Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 26, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | NEWPARK RESOURCES INC | |
Entity Central Index Key | 71,829 | |
Trading Symbol | nr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 84,519,550 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 93,148 | $ 107,138 |
Receivables, net | 177,484 | 206,364 |
Inventories | 144,876 | 163,657 |
Prepaid expenses and other current assets | 31,198 | 29,219 |
Total current assets | 446,706 | 506,378 |
Property, plant and equipment, net | 311,220 | 307,632 |
Goodwill | 18,620 | 19,009 |
Other intangible assets, net | 5,985 | 11,051 |
Deferred tax assets | 3,684 | 1,821 |
Other assets | 3,808 | 3,002 |
Total assets | 790,023 | 848,893 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Short-term debt | 10,193 | 7,382 |
Accounts payable | 50,357 | 72,211 |
Accrued liabilities | 36,680 | 45,835 |
Total current liabilities | 97,230 | 125,428 |
Long-term debt, less current portion | 160,460 | 171,211 |
Deferred tax liabilities | 28,392 | 26,368 |
Other noncurrent liabilities | 6,254 | 5,627 |
Total liabilities | 292,336 | 328,634 |
Commitments and contingencies (Note 8) | ||
Stockholders' Equity | ||
Common stock, $0.01 par value, 200,000,000 shares authorized and 99,662,742 and 99,377,391 shares issued, respectively | 997 | 994 |
Paid-in capital | 537,108 | 533,746 |
Accumulated other comprehensive loss | (57,407) | (58,276) |
Retained earnings | 143,756 | 171,788 |
Treasury stock, at cost; 15,240,397 and 15,302,345 shares, respectively | (126,767) | (127,993) |
Total stockholders’ equity | 497,687 | 520,259 |
Total liabilities and stockholders' equity | $ 790,023 | $ 848,893 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 99,662,742 | 99,377,391 |
Treasury stock, shares (in shares) | 15,240,397 | 15,302,345 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Income (Loss) [Abstract] | ||||
Revenues | $ 115,315 | $ 163,644 | $ 229,859 | $ 372,108 |
Cost of revenues | 102,803 | 142,155 | 214,376 | 318,789 |
Selling, general and administrative expenses | 21,435 | 23,963 | 44,927 | 49,941 |
Other operating income, net | (713) | (792) | (2,409) | (1,068) |
Impairments and other charges | 6,925 | 0 | 6,925 | 0 |
Operating income (loss) | (15,135) | (1,682) | (33,960) | 4,446 |
Foreign currency exchange (gain) loss | (746) | (410) | (1,201) | 1,154 |
Interest expense, net | 3,022 | 2,224 | 5,103 | 4,479 |
Gain on extinguishment of debt | 0 | 0 | (1,894) | 0 |
Loss from operations before income taxes | (17,411) | (3,496) | (35,968) | (1,187) |
Provision (benefit) for income taxes | (3,507) | 758 | (8,764) | 2,074 |
Net loss | $ (13,904) | $ (4,254) | $ (27,204) | $ (3,261) |
Loss per common share - basic (in dollars per share) | $ (0.17) | $ (0.05) | $ (0.33) | $ (0.04) |
Loss per common share - diluted (in dollars per share) | $ (0.17) | $ (0.05) | $ (0.33) | $ (0.04) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (13,904) | $ (4,254) | $ (27,204) | $ (3,261) |
Foreign currency translation adjustments | (3,765) | 1,319 | 869 | (15,890) |
Comprehensive loss | $ (17,669) | $ (2,935) | $ (26,335) | $ (19,151) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock |
Beginning balance at Dec. 31, 2014 | $ 625,458 | $ 992 | $ 521,228 | $ (31,992) | $ 262,616 | $ (127,386) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (3,261) | (3,261) | ||||
Employee stock options, restricted stock and employee stock purchase plan | (1,101) | 2 | (507) | (596) | ||
Stock-based compensation expense | 6,510 | 6,510 | ||||
Income tax effect, net, of employee stock related activity | (396) | (396) | ||||
Foreign currency translation adjustments | (15,890) | (15,890) | ||||
Other | (870) | (870) | ||||
Ending balance at Jun. 30, 2015 | 610,450 | 994 | 525,965 | (47,882) | 259,355 | (127,982) |
Beginning balance at Dec. 31, 2015 | 520,259 | 994 | 533,746 | (58,276) | 171,788 | (127,993) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (27,204) | (27,204) | ||||
Employee stock options, restricted stock and employee stock purchase plan | (798) | 3 | (1,199) | (828) | 1,226 | |
Stock-based compensation expense | 5,613 | 5,613 | ||||
Income tax effect, net, of employee stock related activity | (1,052) | (1,052) | ||||
Foreign currency translation adjustments | 869 | 869 | ||||
Ending balance at Jun. 30, 2016 | $ 497,687 | $ 997 | $ 537,108 | $ (57,407) | $ 143,756 | $ (126,767) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (27,204) | $ (3,261) |
Adjustments to reconcile net loss to net cash provided by operations: | ||
Impairments and other non-cash charges | 8,617 | 0 |
Depreciation and amortization | 19,201 | 21,069 |
Stock-based compensation expense | 5,613 | 6,510 |
Provision for deferred income taxes | 546 | (3,205) |
Net provision for doubtful accounts | 1,582 | 1,033 |
Gain on sale of assets | (1,841) | (528) |
Gain on extinguishment of debt | (1,894) | 0 |
Change in assets and liabilities: | ||
Decrease in receivables | 18,006 | 113,746 |
Decrease in inventories | 18,981 | 2,804 |
Increase in other assets | (2,204) | (2,461) |
Decrease in accounts payable | (20,720) | (38,744) |
Increase (decrease) in accrued liabilities and other | 1,143 | (15,166) |
Net cash provided by operating activities | 19,826 | 81,797 |
Cash flows from investing activities: | ||
Capital expenditures | (26,652) | (34,313) |
Increase in restricted cash | (22) | 0 |
Proceeds from sale of property, plant and equipment | 2,553 | 1,144 |
Net cash used in investing activities | (24,121) | (33,169) |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 4,268 | 4,718 |
Payments on lines of credit | (5,034) | (5,949) |
Purchase of senior notes | (9,206) | 0 |
Debt issuance costs | (1,707) | (1,697) |
Other financing activities | 2,170 | (1,487) |
Proceeds from employee stock plans | 4 | 359 |
Purchases of treasury stock | (1,093) | (1,769) |
Net cash used in financing activities | (10,598) | (5,825) |
Effect of exchange rate changes on cash | 903 | (4,598) |
Net increase (decrease) in cash and cash equivalents | (13,990) | 38,205 |
Cash and cash equivalents at beginning of year | 107,138 | 85,052 |
Cash and cash equivalents at end of period | 93,148 | 123,257 |
Cash paid (received) for: | ||
Income taxes (net of refunds) | (22,010) | 9,137 |
