan with a domestic bank (see Note 7). | |||||||||
Construction in progress during the first three months of 2014 included preparation for penhex unit expansion, construction of additional warehousing, installation of additional truck loading stations, and upgrades to various processing equipment. | |||||||||
Amortization relating to the platinum catalyst which is included in cost of sales was $21,067 and $9,558 for the three months ended March 31, 2014, and 2013, respectively. |
NET_INCOME_PER_COMMON_SHARE_AT
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO. [Abstract] | ' | ||||||||||||||||||||||||
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO. | ' | ||||||||||||||||||||||||
6. NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO. | |||||||||||||||||||||||||
The following table (in thousands, except per share amounts) sets forth the computation of basic and diluted net income per share attributable to Arabian American Development Co. for the three months ended March 31, 2014, and 2013, respectively. | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||
Per Share | Per Share | ||||||||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||||
Basic Net Income per Share: | |||||||||||||||||||||||||
Net Income Attributable to Arabian American Development Co. | $ | 2,599 | 24,151 | $ | 0.11 | $ | 4,786 | 24,105 | $ | 0.2 | |||||||||||||||
Dilutive stock options outstanding | 767 | 553 | |||||||||||||||||||||||
Diluted Net Income per Share: | |||||||||||||||||||||||||
Net Income Attributable to Arabian American Development Co. | $ | 2,599 | 24,918 | $ | 0.1 | $ | 4,786 | 24,658 | $ | 0.19 | |||||||||||||||
At March 31, 2014, and 2013, 619,568 and 446,009 potential common stock shares, respectively were issuable upon the exercise of options and warrants. | |||||||||||||||||||||||||
The earnings per share calculations for the periods ended March 31, 2014, and 2013, include 300,000 shares of the Company that are held in the treasury of TOCCO. |
LIABILITIES_AND_LONGTERM_DEBT
LIABILITIES AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2014 | |
LIABILITIES AND LONG-TERM DEBT [Abstract] | ' |
LIABILITIES AND LONG-TERM DEBT | ' |
7. LIABILITIES AND LONG-TERM DEBT | |
In September 2007 we entered into a $10.0 million term loan agreement with a domestic bank to finance the expansion of the petrochemical facility. An amendment was entered into in November 2008 which increased the term loan to $14.0 million due to the increased cost of the expansion. This note is collateralized by plant, pipeline and equipment. The agreement expires October 31, 2018. At March 31, 2014, there was a short-term amount of $1.4 million and a long-term amount of $5.0 million outstanding. At December 31, 2013, there was a short-term amount of $1.4 million and a long-term amount of $5.4 million outstanding. The interest rate on the loan varies according to several options. At March 31, 2014, and December 31, 2013, the rate was 3.25%. However, as discussed in Note 9, effective August 2008, the Company entered into a pay-fixed, receive-variable interest rate swap with the lending bank which has the effect of converting the interest rate on $10.0 million of the loan to a fixed rate. Principal payments of $350,000 are paid quarterly with interest paid monthly. | |
In May 2006 we entered into a $12.0 million revolving loan agreement with a domestic bank secured by accounts receivable and inventory. The loan was originally due to expire on October 31, 2008, but was amended to extend the termination date to June 30, 2015, and ultimately increase the availability of the line to $18.0 million based upon the Company’s accounts receivable and inventory. At March 31, 2014, and December 31, 2013, there was a long-term amount outstanding of $4.5 million and $6.5 million, respectively. The credit agreement contains a sub-limit of $3.0 million available to be used in support of the hedging program. The interest rate on the loan varies according to several options. At March 31, 2014, and December 31, 2013, the rate was 3.25%. The borrowing base is determined by a formula in the loan agreement. If the amount outstanding exceeds the borrowing base, a principal payment is due to reduce the amount outstanding to the calculated borrowing base. Interest is paid monthly. Loan covenants that must be maintained quarterly include EBITDA, capital expenditures, dividends payable to parent, and leverage ratio. Interest on the loan is paid monthly and a commitment fee of 0.25% is due quarterly on the unused portion of the loan. At March 31, 2014, approximately $13.5 million was available to be drawn. | |
We currently have a supplier who is the sole provider of South Hampton’s feedstock, although other sources are available. The account is on open status. In 2007 South Hampton and the supplier entered into an agreement, which expires 7 years from the date of initial operation, for construction of a tank and pipeline connection for the handling of feedstock. In the event of default, South Hampton is obligated to reimburse the supplier for the unamortized portion of the cost of the tank. The tank was placed in service in July 2007. Therefore, at March 31, 2014, 6.75 years of the 7 year agreement have elapsed. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
8. FAIR VALUE MEASUREMENTS | |||||||||||||||||
The following items are measured at fair value on a recurring basis subject to disclosure requirements of ASC Topic 820 at March 31, 2014, and December 31, 2013: | |||||||||||||||||
Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
(thousands of dollars) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Interest rate swap | $ | 495 | - | $ | 495 | - | |||||||||||
Fair Value Measurements Using | |||||||||||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
(thousands of dollars) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Interest Rate Swap | $ | 563 | $ | - | $ | 563 | $ | - | |||||||||
Commodity financial instruments | 48 | 48 | |||||||||||||||
