Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-02960 | |
Entity Registrant Name | Newpark Resources, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1123385 | |
Entity Address, Address Line One | 9320 Lakeside Boulevard, | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | The Woodlands, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77381 | |
City Area Code | 281 | |
Local Phone Number | 362-6800 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | NR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 89,899,053 | |
Entity Central Index Key | 0000071829 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 49,064 | $ 48,672 |
Receivables, net | 197,440 | 216,714 |
Inventories | 187,979 | 196,897 |
Prepaid expenses and other current assets | 16,241 | 16,526 |
Total current assets | 450,724 | 478,809 |
Property, plant and equipment, net | 305,732 | 310,409 |
Operating lease assets | 32,049 | 32,009 |
Goodwill | 42,108 | 42,332 |
Other intangible assets, net | 28,032 | 29,677 |
Deferred tax assets | 5,077 | 3,600 |
Other assets | 3,110 | 3,243 |
Total assets | 866,832 | 900,079 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current debt | 6,981 | 6,335 |
Accounts payable | 69,940 | 79,777 |
Accrued liabilities | 36,335 | 42,750 |
Total current liabilities | 113,256 | 128,862 |
Long-term debt, less current portion | 155,965 | 153,538 |
Noncurrent operating lease liabilities | 26,546 | 26,946 |
Deferred tax liabilities | 32,614 | 34,247 |
Other noncurrent liabilities | 8,092 | 7,841 |
Total liabilities | 336,473 | 351,434 |
Commitments and contingencies (Note 8) | ||
Common stock, $0.01 par value (200,000,000 shares authorized and 106,696,719 and 106,696,719 shares issued, respectively) | 1,067 | 1,067 |
Paid-in capital | 622,115 | 620,626 |
Accumulated other comprehensive loss | (75,440) | (67,947) |
Retained earnings | 120,501 | 134,119 |
Treasury stock, at cost (16,797,666 and 16,958,418 shares, respectively) | (137,884) | (139,220) |
Total stockholders’ equity | 530,359 | 548,645 |
Total liabilities and stockholders’ equity | $ 866,832 | $ 900,079 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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) | 106,696,719 | 106,696,719 |
Treasury stock, shares (in shares) | 16,797,666 | 16,958,418 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 164,550 | $ 211,473 |
Cost of revenues | 146,084 | 174,976 |
Selling, general and administrative expenses | 24,696 | 30,742 |
Other operating (income) loss, net | (344) | 76 |
Operating income (loss) | (5,886) | 5,679 |
Foreign currency exchange (gain) loss | 1,982 | (1,062) |
Interest expense, net | 3,201 | 3,656 |
Loss on extinguishment of debt | 915 | 0 |
Income (loss) before income taxes | (11,984) | 3,085 |
Provision for income taxes | 164 | 1,803 |
Net income (loss) | $ (12,148) | $ 1,282 |
Net income (loss) per common share - basic (in dollars per share) | $ (0.14) | $ 0.01 |
Net income (loss) per common share - diluted (in dollars per share) | $ (0.14) | $ 0.01 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (12,148) | $ 1,282 |
Foreign currency translation adjustments (net of tax benefit of $272 and $70) | (7,493) | (1,921) |
Comprehensive loss | $ (19,641) | $ (639) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax benefit | $ 272 | $ 70 |
Condensed Consolidated Statem_4
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, 2018 | $ 569,681 | $ 1,064 | $ 617,276 | $ (67,673) | $ 148,802 | $ (129,788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,282 | 1,282 | ||||
Employee stock options, restricted stock and employee stock purchase plan | 790 | 309 | 481 | |||
Stock-based compensation expense | 4,969 | 4,969 | ||||
Treasury shares purchased at cost | (5,013) | (5,013) | ||||
Foreign currency translation, net of tax | (1,921) | (1,921) | ||||
Ending balance at Mar. 31, 2019 | 569,788 | 1,064 | 622,554 | (69,594) | 150,084 | (134,320) |
Beginning balance at Dec. 31, 2019 | 548,645 | 1,067 | 620,626 | (67,947) | 134,119 | (139,220) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (12,148) | (12,148) | ||||
Employee stock options, restricted stock and employee stock purchase plan | 498 | (103) | (735) | 1,336 | ||
Stock-based compensation expense | 1,592 | 1,592 | ||||
Foreign currency translation, net of tax | (7,493) | (7,493) | ||||
Ending balance at Mar. 31, 2020 | $ 530,359 | $ 1,067 | $ 622,115 | $ (75,440) | $ 120,501 | $ (137,884) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (12,148) | $ 1,282 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 11,453 | 11,438 |
Stock-based compensation expense | 1,592 | 4,969 |
Provision for deferred income taxes | (2,801) | (438) |
Credit loss expense | 20 | 386 |