Interest | $ 4,143 | $ 4,412 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Newpark Resources, Inc. and our wholly-owned subsidiaries, which we refer to as “we,” “our” or “us,” have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission (“SEC”), and do not include all information and footnotes required by the accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 . Our fiscal year end is December 31 and our second quarter represents the three-month period ended June 30 and our first half represents the six -month period ended June 30 . The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire year. Unless otherwise stated, all currency amounts are stated in U.S. dollars. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary to present fairly our financial position as of June 30, 2016 and our results of operations for the three and six months ended June 30, 2016 and 2015 and our cash flows for the six months ended June 30, 2016 and 2015 . All adjustments are of a normal recurring nature. Our balance sheet at December 31, 2015 is derived from the audited consolidated financial statements at that date. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For further information, see Note 1 in our Annual Report on Form 10-K for the year ended December 31, 2015 . Change in Accounting Estimates In 2016, we revised our estimates of the useful lives and residual values of certain of our composite mats included in rental fleet fixed assets within the Mats and Integrated Services segment. We now estimate that certain composite mats which were originally estimated to have a useful life of 7 years with zero residual value will have estimated useful lives ranging from 10 to 12 years with an estimated residual value of 20% . These changes in estimates were recognized prospectively beginning January 1, 2016 resulting in a reduction in depreciation expense for the Mats and Integrated Services segment of approximately $1.5 million and $3.1 million for the three and six months ended June 30, 2016 , respectively. We expect these changes to have a similar effect on quarterly results going forward. New Accounting Pronouncements Standard adopted in 2016 In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance that eliminates the requirement to restate prior periods to reflect adjustments made to provisional amounts recognized in a business combination. The new guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The new guidance was effective for us prospectively in the first quarter of 2016; however, the adoption did not have any effect on our consolidated financial statements. Standards not yet adopted In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the new guidance by one year and provided entities the option to early adopt the new guidance. The new guidance is effective for us in the first quarter of 2018 with early adoption permitted in the first quarter of 2017. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the impact of these amendments on our consolidated financial statements, including the adoption and transition alternatives. In July 2015, the FASB issued updated guidance that simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance is effective prospectively for us in the first quarter of 2017 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In February 2016, the FASB issued updated guidance regarding accounting for leases. The new accounting standard provides principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognize both assets and liabilities arising from financing and operating leases. The classification as either a financing or operating lease will determine whether lease expense is recognized based on an effective interest method basis or on a straight-line basis over the term of the lease, respectively. The new guidance is effective for us in the first quarter of 2019 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In March 2016, the FASB issued updated guidance that simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification of excess tax benefits on the statement of cash flows. The new guidance is effective for us in the first quarter of 2017 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents the reconciliation of the numerator and denominator for calculating earnings (loss) per share: Second Quarter First Half (In thousands, except per share data) 2016 2015 2016 2015 Numerator Net loss - basic $ (13,904 ) $ (4,254 ) $ (27,204 ) $ (3,261 ) Assumed conversions of Senior Notes — — — — Adjusted net loss - diluted $ (13,904 ) $ (4,254 ) $ (27,204 ) $ (3,261 ) Denominator Weighted-average common shares outstanding - basic 83,457 82,529 83,358 82,414 Dilutive effect of stock options and restricted stock awards — — — — Dilutive effect of Senior Notes — — — — Weighted-average common shares outstanding - diluted 83,457 82,529 83,358 82,414 Net loss per common share Basic $ (0.17 ) $ (0.05 ) $ (0.33 ) $ (0.04 ) Diluted $ (0.17 ) $ (0.05 ) $ (0.33 ) $ (0.04 ) Stock options and restricted stock excluded from calculation of diluted earnings per share because anti-dilutive for the period 7,220 2,911 6,742 2,685 For all periods presented, we excluded all potentially dilutive stock options and restricted stock as well as the assumed conversion of the Senior Notes in calculating diluted earnings per share as the effect was anti-dilutive due to the net losses incurred for these periods. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the second quarter of 2016 , the Compensation Committee of our Board of Directors approved equity-based compensation to executive officers and other key employees. The awards included a grant of 1,463,994 shares of restricted stock units which will vest in equal installments over a three -year period. Non-employee directors received shares of restricted stock totaling 212,961 shares, which will vest in full on the earlier of the day prior to the next annual meeting of stockholders following the grant date or the first anniversary of the grant date. The weighted average fair value on the date of grant for all of these awards was $4.32 per share. Additionally, 1,242,856 stock options were granted to executive officers and other key employees at an exercise price of $4.32 per share, which provides for equal vesting over a three -year period with a term of ten years. The estimated fair value of the stock options on the grant date using the Black-Scholes option-pricing model was $1.97 . The assumptions used in the Black-Scholes model included a risk-free interest rate of 1.38% , expected life of 5.22 years , and expected volatility of 50.49% . The Compensation Committee also approved performance-based awards during the second quarter of 2016 to executive officers. The performance-based restricted stock units will be settled in shares of common stock and will be based on the relative ranking of the Company’s total shareholder return (“TSR”) as compared to the TSR of the Company’s designated peer group for 2016 . The performance period began June 1, 2016 and ends May 31, 2019 , with the ending TSR price being equal to the average closing price of our shares over the 30-calendar days ending May 31, 2019 . A total of 230,790 performance-based restricted stock units were granted with the payout of shares for each executive ranging from 0% to 150% of target. The estimated fair value of each restricted stock unit at the date of grant using the Monte Carlo valuation model was $5.18 . The valuation was done as of the date of grant, which included a risk-free interest rate of 0.95% , the average closing price for our shares over the 30-calendar days ending May 16, 2016 of $4.69 and expected volatility of 46.89% . |
Repurchase Program