The carrying value of cash and cash equivalents, accounts receivable, notes receivable, taxes receivable, advance to AMAK, accounts payable, accrued interest, accrued liabilities, accrued liabilities in Saudi Arabia and other liabilities approximate the fair value due to the immediate or short-term maturity of these financial instruments. The fair value of variable rate long term debt and notes payable reflect recent market transactions and approximate carrying value. We used observable inputs that would qualify as Level 2 inputs to make its assessment of the approximate fair value of our accounts receivable, notes receivable, taxes receivable, advance to AMAK, accounts payable, accrued interest, accrued liabilities, accrued liabilities in Saudi Arabia, other liabilities and variable rate long term debt and notes payable. We used observable inputs that would qualify as Level 1 inputs to make our assessment of the approximate fair value of cash and cash equivalents. The fair value of the derivative instruments are described below. | |||||||||||||||||
Commodity Financial Instruments | |||||||||||||||||
We periodically enter into financial instruments to hedge the cost of natural gasoline (the primary feedstock) and natural gas (used as fuel to operate the plant). | |||||||||||||||||
We assess the fair value of the financial swaps on feedstock using quoted prices in active markets for identical assets or liabilities (Level 1 of fair value hierarchy). At March 31, 2014, no commodity financial instruments were outstanding. At December 31, 2013, we had derivative contracts with settlement dates through February 2014. For additional information see Note 9 below. | |||||||||||||||||
Interest Rate Swap | |||||||||||||||||
In March 2008 we entered into an interest rate swap agreement with Bank of America related to the $10.0 million term loan secured by plant, pipeline and equipment. The interest rate swap was designed to minimize the effect of changes in the LIBOR rate. We have designated the interest rate swap as a cash flow hedge under ASC Topic 815, Derivatives and Hedging. | |||||||||||||||||
South Hampton assesses the fair value of the interest rate swap using a present value model that includes quoted LIBOR rates and the nonperformance risk of the Company and Bank of America based on the Credit Default Swap Market (Level 2 of fair value hierarchy). | |||||||||||||||||
We have consistently applied valuation techniques in all periods presented and believe we have obtained the most accurate information available for the types of derivative contracts it holds. See discussion of our derivative instruments in Note 9. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
DERIVATIVE INSTRUMENTS [Abstract] | ' | ||||||||
DERIVATIVE INSTRUMENTS | ' | ||||||||
9. DERIVATIVE INSTRUMENTS | |||||||||
Commodity Financial Contracts | |||||||||
Hydrocarbon based manufacturers, such as the Company, are significantly impacted by changes in feedstock and natural gas prices. Not considering derivative transactions, feedstock and natural gas used for the three months ended March 31, 2014, and 2013, represented approximately 81.5% and 80.5% of our operating expenses, respectively. | |||||||||
We endeavor to acquire feedstock and natural gas at the lowest possible cost. Our primary feedstock (natural gasoline) is traded over the counter and not on organized futures exchanges. Financially settled instruments (fixed price swaps) are the principal vehicle used to give some predictability to feed prices. We do not purchase or hold any derivative financial instruments for trading or speculative purposes and are limited by our risk management policy to hedging a maximum of 40% of monthly feedstock requirements. | |||||||||
The financial contracts currently in place are not designated as hedges. As of March 31, 2014, we had no outstanding financial contracts. | |||||||||
The following tables detail (in thousands) the impact the agreements had on the financial statements: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Unrealized gain (loss) | $ | (48 | ) | $ | - | ||||
Realized gain | 87 | - | |||||||
Net gain | $ | 39 | $ | - | |||||
31-Mar-14 | 31-Dec-13 | ||||||||
Fair value of derivative liability | $ | - | $ | 48 | |||||
The realized and unrealized gains and losses are recorded in Cost of Sales and Processing for the periods ended March 31, 2014, and 2013. As a percentage of Cost of Sales and Processing, realized and unrealized gains/(losses) accounted for 0% and 0% for the three months ended March 31, 2014, and 2013, respectively. | |||||||||
Interest Rate Swap | |||||||||
On March 21, 2008, we entered into a pay-fixed, receive-variable interest rate swap agreement with Bank of America related to $10.0 million of our $14 million term loan secured by plant, pipeline and equipment. The effective date of the interest rate swap agreement is August 15, 2008, and terminates on December 15, 2017. The notional amount of the interest rate swap was $4.0 million at March 31, 2014. South Hampton receives credit for payments of variable interest made on the term loan’s variable rates, which are based upon the London InterBank Offered Rate (LIBOR), and pays Bank of America an interest rate of 5.83% less the credit on the interest rate swap. We have designated the transaction as a cash flow hedge. Beginning on August 15, 2008, the derivative instrument was reported at fair value with any changes in fair value reported within the Company’s Statement of Comprehensive Income. We entered into the interest rate swap to minimize the effect of changes in the LIBOR rate. The following tables detail (in thousands) the impact the agreement had on the financial statements: | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Other Comprehensive Loss | |||||||||
Cumulative loss | $ | (495 | ) | $ | (808 | ) | |||
Deferred tax benefit | 173 | 283 | |||||||
Net cumulative loss | $ | (322 | ) | $ | (525 | ) | |||
Interest expense reclassified from other comprehensive loss | $ | 67 | $ | 78 | |||||
March 31, 2014 | 31-Dec-13 | ||||||||
Fair value of interest rate swap - liability | $ | 495 | $ | 563 | |||||