Repurchase Program | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Repurchase Program | Repurchase Program In April 2013, our Board of Directors approved a share repurchase program that authorizes the Company to purchase up to $50.0 million of its outstanding shares of common stock. This authorization was subsequently increased to $100.0 million in February 2014. In September 2015, our Board of Directors expanded the repurchase program to include the repurchase of our convertible Senior Notes (as defined in Note 7 below), in addition to outstanding shares of common stock. The repurchase program has no specific term. The Company may repurchase shares or convertible Senior Notes in the open market or as otherwise determined by management, subject to certain limitations under the ABL Facility (as defined in Note 7 below) and other factors. Repurchases are expected to be funded from operating cash flows and available cash on-hand. As part of the share repurchase program, the Company’s management has been authorized to establish trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934. There were no shares repurchased during the first half of 2016 and 2015 . In February 2016, we repurchased $11.2 million of our convertible Senior Notes in the open market for $9.2 million . This repurchase was made under our existing Board authorized repurchase program discussed above. As of June 30, 2016 , we had $33.5 million of authorization remaining under the program. |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: (In thousands) June 30, 2016 December 31, 2015 Gross trade receivables $ 143,277 $ 159,119 Allowance for doubtful accounts (8,442 ) (7,189 ) Net trade receivables 134,835 151,930 Income tax receivables 20,129 32,600 Other receivables 22,520 21,834 Total receivables, net $ 177,484 $ 206,364 At June 30, 2016 , income tax receivables includes approximately $16.5 million related to our plan to request a refund for the carryback of U.S. federal tax losses expected in 2016 . At December 31, 2015 , income tax receivables included approximately $29.0 million related to our decision to request a refund for the carryback of U.S. federal tax losses incurred in 2015 , which has substantially been received in 2016. Other receivables includes $10.5 million and $10.4 million for value added, goods and service taxes related to foreign jurisdictions and other tax related receivables as of June 30, 2016 and December 31, 2015 , respectively. In addition, other receivables includes $8.0 million at June 30, 2016 and December 31, 2015 in connection with the March 2014 sale of the Environmental Services business that is held in escrow associated with transaction representations, warranties and indemnities. In December 2014, the buyer made certain claims for indemnification under the terms of the sale agreement, which defers the release of the escrow funds until such claims are resolved. Further discussion of the buyer’s claims and related litigation is contained in Note 8 below. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (In thousands) June 30, 2016 December 31, 2015 Raw materials: Drilling fluids $ 116,651 $ 133,934 Mats 1,376 657 Total raw materials 118,027 134,591 Blended drilling fluids components 24,270 25,343 Finished goods - mats 2,579 3,723 Total inventory $ 144,876 $ 163,657 Raw materials consist primarily of barite, chemicals, and other additives that are consumed in the production of our drilling fluid systems. Our blended drilling fluids components consist of base drilling fluid systems that have been either mixed internally at our mixing plants or purchased from third-party vendors. These base systems require raw materials to be added, as required to meet specified customer requirements. During the second quarter of 2016, we recognized a $0.6 million charge reported in cost of revenues to reduce the carrying value of diesel-based drilling fluid inventory in the Fluids Systems segment. The charge resulted from lower of cost or market adjustments primarily due to the decline in selling prices for our diesel-based drilling fluid products. |
Financing Arrangements and Fair
Financing Arrangements and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements and Fair Value of Financing Instruments | Financing Arrangements and Fair Value of Financial Instruments Financing arrangements consisted of the following: (In thousands) June 30, 2016 December 31, 2015 Senior Notes $ 161,321 $ 172,497 Debt issuance costs - Senior Notes (866 ) (1,296 ) Revolving Credit Facility — — ABL Facility — — Other 10,198 7,392 Total debt 170,653 178,593 Less: current portion of total debt (10,193 ) (7,382 ) Long-term debt $ 160,460 $ 171,211 Senior Notes. In September 2010, we issued $172.5 million of unsecured convertible senior notes (“Senior Notes”) that mature on October 1, 2017, of which, $161.3 million principal amount was outstanding at June 30, 2016 . The Senior Notes bear interest at a rate of 4.0% per year, payable semi-annually in arrears on April 1 and October 1 of each year. Holders may convert the Senior Notes at their option at any time prior to the close of business on the business day immediately preceding the October 1, 2017 maturity date. The conversion rate is initially 90.8893 shares of our common stock per $1,000 principal amount of Senior Notes (equivalent to an initial conversion price of $11.00 per share of common stock), subject to adjustment in certain circumstances. Upon conversion, the Senior Notes will be settled in shares of our common stock. We may not redeem the Senior Notes prior to their maturity date. In the first quarter of 2016, we repurchased $11.2 million of our Senior Notes in the open market for $9.2 million and recognized a net gain of $1.9 million reflecting the difference in the amount paid and the net carrying value of the extinguished debt, including debt issuance costs. Revolving Credit Facility. In March 2015, we entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) which provided for a $200.0 million revolving loan facility available for borrowings and letters of credit through March 2020. In December 2015, the Credit Agreement was amended, decreasing the revolving credit facility to $150.0 million and modifying certain financial covenants through the first quarter of 2017. Due to the continued decline in customer activity in the first quarter of 2016 and anticipated challenges in maintaining compliance with certain financial covenants, we terminated the Credit Agreement in May 2016 and replaced it with an asset-based revolving loan facility as discussed further below. As of the date of termination, we had no outstanding borrowings under the Credit Agreement. In the second quarter of 2016, we recognized charges of $1.1 million in interest expense for the write-off of debt issuance costs in connection with the termination. Asset-Based Loan Facility. In May 2016, we entered into an asset-based revolving credit agreement (the “ABL Facility”) which replaced the terminated Credit Agreement. The ABL Facility provides financing of up to $90.0 million available for borrowings (inclusive of letters of credit), which, subject to the conditions contained therein, can be increased to a maximum capacity of $150.0 million . The ABL Facility terminates on March 6, 2020; however, the ABL Facility has a springing maturity date that will accelerate the maturity of the credit facility to June 30, 2017 if, prior to such date, the Senior Notes have not either been repurchased, redeemed, converted and/or refinanced in full or the Company has not provided sufficient funds to an escrow agent to repay the Senior Notes in full on their maturity date. Borrowing availability under the ABL Facility is calculated based on the level of eligible domestic receivables, inventory, and beginning in January 2017, composite mats included in the rental fleet, net of reserves and limits on certain elements of the asset base. Availability associated with eligible rental mats will also be subject to maintaining a minimum consolidated fixed charge coverage ratio and a minimum level of operating income for the Mats and Integrated Services segment, as defined in the ABL Facility agreement. Following the execution of the ABL Facility, we completed all necessary administrative procedures including the securitization of collateral. As of June 30, 2016 , we had no borrowings outstanding under the ABL Facility with a total borrowing base availability of $50.6 million . Under the terms of the ABL Facility, we may elect to borrow at a variable interest rate plus an applicable margin based on either, (1) LIBOR subject to a floor of zero or (2) a base rate equal to the highest of: (a) the federal funds rate plus 50 basis points, (b) the prime rate of Bank of America, N.A. or (c) LIBOR, subject to a floor of zero , plus 100 basis points. The applicable margin ranges from 225 to 350 basis points for LIBOR borrowings, and 125 to 250 basis points with respect to base rate borrowings, based on our consolidated EBITDA, ratio of debt to consolidated EBITDA, and consolidated fixed charge coverage ratio, each as defined in the ABL Facility. As of June 30, 2016 , the applicable margin for borrowings under our ABL Facility is 350 basis points with respect to LIBOR borrowings and 250 basis points with respect to base rate borrowings. In addition, we are required to pay a commitment fee on the unused portion of the ABL Facility ranging from 37.5 to 62.5 basis points, based on the ratio of debt to consolidated EBITDA, as defined in the ABL Facility. The applicable commitment fee as of June 30, 2016 was 62.5 basis points. The ABL Facility is a senior secured obligation, secured by first liens on all of our U.S. tangible and intangible assets and a portion of the capital stock of our non-U.S. subsidiaries has also been pledged as collateral. The ABL Facility contains customary operating covenants and certain restrictions including, among other things, the incurrence of additional debt, liens, dividends, asset sales, investments, mergers, acquisitions, affiliate transactions, stock repurchases and other restricted payments such as the redemption, defeasance or refinancing of the Senior Notes. In addition, the ABL Facility contains customary events of default, including, without limitation, a failure to make payments under the facility, acceleration of more than $25.0 million of other indebtedness, certain bankruptcy events and certain change of control events. Other Debt. Our foreign subsidiaries, primarily those in Italy, Brazil and India, maintain local credit arrangements consisting primarily of lines of credit with several banks, which are renewed on an annual basis. We utilize local financing arrangements in our foreign operations in order to provide short-term local liquidity needs, as well as to reduce the net investment in foreign operations subject to foreign currency risk. Advances under these short-term credit arrangements are typically based on a percentage of the subsidiary’s accounts receivable or firm contracts with certain customers. Total outstanding balances under these arrangements and other domestic financing arrangements were $10.2 million and $7.4 million at June 30, 2016 and December 31, 2015 , respectively. At June 30, 2016 , we had letters of credit issued and outstanding which totaled $14.9 million that are collateralized by $16.5 million in restricted cash. Additionally, our foreign operations had $10.2 million outstanding in letters of credit and other guarantees, with certain letters of credit that are collateralized by $0.9 million in restricted cash. At June 30, 2016 , total restricted cash of $17.4 million was included in other current assets in the accompanying balance sheet. Our financial instruments include cash and cash equivalents, receivables, payables and debt. We believe the carrying values of these instruments, with the exception of our Senior Notes, approximated their fair values at June 30, 2016 and December 31, 2015 . The estimated fair value of our Senior Notes was $153.8 million at June 30, 2016 and $154.4 million at December 31, 2015 , based on quoted market prices at these respective dates. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of conducting our business, we become involved in litigation and other claims from private party actions, as well as judicial and administrative proceedings involving governmental authorities at the federal, state and local levels. Wage and Hour Litigation During the second quarter of 2014, a lawsuit was filed by Jesse Davida, a former employee, in Federal Court in Texas against Newpark Drilling Fluids LLC, alleging violations of the Fair Labor Standards Act (“FLSA”). The plaintiff seeks damages and penalties for the Company’s alleged failure to properly classify its field service employees as “non-exempt” under the FLSA and pay them on an hourly basis (including overtime). The plaintiff seeks recovery on his own behalf, and seeks certification of a class of similarly situated employees. The Court conditionally certified a class of plaintiffs as those working as fluid service technicians for Newpark Drilling Fluids for the prior three years. Notification was given to 658 current and former fluid service technician employees of Newpark regarding this litigation and those individuals were given the opportunity to “opt-in” to the Davida litigation. The opt-in period closed in early May of 2015 and a total of 91 individuals joined the Davida litigation. Counsel for the plaintiffs moved to add state law class action claims for current and former fluid service technicians that worked for Newpark Drilling Fluids in New York, North Dakota, Ohio and Pennsylvania. The Court granted the motion but gave Newpark the right to file a motion to dismiss these state law claims, and that motion is pending. At this point in the litigation, the parties began settlement discussions, resulting in the settlement agreement described below. A second case was filed by Josh Christensen in the fourth quarter of 2014 in Federal Court in Texas alleging that individuals treated as independent contractors should have been classified as employees and, as such, are entitled to assert claims for alleged violations of the FLSA (similar to the claims asserted in the Davida matter). Five additional plaintiffs joined this litigation