The cumulative loss from the changes in the swap contract’s fair value that is included in other comprehensive loss will be reclassified into income when interest is paid. The net amount of pre-tax loss in other comprehensive income (loss) as of March 31, 2014, predicted to be reclassified into earnings within the next 12 months is approximately $229,000. See further discussion of the fair value of the derivative instruments in Note 8. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
10. STOCK-BASED COMPENSATION | |||||||||||||
On February 21, 2014, we awarded 10 year options to various employees for 500,000 shares. These options have an exercise price equal to the closing price of the stock on February 21, 2014, which was $12.26 and vest in 25% increments over a 4 year period. Compensation expense recognized during the 3 months ended March 31, 2014, was approximately $123,000. The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: | |||||||||||||
Expected volatility | 84% | ||||||||||||
Expected dividends | None | ||||||||||||
Expected term (in years) | 6.25 | ||||||||||||
Risk free interest rate | 1.95% | ||||||||||||
A summary of the status of our stock option awards and warrants is presented below: | |||||||||||||
Number of StockOptions & Warrants | Weighted Average Exercise Price per Share | Weighted | |||||||||||
Average | |||||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Life | |||||||||||||
Outstanding at January 1, 2014 | 1,326,360 | $ | 4.75 | ||||||||||
Granted | 500,000 | 12.26 | |||||||||||
Exercised | (31,820 | ) | 2.86 | ||||||||||
Expired | -- | -- | |||||||||||
Cancelled | -- | -- | |||||||||||
Forfeited | -- | -- | |||||||||||
Outstanding at March 31, 2014 | 1,794,540 | $ | 6.87 | 7.3 | |||||||||
Exercisable at March 31, 2014 | 619,568 | $ | 4.43 | 6 | |||||||||
The fair value of the previously issued options granted below was calculated using the Black Scholes option valuation model with the assumptions as disclosed in prior quarterly and annual filings. | |||||||||||||
Directors’ compensation of approximately $94,000 and $94,000 during the three months ended March 31, 2014, and 2013, respectively, were recognized related to options to purchase shares vesting through 2017. | |||||||||||||
Excluding the options granted in 2014 as disclosed above, employee compensation of approximately $150,000 and $119,000 during the three months ended March 31, 2014, and 2013, respectively, was recognized related to options with a 4 year vesting period awarded to officers and key employees. These options vest through 2017. | |||||||||||||
Post-retirement compensation of approximately $24,000 was recognized during the three months ended March 31, 2014, and 2013, related to options awarded to Mr. Hatem El Khalidi in July 2009. On May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited these options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders. The Company is litigating its right to withdraw the options and benefits and as such, these options and benefits continue to be shown as outstanding. See further discussion in Note 15. | |||||||||||||
Investor relations expense of approximately $33,000 and $30,000 during the three months ended March 31, 2014, and 2013, respectively, was recognized related to warrants issued for the purchase of 100,000 shares of common stock to Genesis Select Corporation (“Genesis”). These warrants vest through 2017 contingent upon continuous investor relations service under the consulting agreement with Genesis. | |||||||||||||
See the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, for additional information. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
INCOME TAXES [Abstract] | ' |
INCOME TAXES | ' |
11. INCOME TAXES | |
We file an income tax return in the U.S. federal jurisdiction and Texas. Tax returns for the years 2010 through 2013 remain open for examination in various tax jurisdictions in which we operate. As of March 31, 2014, and December 31, 2013, we recognized no material adjustments in connection with uncertain tax positions. |
POSTRETIREMENT_OBLIGATIONS
POST-RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2014 | |
POST-RETIREMENT OBLIGATIONS [Abstract] | ' |
POST-RETIREMENT OBLIGATIONS | ' |
12. POST-RETIREMENT OBLIGATIONS | |
In January 2008 an amended retirement agreement, replacing the February 2007 agreement, was entered into with Mr. El Khalidi. The amended agreement provides $6,000 per month in benefits to Mr. El Khalidi upon his retirement for the remainder of his life. Additionally, upon his death $4,000 per month will be paid to his surviving spouse for the remainder of her life. A health insurance benefit will also be provided. An additional $382,000 was accrued in January 2008 for the increase in benefits. A liability of approximately $929,000 based upon an annuity single premium value contract plus accrued interest was outstanding at March 31, 2014, and was included in post-retirement benefits. As of March 31, 2014, no payments have been made pursuant to this agreement. | |
In June 2009 our Board of Directors awarded Mr. El Khalidi a retirement bonus in the amount of $31,500 for 42 years of service. While there is no written policy regarding retirement bonus compensation, the Company has historically awarded all employees (regardless of job position) a retirement bonus equal to $750 for each year of service. Since Mr. El Khalidi was employed by the Company for 42 years, the Board of Directors voted to award him a $31,500 retirement bonus, consistent with that provided to all other retired employees. This amount remained outstanding at March 31, 2014, and was included in post-retirement benefits. | |
On May 9, 2010, the Board of Directors terminated the retirement agreement, options, retirement bonus, and any outstanding directors’ fees due Mr. El Khalidi; however, due to the pending litigation discussed in Note 15, all amounts which have not met termination dates remain recorded until a resolution is achieved. |
INVESTMENT_IN_AL_MASANE_AL_KOB
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (AMAK) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract] | ' | ||||||||||||