after it was filed. In March of 2015, the Court denied the plaintiffs’ motion for conditional class certification. Counsel for the plaintiffs did not appeal that ruling and have now filed individual cases for each of the original opt-in plaintiffs plus two new plaintiffs, leaving a total of eight independent contractor cases pending. These cases are included in the settlement discussions described below. In the fourth quarter of 2015, the same counsel representing the plaintiffs in the Davida and Christiansen -related cases filed two additional individual FLSA cases on behalf of former fluid service technician employees. These cases are similar in nature to the Davida case discussed above and are included in the settlement discussions described below. Beginning in November 2015, we engaged in settlement discussions with counsel for the plaintiffs in the pending wage and hour litigation cases described above. Following mediation in January of 2016, the parties executed a settlement agreement in April 2016 to settle all of the pending matters, subject to a number of conditions, including approval by the Court in the Davida case, and the dismissal of the other FLSA cases ( Christiansen -related lawsuits and individual FLSA cases). Subject to these conditions, current and former fluid service technician employees that are eligible for the settlement will be notified of the pending resolution and given an opportunity to participate in the settlement. The amount paid to any eligible individual will vary based on a formula that takes into account the number of workweeks and salary for the individual during the time period covered by the settlement (which can vary based upon several factors). Any eligible individual that elects to participate in the settlement will release all wage and hour claims against the Company. As a result of the settlement negotiations, we recognized a $5.0 million charge in the fourth quarter of 2015 related to the pending resolution of these wage and hour litigation claims. We expect to fund the settlement amount with installment payments in the third and fourth quarters of 2016, subject to the conditions described above. The settlement fund will be administered by a third party who will make payments to eligible individuals that elect to participate in accordance with a formula incorporated into the settlement agreement. In addition, under the terms of the settlement agreement, if settlement funds remain after all payments are made to eligible individuals that elect to participate in the settlement, such excess amount will be shared by the participating individuals and Newpark Drilling Fluids. The amount of excess funds, if any, is not currently determinable. Escrow Claims Related to the Sale of the Environmental Services Business Under the terms of the March 2014 sale of our previous Environmental Services business to Ecoserv, LLC (“Ecoserv”), $8.0 million of the sales price was withheld and placed in an escrow account to satisfy claims for possible breaches of representations and warranties contained in the sale agreement. For the amount withheld in escrow, $4.0 million was scheduled for release to Newpark at each of the nine-month and 18-month anniversary of the closing. In December 2014, we received a letter from counsel for Ecoserv asserting that we had breached certain representations and warranties contained in the sale agreement; including failing to disclose service work performed on injection wells and increased barge rental costs. The letter indicated that Ecoserv expected the costs associated with these claims to exceed the escrow amount. Following a further exchange of letters, in July of 2015, we filed a declaratory judgment action against Ecoserv in state court in Harris County, Texas, seeking release of the escrow funds. Thereafter, Ecoserv filed a counterclaim seeking recovery of the escrow funds based on the alleged breach of representations and warranties. Ecoserv also alleges that we committed fraud in connection with the sale transaction. We believe there is no basis in the agreement or on the facts to support the claims asserted by Ecoserv and intend to vigorously defend our position, while pursuing release of the entire $8.0 million in escrow. The litigation remains in the discovery process. |
Segment Data
Segment Data | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data Summarized operating results for our reportable segments are shown in the following table (net of inter-segment transfers): Second Quarter First Half (In thousands) 2016 2015 2016 2015 Revenues Fluids systems $ 96,153 $ 140,344 $ 194,804 $ 312,246 Mats and integrated services 19,162 23,300 35,055 59,862 Total Revenues $ 115,315 $ 163,644 $ 229,859 $ 372,108 Operating Income (Loss) Fluids systems $ (11,924 ) $ (223 ) $ (27,131 ) $ (1,925 ) Mats and integrated services 3,989 6,555 7,725 22,202 Corporate office (7,200 ) (8,014 ) (14,554 ) (15,831 ) Operating Income (Loss) $ (15,135 ) $ (1,682 ) $ (33,960 ) $ 4,446 In response to the significant declines in industry activity in North America, we initiated cost reduction programs in the first quarter of 2015 including workforce reductions, reduced discretionary spending, and temporary salary freezes for substantially all employees, including executive officers, and have continued these efforts through the second quarter of 2016 . In September 2015, we also initiated a voluntary early retirement program with certain eligible employees in the United States for retirement dates ranging from the fourth quarter of 2015 through the third quarter of 2016. As a result of the continuing declines in activity in the first half of 2016 , we initiated further cost reduction actions including additional workforce reductions and beginning in March 2016, a temporary salary reduction for a significant number of North American employees, including executive officers, suspension of the Company’s matching contribution to the U.S. defined contribution plan as well as a reduction in cash compensation paid to our Board of Directors, in order to further align our cost structure to the current activity levels. As part of these cost reduction programs, we have eliminated substantially all contract positions and reduced our North American employee base by 613 (approximately 47% ) since December 31, 2014, including reductions of 177 and 343 employees in the first half of 2016 and 2015 , respectively. As a result of these termination programs, we recognized charges for employee termination costs as shown in the table below: Second Quarter First Half (In thousands) 2016 2015 2016 2015 Cost of revenues $ 720 $ 319 $ 3,425 $ 2,518 Selling, general and administrative expenses 136 413 867 1,135 Total employee termination costs $ 856 $ 732 $ 4,292 $ 3,653 Fluids systems $ 738 $ 707 $ 3,919 $ 3,337 Mats and integrated services 91 22 250 217 Corporate office 27 3 123 99 Total employee termination costs $ 856 $ 732 $ 4,292 $ 3,653 Accrued employee termination costs at June 30, 2016 and December 31, 2015 were $1.1 million and $3.3 million , respectively, and are expected