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") | ' | ||||||||||||
13. INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (“AMAK”) | |||||||||||||
As of March 31, 2014, and December 31, 2013, we had a non-controlling equity interest of (35%) approximately $53.7 million and $54.1 million, respectively. This investment is accounted for under the equity method. There were no events or changes in circumstances that may have an adverse effect on the fair value of our investment in AMAK at March 31, 2014. | |||||||||||||
AMAK’s financial statements were prepared in the functional currency of AMAK which is the Saudi Riyal (SR). In June 1986 the SR was officially pegged to the U. S. Dollar (USD) at a fixed exchange rate of 1 USD to 3.75 SR. | |||||||||||||
The summarized results of operation and financial position for AMAK are as follows: | |||||||||||||
Results of Operations | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Thousands of Dollars) | |||||||||||||
Sales | $ | 267 | $ | 31,162 | $ | - | |||||||
Gross Profit | 639 | 9,906 | - | ||||||||||
General, administrative and other expenses | 2,588 | 2,786 | 577 | ||||||||||
Net Income (loss) | $ | (1,949 | ) | $ | 7,120 | $ | (577 | ) | |||||
Financial Position | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Thousands of Dollars) | |||||||||||||
Current assets | $ | 41,050 | $ | 32,923 | |||||||||
Noncurrent assets | 264,431 | 264,997 | |||||||||||
Total assets | $ | 305,481 | $ | 297,920 | |||||||||
Current liabilities | $ | 27,565 | $ | 22,497 | |||||||||
Long term liabilities | 80,268 | 75,826 | |||||||||||
Shareholders' equity | 197,648 | 199,597 | |||||||||||
$ | 305,481 | $ | 297,920 | ||||||||||
The equity in the income or loss of AMAK reflected on the consolidated statement of income for the quarters ended March 31, 2014, and 2013, is comprised of the following: | |||||||||||||
2014 | 2013 | ||||||||||||
(Thousands of Dollars) | |||||||||||||
Company’s share of income (loss) reported by AMAK | $ | (687 | ) | $ | 2,627 | ||||||||
Amortization of difference between Company’s investment in AMAK | |||||||||||||
and Company’s share of net assets of AMAK | 337 | 337 | |||||||||||
Equity in earnings of AMAK | $ | (350 | ) | $ | 2,964 | ||||||||
At December 31, 2013, we had an outstanding advance to AMAK of approximately $0.5 million for interim funding on a short term basis. The amount was outstanding at March 31, 2014; however, the entire balance owed was paid in the second quarter of 2014. | |||||||||||||
See our Annual Report on Form 10-K for the year ended December 31, 2013, for additional information. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2014 | |
RELATED PARTY TRANSACTIONS [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
14. RELATED PARTY TRANSACTIONS | |
Legal fees of approximately $46,000 and $27,000 were incurred during the three months ended March 31, 2014, and 2013, respectively, to the law firm of Germer Gertz, LLP of which Charles W. Goehringer, Jr. is a minority partner. Mr. Goehringer acts as corporate counsel for the Company. | |
Ghazi Sultan, a Company director, was paid $35,000 during the three months ended March 31, 2014, and 2013, for serving as the Company’s Saudi branch representative. | |
Consulting fees of approximately $21,000 and $20,000 were incurred during the three months ended March 31, 2014, and 2013, respectively, from IHS Global FZ LLC of which Company Director Gary K. Adams holds the position of Chief Advisor – Chemicals. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
15. COMMITMENTS AND CONTINGENCIES | |
Guarantees – | |
South Hampton, in 1977, guaranteed a $160,000 note payable of a limited partnership in which it has a 19% interest. Included in Accrued Liabilities at March 31, 2014, and 2013, is $66,570 related to this guaranty. | |
On October 24, 2010, we executed a limited Guarantee in favor of the Saudi Industrial Development Fund (“SIDF”) whereby the Company agreed to guaranty up to 41% of the SIDF loan to AMAK in the principal amount of 330,000,000 Saudi Riyals (US$88,000,000) (the “Loan”). The term of the loan is through June 2019. As a condition of the Loan, SIDF required all shareholders of AMAK to execute personal or corporate Guarantees; as a result, our guarantee is for approximately 135,300,000 Saudi Riyals (US$36,080,000). The loan was necessary to complete construction of the AMAK facilities and to provide working capital needs. We received no consideration in connection with extending the guarantee and did so to maintain and enhance the value of the investment. | |
Litigation - | |
On May 9, 2010, after numerous attempts to resolve certain issues with Mr. Hatem El Khalidi, the Board of Directors terminated the retirement agreement, options, retirement bonuses, and all outstanding directors’ fees due to Mr. El Khalidi, former CEO, President and Director of the Company. In June 2010 Mr. El Khalidi filed suit against the Company in the labor courts of Saudi Arabia alleging additional compensation owed to him for holidays and overtime. The Company believes that the claims are unsubstantiated and continues to vigorously defend the case. | |
In September 2010 Mr. El Khalidi threatened suit against the Company in the U.S. alleging breach of contract under the above agreements and other claims. In late 2010 the Company filed suit against Mr. El Khalidi in the United States District Court in the Eastern District of Texas, Beaumont Division, seeking a declaratory judgment that all monies allegedly owed to Mr. El Khalidi are terminated (the “Federal Court Case”). On March 21, 2011, Mr. El Khalidi filed suit against the Company in the 14th Judicial District Court of Dallas County, Texas for breach of contract and defamation (the “State Court Case”). On July 1, 2011, the Company and Mr. El Khalidi entered into an agreement to dismiss the Federal Court Case and transfer venue for the State Court Case from Dallas County, Texas to Hardin County, Texas. Pursuant to this agreement, the Federal Court Case was dismissed on July 13, 2011, and the State Court Case was transferred to the 88th Judicial Court of Hardin County, Texas on July 15, 2011. On July 24, 2013, the 88th Judicial District Court of Hardin County, Texas dismissed all claims and counterclaims for want of prosecution. Mr. El Khalidi subsequently filed a notice of intent to appeal the dismissal with the Ninth Court of Appeals of Texas. | |
Liabilities of approximately $1.1 million remain recorded, and the options will continue to accrue in accordance with their own terms until all matters are resolved. | |
On September 14, 2010, South Hampton received notice of a lawsuit filed in the 58th Judicial District Court of Jefferson County, Texas which was subsequently transferred to the 11th Judicial District Court of Harris County, Texas. The suit alleges that the plaintiff became ill from exposure to asbestos. There are approximately 44 defendants named in the suit. South Hampton has placed its insurers on notice of the claim and plans to vigorously defend the case. | |
On December 20, 2010, South Hampton received notice of a lawsuit filed in the 88th Judicial District Court of Hardin County, Texas. The suit alleges that the plaintiff sustained injuries when he fell off his employer’s truck while in South Hampton’s facility. On February 26, 2014, South Hampton’s insurer settled the case. | |
No accruals have been recorded for these last 2 claims. We are involved in various claims and lawsuits incidental to our business. | |
Environmental Remediation - | |
In 2008 we learned of a claim by the U.S. Bureau of Land Management (“BLM”) against World Hydrocarbons, Inc. for contamination of real property owned by the BLM north of and immediately adjacent to the processing mill situated on property owned by Pioche Ely Valley Mines, Inc. (“PEVM”). The BLM’s claim alleged that mine tailings from the processing mill containing lead and arsenic migrated onto BLM property during the first half of the twentieth century. World Hydrocarbons, Inc. responded to the BLM by stating that it does not own the mill and that PEVM is the owner and responsible party. PEVM subsequently retained an environmental consultant and a local contractor to assist with the cleanup. In June and July 2013 the contractor excavated and transported tailings from BLM property and other surrounding properties to an impoundment area located on PEVM property. PEVM completed the cleanup during the first quarter of 2014, and the contractor demobilized from the site. PEVM is working to receive a no-further-action letter (NFA), or equivalent, from BLM. The environmental consultant submitted a report to the Nevada Division of Environmental Protection on the entire removal project including a neighbor’s adjoining property, and PEVM received an NFA on October 30, 2013. We agreed to advance approximately $250,000 to PEVM for payment of the contractor and in return, PEVM will transfer interest in selected patented mining claims of equivalent value to the Company. An accrual for $350,000 was recorded by PEVM in 2010 and $171,000 remained outstanding at March 31, 2014. |
TRADE_RECEIVABLES_Tables
TRADE RECEIVABLES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
TRADE RECEIVABLES [Abstract] | ' | ||||||||
Trade Receivables | ' | ||||||||
Trade receivables, net, at March 31, 2014, and December 31, 2013, consisted of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(thousands of dollars) | |||||||||
Trade receivables | $ | 24,659 | $ | 22,279 | |||||
Less allowance for doubtful accounts | (210 | ) | (210 | ) | |||||
Trade receivables, net | $ | 24,449 | $ | 22,069 |
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories include the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(thousands of dollars) | |||||||||
Raw material | $ | 2,500 | $ | 2,403 | |||||
Petrochemical products | 9,477 | 9,660 | |||||||
Total inventory | $ | 11,977 | $ | 12,063 |
PLANT_PIPELINE_AND_EQUIPMENT_T
PLANT, PIPELINE AND EQUIPMENT (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
PLANT, PIPELINE AND EQUIPMENT [Abstract] | ' | ||||||||
Plant, Pipeline and Equipment | ' | ||||||||
Plant, pipeline and equipment at March 31, 2014, and December 31, 2013, consisted of the following: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
(thousands of dollars) | |||||||||
Platinum catalyst | $ | 1,612 | $ | 1,612 | |||||
Land | 1,577 | 1,577 | |||||||
Plant, pipeline and equipment | 72,533 | 71,115 | |||||||
Construction in progress | 1,123 | 824 | |||||||
Total plant, pipeline and equipment | 76,845 | 75,128 | |||||||
Less accumulated depreciation and amortization | (34,616 | ) | (33,203 | ) | |||||
Plant, pipeline and equipment, net | $ | 42,229 | $ | 41,925 |
NET_INCOME_PER_COMMON_SHARE_AT1
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO. [Abstract] | ' | ||||||||||||||||||||||||
Net Income Per Common Share | ' | ||||||||||||||||||||||||
The following table (in thousands, except per share amounts) sets forth the computation of basic and diluted net income per share attributable to Arabian American Development Co. for the three months ended March 31, 2014, and 2013, respectively. | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||
Per Share | Per Share | ||||||||||||||||||||||||
Income | Shares | Amount | Income | Shares | Amount | ||||||||||||||||||||
Basic Net Income per Share: | |||||||||||||||||||||||||
Net Income Attributable to Arabian American Development Co. | $ | 2,599 | 24,151 | $ | 0.11 | $ | 4,786 | 24,105 | $ | 0.2 | |||||||||||||||
Dilutive stock options outstanding | 767 | 553 | |||||||||||||||||||||||
Diluted Net Income per Share: | |||||||||||||||||||||||||
Net Income Attributable to Arabian American Development Co. | $ | 2,599 | 24,918 | $ | 0.1 | $ | 4,786 | 24,658 | $ | 0.19 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis | ' | ||||||||||||||||
The following items are measured at fair value on a recurring basis subject to disclosure requirements of ASC Topic 820 at March 31, 2014, and December 31, 2013: | |||||||||||||||||
Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
31-Mar-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