to be paid over the next twelve months. During the second quarter of 2016, the Fluids Systems segment operating results include a total of $7.6 million of charges for the reduction in value of certain assets. These charges include non-cash impairments totaling $6.9 million for certain assets in the Asia Pacific region as discussed further below which are reported in impairments and other charges. The charges also include a $0.6 million write-down of U.S. diesel-based drilling fluid inventory which is reported in cost of revenues. During the second quarter of 2016, as a result of the continuing unfavorable industry market conditions and operating losses incurred, as well as the deteriorating outlook for the Asia Pacific region of our Fluids Systems segment, we reviewed the recoverability of long-lived assets for this region. We assessed recoverability of the long-lived assets for the Asia Pacific region by comparing the sum of expected undiscounted future net cash flows with the carrying amount of the asset group and determined that the carrying value may not be recoverable. We determined the amount of impairment based on the difference between the carrying amount of the Asia Pacific asset group and its estimated fair value, which we determined using a discounted cash flow approach. As a result of this review, we recorded non-cash impairments totaling $6.9 million including a $3.8 million charge to write-down property, plant and equipment to its estimated fair value and a $3.1 million charge to fully impair the customer related intangible assets for the Asia Pacific region. As described in Note 1, we revised our estimated useful lives and end of life residual values for composite mats included in our rental fleet as of January 1, 2016 resulting in a decrease in depreciation expense of approximately $1.5 million and $3.1 million for the three and six months ended June 30, 2016 . In the first half of 2016 , revenue from Sonatrach, our primary customer in Algeria, was approximately 15% of consolidated revenues. |
Basis of Presentation and Sig17
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Change in accounting estimates | In 2016, we revised our estimates of the useful lives and residual values of certain of our composite mats included in rental fleet fixed assets within the Mats and Integrated Services segment. We now estimate that certain composite mats which were originally estimated to have a useful life of 7 years with zero residual value will have estimated useful lives ranging from 10 to 12 years with an estimated residual value of 20% . These changes in estimates were recognized prospectively beginning January 1, 2016 resulting in a reduction in depreciation expense for the Mats and Integrated Services segment of approximately $1.5 million and $3.1 million for the three and six months ended June 30, 2016 , respectively. We expect these changes to have a similar effect on quarterly results going forward. |
New accounting pronouncements | Standard adopted in 2016 In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance that eliminates the requirement to restate prior periods to reflect adjustments made to provisional amounts recognized in a business combination. The new guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The new guidance was effective for us prospectively in the first quarter of 2016; however, the adoption did not have any effect on our consolidated financial statements. Standards not yet adopted In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of the new guidance by one year and provided entities the option to early adopt the new guidance. The new guidance is effective for us in the first quarter of 2018 with early adoption permitted in the first quarter of 2017. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the impact of these amendments on our consolidated financial statements, including the adoption and transition alternatives. In July 2015, the FASB issued updated guidance that simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance is effective prospectively for us in the first quarter of 2017 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In February 2016, the FASB issued updated guidance regarding accounting for leases. The new accounting standard provides principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognize both assets and liabilities arising from financing and operating leases. The classification as either a financing or operating lease will determine whether lease expense is recognized based on an effective interest method basis or on a straight-line basis over the term of the lease, respectively. The new guidance is effective for us in the first quarter of 2019 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In March 2016, the FASB issued updated guidance that simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification of excess tax benefits on the statement of cash flows. The new guidance is effective for us in the first quarter of 2017 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table presents the reconciliation of the numerator and denominator for calculating earnings (loss) per share: Second Quarter First Half (In thousands, except per share data) 2016 2015 2016 2015 Numerator Net loss - basic $ (13,904 ) $ (4,254 ) $ (27,204 ) $ (3,261 ) Assumed conversions of Senior Notes — — — — Adjusted net loss - diluted $ (13,904 ) $ (4,254 ) $ (27,204 ) $ (3,261 ) Denominator Weighted-average common shares outstanding - basic 83,457 82,529 83,358 82,414 Dilutive effect of stock options and restricted stock awards — — — — Dilutive effect of Senior Notes — — — — Weighted-average common shares outstanding - diluted 83,457 82,529 83,358 82,414 Net loss per common share Basic $ (0.17 ) $ (0.05 ) $ (0.33 ) $ (0.04 ) Diluted $ (0.17 ) $ (0.05 ) $ (0.33 ) $ (0.04 ) Stock options and restricted stock excluded from calculation of diluted earnings per share because anti-dilutive for the period 7,220 2,911 6,742 2,685 |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of accounts and other receivables | Receivables consisted of the following: (In thousands) June 30, 2016 December 31, 2015 Gross trade receivables $ 143,277 $ 159,119 Allowance for doubtful accounts (8,442 ) (7,189 ) Net trade receivables 134,835 151,930 Income tax receivables 20,129 32,600 Other receivables 22,520 21,834 Total receivables, net $ 177,484 $ 206,364 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (In thousands) June 30, 2016 December 31, 2015 Raw materials: Drilling fluids $ 116,651 $ 133,934 Mats 1,376 657 Total raw materials 118,027 134,591 Blended drilling fluids components 24,270 25,343 Finished goods - mats 2,579 3,723 Total inventory $ 144,876 $ 163,657 |
Financing Arrangements and Fa21
Financing Arrangements and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Financing arrangements consisted of the following: (In thousands) June 30, 2016 December 31, 2015 Senior Notes $ 161,321 $ 172,497 Debt issuance costs - Senior Notes (866 ) (1,296 ) Revolving Credit Facility — — ABL Facility — — Other 10,198 7,392 Total debt 170,653 178,593 Less: current portion of total debt (10,193 ) (7,382 ) Long-term debt $ 160,460 $ 171,211 |