(thousands of dollars) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Interest rate swap | $ | 495 | - | $ | 495 | - | |||||||||||
Fair Value Measurements Using | |||||||||||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
(thousands of dollars) | |||||||||||||||||
Liabilities: | |||||||||||||||||
Interest Rate Swap | $ | 563 | $ | - | $ | 563 | $ | - | |||||||||
Commodity financial instruments | 48 | 48 |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
DERIVATIVE INSTRUMENTS [Abstract] | ' | ||||||||
Realized And Unrealized Gains On Derivatives | ' | ||||||||
The following tables detail (in thousands) the impact the agreements had on the financial statements: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Unrealized gain (loss) | $ | (48 | ) | $ | - | ||||
Realized gain (loss) | 87 | - | |||||||
Net gain (loss) | $ | 39 | $ | - | |||||
Fair Value of Derivative Assets | ' | ||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Fair value of derivative liability | $ | - | $ | 48 | |||||
Impact of Interest Rate Swap on Other Comprehensive Loss | ' | ||||||||
The following tables detail (in thousands) the impact the agreement had on the financial statements: | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Other Comprehensive Loss | |||||||||
Cumulative loss | $ | (495 | ) | $ | (808 | ) | |||
Deferred tax benefit | 173 | 283 | |||||||
Net cumulative loss | $ | (322 | ) | $ | (525 | ) | |||
Interest expense reclassified from other comprehensive loss | $ | 67 | $ | 78 | |||||
Fair Value of Derivative Liabilities | ' | ||||||||
March 31, 2014 | 31-Dec-13 | ||||||||
Fair value of interest rate swap - liability | $ | 495 | $ | 563 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||
Black-Scholes Option Valuation Assumptions | ' | ||||||||||||
The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions: | |||||||||||||
Expected volatility | 84% | ||||||||||||
Expected dividends | None | ||||||||||||
Expected term (in years) | 6.25 | ||||||||||||
Risk free interest rate | 1.95% | ||||||||||||
Summary Of Status Of Stock Option Awards | ' | ||||||||||||
A summary of the status of our stock option awards and warrants is presented below: | |||||||||||||
Number of StockOptions & Warrants | Weighted Average Exercise Price per Share | Weighted | |||||||||||
Average | |||||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Life | |||||||||||||
Outstanding at January 1, 2014 | 1,326,360 | $ | 4.75 | ||||||||||
Granted | 500,000 | 12.26 | |||||||||||
Exercised | (31,820 | ) | 2.86 | ||||||||||
Expired | -- | -- | |||||||||||
Cancelled | -- | -- | |||||||||||
Forfeited | -- | -- | |||||||||||
Outstanding at March 31, 2014 | 1,794,540 | $ | 6.87 | 7.3 | |||||||||
Exercisable at March 31, 2014 | 619,568 | $ | 4.43 | 6 |
INVESTMENT_IN_AL_MASANE_AL_KOB1
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (AMAK) (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY ("AMAK") [Abstract] | ' | ||||||||||||
Summarized Results of Operation and Financial Position for AMAK | ' | ||||||||||||
Results of Operations | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Thousands of Dollars) | |||||||||||||
Sales | $ | 267 | $ | 31,162 | $ | - | |||||||
Gross Profit | 639 | 9,906 | - | ||||||||||
General, administrative and other expenses | 2,588 | 2,786 | 577 | ||||||||||
Net Income (loss) | $ | (1,949 | ) | $ | 7,120 | $ | (577 | ) | |||||
Financial Position | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Thousands of Dollars) | |||||||||||||
Current assets | $ | 41,050 | $ | 32,923 | |||||||||
Noncurrent assets | 264,431 | 264,997 | |||||||||||
Total assets | $ | 305,481 | $ | 297,920 | |||||||||
Current liabilities | $ | 27,565 | $ | 22,497 | |||||||||
Long term liabilities | 80,268 | 75,826 | |||||||||||
Shareholders' equity | 197,648 | 199,597 | |||||||||||
$ | 305,481 | $ | 297,920 | ||||||||||
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation | ' | ||||||||||||
The equity in the income or loss of AMAK reflected on the consolidated statement of income for the quarters ended March 31, 2014, and 2013, is comprised of the following: | |||||||||||||
2014 | 2013 | ||||||||||||
(Thousands of Dollars) | |||||||||||||
Company’s share of income (loss) reported by AMAK | $ | (687 | ) | $ | 2,627 | ||||||||
Amortization of difference between Company’s investment in AMAK | |||||||||||||
and Company’s share of net assets of AMAK | 337 | 337 | |||||||||||
Equity in earnings of AMAK | $ | (350 | ) | $ | 2,964 |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
BASIS OF PRESENTATION [Abstract] | ' |
Number of operating segments | 1 |
Interest in Al Masane A1 Kobra (in hundredths) | 35.00% |
TRADE_RECEIVABLES_Details
TRADE RECEIVABLES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
TRADE RECEIVABLES [Abstract] | ' | ' |
Trade receivables | $24,659,000 | $22,279,000 |
Less allowance for doubtful accounts | -210,000 | -210,000 |
Trade receivables, net | 24,449,000 | 22,069,000 |
Trade receivables serving as collateral | $19,800,000 | $17,700,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
INVENTORIES [Abstract] | ' | ' |
Raw material | $2,500,000 | $2,403,000 |
Petrochemical products | 9,477,000 | 9,660,000 |
Total inventory | 11,977,000 | 12,063,000 |
Excess of current cost over LIFO value | 2,000,000 | 1,500,000 |
Collateral Inventory | 3,600,000 | 4,900,000 |
Products in transit | $6,500,000 | $4,400,000 |
PLANT_PIPELINE_AND_EQUIPMENT_D
PLANT, PIPELINE AND EQUIPMENT (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2008 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total plant, pipeline and equipment | $76,845,000 | ' | $75,128,000 | ' |
Less accumulated depreciation | -34,616,000 | ' | -33,203,000 | ' |
Plant, pipeline and equipment, net | 42,229,000 | ' | 41,925,000 | ' |
Term loan secured by plant, pipeline and equipment | 14,000,000 | ' | ' | 10,000,000 |
Amortization relating to the platinum catalyst | 21,067 | 9,558 | ' | ' |
Platinum catalyst [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total plant, pipeline and equipment | 1,612,000 | ' | 1,612,000 | ' |
Land [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total plant, pipeline and equipment | 1,577,000 | ' | 1,577,000 | ' |
Plant, pipeline and equipment [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total plant, pipeline and equipment | 72,533,000 | ' | 71,115,000 | ' |
Construction in progress [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Total plant, pipeline and equipment | $1,123,000 | ' | $824,000 | ' |
NET_INCOME_PER_COMMON_SHARE_AT2
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO ARABIAN AMERICAN DEVELOPMENT CO (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic Net Income per Share [Abstract] | ' | ' |
Net Income Attributable to Arabian American Development Co. | $2,599 | $4,786 |
Weighted average number of shares outstanding, basic (in shares) | 24,151,000 | 24,105,000 |
Net Income Attributable to Arabian American Development Company (in dollars per share) | $0.11 | $0.20 |
Diluted Net Income per Share [Abstract] | ' | ' |
Net Income Attributable to Arabian American Development Co. | $2,599 | $4,786 |
Dilutive stock options outstanding (in shares) | 767,000 | 553,000 |
Weighted average number of shares outstanding, diluted (in shares) | 24,918,000 | 24,658,000 |
Net Income Attributable to Arabian American Development Company (in dollars per share) | $0.10 | $0.19 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Number of shares held in treasury by an outside party (in shares) | 300,000 | 300,000 |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | 619,568 | 446,009 |
LIABILITIES_AND_LONGTERM_DEBT_
LIABILITIES AND LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2008 | Sep. 30, 2007 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Short-term amount outstanding | $1,400,000 | $1,400,000 | ' | ' |
Long-term amount outstanding | 9,489,000 | 11,839,000 | ' | ' |
Supplier term of agreement | '7 years | ' | ' | ' |
Supplier term of agreement, elapsed | '6 years 9 months | ' | ' | ' |
Domestic Bank [Member] | Revolving Loan [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Long-term amount outstanding | 4,500,000 | 6,500,000 | ' | ' |
Original maximum borrowing capacity | 12,000,000 | ' | ' | ' |
Maximum borrowing capacity | 18,000,000 | ' | ' | ' |
Expiration date | 30-Jun-15 | ' | ' | ' |
Credit agreement sub limit available to support hedging program | 3,000,000 | ' | ' | ' |
Interest rate (in hundredths) | 3.25% | 3.25% | ' | ' |
Quarterly commitment fee on the unused portion of loan (in hundredths) | 0.25% | ' | ' | ' |
Available remaining borrowing capacity | 13,500,000 | ' | ' | ' |
Term loan [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Initial face amount of loan | ' | ' | ' | 10,000,000 |
Face amount | ' | ' | 14,000,000 | ' |
Maturity date | 31-Oct-18 | ' | ' | ' |
Short-term amount outstanding | 1,400,000 | 1,400,000 | ' | ' |
Long-term amount outstanding | 5,000,000 | 5,400,000 | ' | ' |
Interest rate on loan (in hundredths) | 3.25% | 3.25% | ' | ' |
Principal payments | 350,000 | ' | ' | ' |
Derivative amount of hedged item | ' | ' | ' | $10,000,000 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2008 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | |||
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | |||||
Liabilities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap | ' | ' | $495,000 | $563,000 | $0 | $0 | $495,000 | $563,000 | $0 | $0 |
Commodity financial instruments | ' | ' | ' | 48,000 | ' | 48,000 | ' | ' | ' | ' |
Term loan secured by plant, pipeline and equipment | $14,000,000 | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
DERIVATIVE INSTRUMENTS [Abstract] | ' | ' | ' |
Feedstock and natural gas usage to operating expenses (in hundredths) | 81.50% | 80.50% | ' |
Monthly feedstock requirements hedged, Maximum (in hundredths) | 40.00% | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Unrealized gain (loss) | $48,000 | $0 | ' |
Fair value of derivative liability | 0 | ' | 48,000 |
Realized and unrealized gains (losses) as a percentage of cost of sales and processing (in hundredths) | 0.00% | 0.00% | ' |
Net cumulative loss | 44,000 | 55,000 | ' |
Interest Rate Swaps [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Term loan in pay fixed, receive variable interest rate swap | 10,000,000 | ' | ' |
Term loan secured by plant, pipeline and equipment | 14,000,000 | ' | ' |
Notional amount | 4,000,000 | ' | ' |
Derivative, variable interest rate (in hundredths) | 5.83% | ' | ' |
Cumulative loss | -495,000 | -808,000 | ' |
Deferred tax benefit | 173,000 | 283,000 | ' |
Net cumulative loss | -322,000 | -525,000 | ' |
Interest expense reclassified from other comprehensive loss | 67,000 | 78,000 | ' |
Fair value of interest rate swap - liability | 495,000 | ' | 563,000 |
Cash flow hedge gain (loss) to be reclassified within twelve months | 229,000 | ' | ' |
Not Designated as Hedging Instrument [Member] | Commodity Financial Instruments [Member] | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Unrealized gain (loss) | -48,000 | 0 | ' |
Realized gain | 87,000 | 0 | ' |
Net gain | $39,000 | $0 | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Feb. 21, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options [Member] | Stock Options [Member] | Director [Member] | Director [Member] | Mr. Hatem El Khalidi [Member] | Officer and Key Employees [Member] | Officer and Key Employees [Member] | |||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | |||||
Fair value of the warrants granted calculated using the Black-Scholes valuation model, Assumptions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (in hundredths) | ' | ' | ' | 84.00% | ' | ' | ' | ' | ' |
Expected dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term (in years) | ' | ' | ' | '6 years 3 months | ' | ' | ' | ' | ' |
Risk free interest rate (in hundredths) | ' | ' | ' | 1.95% | ' | ' | ' | ' | ' |
Stock Options and Warrants [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period (in shares) | ' | ' | ' | 1,326,360 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 500,000 | 500,000 | ' | ' | ' | ' | ' |