Segment Data (Tables)
Segment Data (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of operating results for reportable segments | As a result of these termination programs, we recognized charges for employee termination costs as shown in the table below: Second Quarter First Half (In thousands) 2016 2015 2016 2015 Cost of revenues $ 720 $ 319 $ 3,425 $ 2,518 Selling, general and administrative expenses 136 413 867 1,135 Total employee termination costs $ 856 $ 732 $ 4,292 $ 3,653 Fluids systems $ 738 $ 707 $ 3,919 $ 3,337 Mats and integrated services 91 22 250 217 Corporate office 27 3 123 99 Total employee termination costs $ 856 $ 732 $ 4,292 $ 3,653 Summarized operating results for our reportable segments are shown in the following table (net of inter-segment transfers): Second Quarter First Half (In thousands) 2016 2015 2016 2015 Revenues Fluids systems $ 96,153 $ 140,344 $ 194,804 $ 312,246 Mats and integrated services 19,162 23,300 35,055 59,862 Total Revenues $ 115,315 $ 163,644 $ 229,859 $ 372,108 Operating Income (Loss) Fluids systems $ (11,924 ) $ (223 ) $ (27,131 ) $ (1,925 ) Mats and integrated services 3,989 6,555 7,725 22,202 Corporate office (7,200 ) (8,014 ) (14,554 ) (15,831 ) Operating Income (Loss) $ (15,135 ) $ (1,682 ) $ (33,960 ) $ 4,446 |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies (Details Textual) - Composite mats - Mats and integrated services - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Property, plant, and equipment, salvage value | $ 0 | ||
Property, plant and equipment, salvage value, percentage | 20.00% | 20.00% | |
Reduction in depreciation expense | $ 1,500,000 | $ 3,100,000 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 12 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net loss - basic | $ (13,904) | $ (4,254) | $ (27,204) | $ (3,261) |
Assumed conversions of Senior Notes | 0 | 0 | 0 | 0 |
Adjusted net loss - diluted | $ (13,904) | $ (4,254) | $ (27,204) | $ (3,261) |
Weighted average number of common shares outstanding - basic (in shares) | 83,457 | 82,529 | 83,358 | 82,414 |
Dilutive effect of stock options and restricted stock awards (in shares) | 0 | 0 | 0 | 0 |
Dilutive effect of Senior Notes (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average number of common shares outstanding (in shares) | 83,457 | 82,529 | 83,358 | 82,414 |
Basic income (loss) per common share (in dollars per share) | $ (0.17) | $ (0.05) | $ (0.33) | $ (0.04) |
Diluted income (loss) per common share (in dollars per share) | $ (0.17) | $ (0.05) | $ (0.33) | $ (0.04) |
Stock options and restricted stock excluded from calculation of diluted earnings per share because anti-dilutive for the period (in shares) | 7,220 | 2,911 | 6,742 | 2,685 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | May 16, 2016 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ 4.32 | ||
Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, requisite service period | 3 years | ||
Deferred compensation arrangement with individual, exercise price (in dollars per share) | $ 4.32 | ||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in dollars per share) | $ 1.97 | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate | 1.38% | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | 5 years 2 months 19 days | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate | 50.49% | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, shares issued | 230,790 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share) | $ 5.18 | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate | 0.95% | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate | 46.89% | ||
Share Price (in dollars per share) | $ 4.69 | ||
Minimum | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, payout rate of shares | 0.00% | ||
Maximum | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, payout rate of shares | 150.00% | ||
Executive officer and key employees | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, shares issued | 1,463,994 | ||
Deferred compensation arrangement with individual, requisite service period | 3 years | ||
Executive officer and key employees | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, shares issued | 1,242,856 | ||
Non-employee director | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation arrangement with individual, shares issued | 212,961 |
Repurchase Program (Details)
Repurchase Program (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Feb. 28, 2014 | Apr. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Purchase of senior notes | $ 9,206,000 | $ 0 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 33,500,000 | |||||
Share repurchase program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 50,000,000 | ||||
Treasury stock, shares, acquired | 0 | 0 | ||||
Senior notes | Share repurchase program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Debt instrument, repurchased face amount | $ 11,200,000 | $ 11,200,000 | ||||
Purchase of senior notes | $ 9,200,000 | $ 9,200,000 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Gross trade receivables | $ 143,277 | $ 159,119 |
Allowance for doubtful accounts | (8,442) | (7,189) |
Net trade receivables | 134,835 | 151,930 |
Income tax receivables | 20,129 | 32,600 |
Other receivables | 22,520 | 21,834 |
Total receivables, net | $ 177,484 | $ 206,364 |
Receivables (Details Textual)
Receivables (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $ 22,520 | $ 21,834 |
Receivables, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Income taxes receivable | 16,500 | 29,000 |
Nontrade receivables | 10,500 | 10,400 |
Escrow | Receivables, net | Environmental services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $ 8,000 | $ 8,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | ||
Raw materials | $ 118,027 | $ 134,591 |
Total inventory | 144,876 | 163,657 |
Drilling fluids | ||
Inventory [Line Items] | ||
Raw materials | 116,651 | 133,934 |
Mats | ||
Inventory [Line Items] | ||
Raw materials | 1,376 | 657 |
Finished goods | 2,579 | 3,723 |
Blended drilling fluids components | ||
Inventory [Line Items] | ||
Finished goods | 24,270 | $ 25,343 |
United States | Fluids systems | Cost of sales | ||
Inventory [Line Items] | ||
Inventory write-down | $ 600 |
Financing Arrangements and Fa30
Financing Arrangements and Fair Value of Financial Instruments Financing Arrangements and Fair Vaule of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Senior Notes | $ 161,321 | $ 172,497 |
Debt issuance costs - Senior Notes | (866) | (1,296) |
Revolving Credit Facility | 0 | 0 |
ABL Facility | 0 | 0 |
Other | 10,198 | 7,392 |
Total debt | 170,653 | 178,593 |
Less: current portion of total debt | (10,193) | (7,382) |
Long-term debt | $ 160,460 | $ 171,211 |
Financing Arrangements and Fa31
Financing Arrangements and Fair Value of Financial Instruments (Details Textual) - USD ($) | May 12, 2016 | Feb. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | May 31, 2016 | Dec. 31, 2015 | Sep. 30, 2010 |