Vesting percentage (in hundredths) | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | -31,820 | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Outstanding at end of period (in shares) | ' | ' | ' | 1,794,540 | ' | ' | ' | ' | ' |
Exercisable, end of period (in shares) | ' | ' | ' | 619,568 | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Per Share [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period (in dollars per share) | ' | ' | ' | $4.75 | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | $12.26 | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | $2.86 | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | ' | $0 | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | $0 | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | $0 | ' | ' | ' | ' | ' |
Outstanding at end of period (in dollars per share) | ' | ' | ' | $6.87 | ' | ' | ' | ' | ' |
Exercisable, end of period (in dollars per share) | ' | ' | ' | $4.43 | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Life [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, weighted average remaining contractual life | ' | ' | ' | '7 years 3 months 18 days | ' | ' | ' | ' | ' |
Exercisable, weighted average remaining contractual life | ' | ' | ' | '6 years | ' | ' | ' | ' | ' |
Options awarded, term (in years) | ' | ' | '10 | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' | ' | ' | ' | '4 years | ' |
Compensation expense | 425,000 | 267,000 | ' | 123,000 | ' | ' | 24,000 | 150,000 | 119,000 |
Directors fees and expenses related to options to purchase shares | ' | ' | ' | ' | 94,000 | 94,000 | ' | ' | ' |
Common Stock, issued (in shares) | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Investor relations expense | $33,000 | $30,000 | ' | ' | ' | ' | ' | ' | ' |
POSTRETIREMENT_OBLIGATIONS_Det
POST-RETIREMENT OBLIGATIONS (Details) (Postretirement Benefits [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2007 | |
Postretirement Benefits [Member] | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' |
Monthly post retirement benefit | $6,000 | ' |
Monthly post retirement benefit payable after death to spouse | 4,000 | ' |
Additional benefits accrued | ' | 382,000 |
Outstanding liability | 929,000 | ' |
Retirement bonus outstanding | 31,500 | ' |
Number of years service | '42 years | ' |
Retirement bonus per service year | $750 | ' |
INVESTMENT_IN_AL_MASANE_AL_KOB2
INVESTMENT IN AL MASANE AL KOBRA MINING COMPANY (AMAK) (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | AMAK [Member] | AMAK [Member] | AMAK [Member] | AMAK [Member] | AMAK [Member] | AMAK [Member] | AMAK [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | SAR | USD ($) | USD ($) | ||||
Investment in Al Masane Al Kobra Mining Company Amak [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in AMAK | ' | ' | ' | ' | ' | ' | ' | ' | $53,700,000 | $54,100,000 |
Exchange rate | ' | ' | ' | ' | ' | ' | ' | 3.75 | ' | ' |
Outstanding advance to AMAK | 536,000 | ' | 536,000 | ' | ' | ' | ' | ' | ' | 500,000 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage investment in AMAK (in hundredths) | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' |
Company's share of income (loss) reported by AMAK | -687,000 | 2,627,000 | ' | -1,949,000 | 7,120,000 | -577,000 | ' | ' | ' | ' |
Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK | 337,000 | 337,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of AMAK | -350,000 | 2,964,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | 267,000 | 31,162,000 | 0 | ' | ' | ' | ' |
Gross Profit | ' | ' | ' | 639,000 | 9,906,000 | 0 | ' | ' | ' | ' |
General, administrative and other expenses | ' | ' | ' | 2,588,000 | 2,786,000 | 577,000 | ' | ' | ' | ' |
Net Income (loss) | -687,000 | 2,627,000 | ' | -1,949,000 | 7,120,000 | -577,000 | ' | ' | ' | ' |
Financial Position [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | 41,050,000 | ' | ' | 32,923,000 | ' | ' | ' |
Noncurrent assets | ' | ' | ' | 264,431,000 | ' | ' | 264,997,000 | ' | ' | ' |
Total assets | ' | ' | ' | 305,481,000 | ' | ' | 297,920,000 | ' | ' | ' |
Current liabilities | ' | ' | ' | 27,565,000 | ' | ' | 22,497,000 | ' | ' | ' |
Long term liabilities | ' | ' | ' | 80,268,000 | ' | ' | 75,826,000 | ' | ' | ' |
Shareholders' equity | ' | ' | ' | 197,648,000 | ' | ' | 199,597,000 | ' | ' | ' |
Total liabilities and Shareholders' equity | ' | ' | ' | $305,481,000 | ' | ' | $297,920,000 | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Germer Gertz LLP [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Legal fees | $46,000 | $27,000 |
Director [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Directors fees | 35,000 | 35,000 |
Consulting fees | $21,000 | $20,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 24, 2010 | Oct. 24, 2010 |
USD ($) | USD ($) | Contamination of Real Property [Member] | Threatened Litigation [Member] | Notes Payable Guarantee [Member] | Notes Payable Guarantee [Member] | Saudi Industrial Development Fund Limited Guarantee [Member] | Saudi Industrial Development Fund Limited Guarantee [Member] | |
USD ($) | Exposure to Asbestos [Member] | USD ($) | USD ($) | USD ($) | SAR | |||
Defendant | ||||||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantor obligations | ' | ' | ' | ' | $160,000 | ' | ' | ' |
Limited partnership ownership interest (in hundredths) | ' | ' | ' | ' | 19.00% | ' | ' | ' |
Accrued liabilities current | 2,498,000 | 3,060,000 | ' | ' | 66,570 | 66,570 | ' | ' |
Loan guarantee, maximum (in hundredths) | ' | ' | ' | ' | ' | ' | 41.00% | 41.00% |
Principal amount of loan guaranteed | ' | ' | ' | ' | ' | ' | 88,000,000 | 330,000,000 |
Amount of maximum exposure | ' | ' | ' | ' | ' | ' | 36,080,000 | 135,300,000 |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual recorded value | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Number of defendants | ' | ' | ' | 44 | ' | ' | ' | ' |
Site Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Advance payment to be made to contractor | 250,000 | ' | ' | ' | ' | ' | ' | ' |
Accrual for environmental remediation | $171,000 | ' | $350,000 | ' | ' | ' | ' | ' |