Debt Instrument [Line Items] | ||||||||||
Senior Notes | $ 161,321,000 | $ 161,321,000 | $ 172,497,000 | |||||||
Purchase of senior notes | 9,206,000 | $ 0 | ||||||||
Gain (loss) on extinguishment of debt | 0 | $ 0 | 1,894,000 | 0 | ||||||
Revolving credit facility | 0 | 0 | 0 | |||||||
ABL Facility | 0 | 0 | 0 | |||||||
Short-term debt | 10,193,000 | 10,193,000 | 7,382,000 | |||||||
Letters of credit outstanding, amount | 14,900,000 | 14,900,000 | ||||||||
Restricted cash and cash equivalents, current | 16,500,000 | 16,500,000 | ||||||||
Other current assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Restricted cash and cash equivalents, current | 17,400,000 | 17,400,000 | ||||||||
Foreign operations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Short-term debt | 10,200,000 | 10,200,000 | 7,400,000 | |||||||
Letters of credit outstanding, amount | 10,200,000 | 10,200,000 | ||||||||
Restricted cash and cash equivalents, current | 900,000 | 900,000 | ||||||||
Credit agreement | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | 150,000,000 | |||||||
Revolving credit facility | $ 0 | |||||||||
Interest costs incurred | 1,100,000 | |||||||||
ABL facility | Federal funds rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, base rate, basis spread on variable rate | 0.50% | |||||||||
ABL facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, base rate, basis spread on variable rate | 1.00% | |||||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||||||
ABL facility | Base rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||
ABL facility | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 90,000,000 | |||||||||
Line of credit facility, remaining borrowing capacity | 50,600,000 | $ 50,600,000 | ||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.625% | |||||||||
Line of credit facility, covenant terms, acceleration of other indebtedness | $ 25,000,000 | |||||||||
Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 172,500,000 | |||||||||
Senior Notes | $ 161,300,000 | $ 161,300,000 | ||||||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | ||||||||
Debt conversion converted instrument shares issued for basis principal | 90.8893 | |||||||||
Debt conversion principal amount of senior notes as basis for conversion rate | $ 1,000 | |||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ 11 | $ 11 | ||||||||
Debt instrument, fair value disclosure | $ 153,800,000 | $ 153,800,000 | $ 154,400,000 | |||||||
Senior notes | Share repurchase program | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, repurchased face amount | $ 11,200,000 | $ 11,200,000 | ||||||||
Purchase of senior notes | $ 9,200,000 | 9,200,000 | ||||||||
Gain (loss) on extinguishment of debt | $ 1,900,000 | |||||||||
Minimum | ABL facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||
Minimum | ABL facility | Base rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||||
Minimum | ABL facility | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||||||||
Maximum | ABL facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||||||
Maximum | ABL facility | Base rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||
Maximum | ABL facility | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.625% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2015employee | Mar. 31, 2015case | Dec. 31, 2015USD ($)case | Dec. 31, 2014employee | Jun. 30, 2014employee | Jun. 30, 2016USD ($) | Mar. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||||||
Litigation settlement, amount | $ 5 | ||||||
Davida | |||||||
Loss Contingencies [Line Items] | |||||||
Number of employees provided class action notification | employee | 658 | ||||||
Loss contingency, number of plaintiffs | employee | 91 | ||||||
Christensen | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of plaintiffs | employee | 5 | ||||||
Loss contingency, new claims filed, number | case | 2 | ||||||
Loss contingency, pending claims, number | case | 8 | ||||||
Individual FLSA Cases | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, new claims filed, number | case | 2 | ||||||
Ecoserv | Environmental services | |||||||
Loss Contingencies [Line Items] | |||||||
Escrow deposit | $ 8 | ||||||
Ecoserv | Environmental services | Released 18 months from closing date | |||||||
Loss Contingencies [Line Items] | |||||||
Escrow deposit | $ 4 | ||||||
Ecoserv | Environmental services | Released 9 months from closing date | |||||||
Loss Contingencies [Line Items] | |||||||
Escrow deposit | $ 4 |
Segment Data (Details)
Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 115,315 | $ 163,644 | $ 229,859 | $ 372,108 |
Operating Income (Loss) | (15,135) | (1,682) | (33,960) | 4,446 |
Employee termination costs | 856 | 732 | 4,292 | 3,653 |
Fluids systems | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 96,153 | 140,344 | 194,804 | 312,246 |
Operating Income (Loss) | (11,924) | (223) | (27,131) | (1,925) |
Employee termination costs | 738 | 707 | 3,919 | 3,337 |
Mats and integrated services | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 19,162 | 23,300 | 35,055 | 59,862 |
Operating Income (Loss) | 3,989 | 6,555 | 7,725 | 22,202 |
Employee termination costs | 91 | 22 | 250 | 217 |
Corporate office | ||||
Revenue, Major Customer [Line Items] | ||||
Operating Income (Loss) | (7,200) | (8,014) | (14,554) | (15,831) |
Employee termination costs | 27 | 3 | 123 | 99 |
Cost of revenues | ||||
Revenue, Major Customer [Line Items] | ||||
Employee termination costs | 720 | 319 | 3,425 | 2,518 |
Selling, general and administrative expenses | ||||
Revenue, Major Customer [Line Items] | ||||
Employee termination costs | $ 136 | $ 413 | $ 867 | $ 1,135 |
Segment Data (Details Textual)
Segment Data (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($)employee | Jun. 30, 2015USD ($)employee | Jun. 30, 2016USD ($)employee | Dec. 31, 2015USD ($) | |
Revenue, Major Customer [Line Items] | |||||
Supplemental unemployment benefits, severance benefits | $ 1,100 | $ 1,100 | $ 1,100 | $ 3,300 | |
Asset impairment charges | $ 8,617 | $ 0 | |||
Customer concentration risk | Sales revenue, net | Sonatrach | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration risk, percentage | 15.00% | ||||
Fluids systems | |||||
Revenue, Major Customer [Line Items] | |||||
Asset impairment charges | 7,600 | ||||
Composite mats | Mats and integrated services | |||||
Revenue, Major Customer [Line Items] | |||||
Reduction in depreciation expense | 1,500 | $ 3,100 | |||
North America | |||||
Revenue, Major Customer [Line Items] | |||||
Restructuring and related cost, number of positions eliminated | employee | 177 | 343 | 613 | ||
Percentage of workforce reduction | 47.00% | ||||
Asia Pacific | Fluids systems | |||||
Revenue, Major Customer [Line Items] | |||||
Asset impairment charges | 6,900 | ||||
Tangible asset impairment charges | 3,800 | ||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 3,100 | ||||
United States | Cost of revenues | Fluids systems | |||||
Revenue, Major Customer [Line Items] | |||||
Inventory write-down | $ 600 |