Gain on sale of assets | (1,033) | (2,339) |
Loss on extinguishment of debt | 915 | 0 |
Amortization of original issue discount and debt issuance costs | 1,573 | 1,481 |
Change in assets and liabilities: | ||
Decrease in receivables | 10,652 | 5,300 |
Decrease in inventories | 5,466 | 10,139 |
Increase in other assets | (644) | (273) |
Decrease in accounts payable | (9,842) | (15,149) |
Decrease in accrued liabilities and other | (815) | (14,527) |
Net cash provided by operating activities | 4,388 | 2,269 |
Cash flows from investing activities: | ||
Capital expenditures | (6,649) | (17,467) |
Proceeds from sale of property, plant and equipment | 3,673 | 1,771 |
Net cash used in investing activities | (2,976) | (15,696) |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 74,909 | 80,656 |
Payments on lines of credit | (58,948) | (61,524) |
Repayments of Convertible Debt | (13,775) | 0 |
Debt issuance costs | 0 | (927) |
Proceeds from employee stock plans | 0 | 330 |
Purchases of treasury stock | (32) | (5,013) |
Other financing activities | (1,218) | (1,169) |
Net cash provided by financing activities | 936 | 12,353 |
Effect of exchange rate changes on cash | (2,576) | (581) |
Net decrease in cash, cash equivalents, and restricted cash | (228) | (1,655) |
Cash, cash equivalents, and restricted cash at beginning of period | 56,863 | 64,266 |
Cash, cash equivalents, and restricted cash at end of period | $ 56,635 | $ 62,611 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 collectively 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, 2019. Our fiscal year end is December 31 and our first quarter represents the three-month period ended March 31. The results of operations for the first quarter of 2020 are not necessarily indicative of the results to be expected for the entire year. Unless otherwise noted, 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 March 31, 2020 and our results of operations and cash flows for the first quarter of 2020 and 2019. All adjustments are of a normal recurring nature. Our balance sheet at December 31, 2019 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, 2019. New Accounting Pronouncements Standards Adopted in 2020 Credit Losses. In 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires financial assets measured at amortized cost basis, including trade receivables, to be presented at the net amount expected to be collected. The new guidance requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, which will generally result in the earlier recognition of allowances for losses. Under previous guidance, reserves for uncollectible accounts receivable were determined on a specific identification basis when we believed that the required payment of specific amounts owed to us was not probable. Under the new guidance, our allowance for credit losses reflects losses that are expected over the contractual life of the asset, and takes into account historical loss experience, current and future economic conditions, and reasonable and supportable forecasts. We adopted this new guidance as of January 1, 2020 using the modified retrospective transition method, and recorded a net reduction of $0.7 million to opening retained earnings to reflect the cumulative effect of adoption. Results for reporting periods beginning after December 31, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported in accordance with previous guidance. See Note 4 for additional required disclosures. The cumulative effect of the changes made to our consolidated balance sheet for the adoption of the new accounting guidance for credit losses were as follows: (In thousands) Balance at December 31, 2019 Impact of Adoption of New Credit Losses Guidance Balance at January 1, 2020 Receivables, net $ 216,714 $ (959) $ 215,755 Deferred tax assets 3,600 59 3,659 Deferred tax liabilities 34,247 (165) 34,082 Retained earnings 134,119 (735) 133,384 Standards Not Yet Adopted Income Taxes: Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued new guidance which is intended to simplify various aspects related to accounting for income taxes. This guidance is effective for us in the first quarter of 2021 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the reconciliation of the numerator and denominator for calculating net income (loss) per share: First Quarter (In thousands, except per share data) 2020 2019 Numerator Net income (loss) - basic and diluted $ (12,148) $ 1,282 Denominator Weighted average common shares outstanding - basic 89,645 90,111 Dilutive effect of stock options and restricted stock awards — 2,267 Dilutive effect of Convertible Notes — — Weighted average common shares outstanding - diluted 89,645 92,378 Net income (loss) per common share Basic $ (0.14) $ 0.01 Diluted $ (0.14) $ 0.01 We excluded the following weighted-average potential shares from the calculations of diluted net income (loss) per share during the applicable periods because their inclusion would have been anti-dilutive: First Quarter (In thousands) 2020 2019 Stock options and restricted stock awards 4,835 1,712 For the first quarter of 2020, we excluded all potentially dilutive stock options and restricted stock awards in calculating diluted earnings per share as the effect was anti-dilutive due to the net loss incurred for this period. The Convertible Notes (as defined in Note 6) only impact the calculation of diluted net income per share in periods that the average price of our common stock, as calculated in accordance with the terms of the indenture governing the Convertible Notes, exceeds the conversion price of $9.33 per share. We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of the Convertible Notes as further described in Note 6. If converted, we currently intend to settle the principal amount of the notes in cash and as a result, only the amounts payable in excess of the principal amount of the notes, if any, would be assumed to be settled with shares of common stock for purposes of computing diluted net income per share. |
Repurchase Program
Repurchase Program | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Repurchase Program | Repurchase Program Our securities repurchase program remains available for repurchases of any combination of our common stock and our Convertible Notes. The repurchase program has no specific term. Repurchases are expected to be funded from operating cash flows, available cash on hand, and borrowings under our ABL Facility (as defined in Note 6). As part of the share repurchase program, our management has been authorized to establish trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934. As of March 31, 2020, we had $67.2 million remaining under the program. During the first quarter of 2020, we repurchased $14.5 million of our Convertible Notes in the open market under the repurchase program for a total cost of $13.8 million. There were no Convertible Notes repurchased under the program during 2019. There were no shares of common stock repurchased under the repurchase program during the first quarter of 2020. During the first quarter of 2019, we repurchased an aggregate of 655,666 shares of our common stock under the program for a total cost of $5.0 million. |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Trade receivables: Gross trade receivables $ 188,576 $ 207,554 Allowance for credit losses (6,141) (6,007) Net trade receivables 182,435 201,547 Income tax receivables 6,263 7,393 Other receivables 8,742 7,774 Total receivables, net $ 197,440 $ 216,714 Other receivables included $7.0 million and $6.2 million for value added, goods and service taxes related to foreign jurisdictions as of March 31, 2020 and December 31, 2019, respectively. We adopted the new accounting guidance for credit losses as of January 1, 2020 (see Note 1 for additional information). To measure expected credit losses, we evaluate our receivables on a collective basis for assets that share similar risk characteristics. Our allowance for credit losses reflects losses that are expected over the contractual life of the asset, and takes into account historical loss experience, current and future economic conditions, and reasonable and supportable forecasts. Changes in our allowance for credit losses were as follows: First Quarter (In thousands) 2020 2019 Balance at beginning of period $ 6,007 $ 10,034 Cumulative effect of accounting change 959 — Credit loss expense 20 386 Write-offs, net of recoveries (845) (861) Balance at end of period $ 6,141 $ 9,559 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Raw materials: Fluids systems $ 124,623 $ 141,314 Mats and integrated services 4,451 5,049 Total raw materials 129,074 146,363 Blended fluids systems components 40,892 39,542 Finished goods - mats 18,013 10,992 Total inventories $ 187,979 $ 196,897 Raw materials for the Fluids Systems segment consists primarily of barite, chemicals, and other additives that are consumed in the production of our fluids systems. Raw materials for the Mats and Integrated Services segment consists primarily of resins, chemicals, and other materials used to manufacture composite mats, as well as materials that are consumed in providing spill containment and other services to our customers. Our blended fluids systems components consist of base fluid systems that have been either mixed internally at our blending facilities or purchased from third-party vendors. These base fluid systems require raw materials to be added, as needed to meet specified customer requirements. |
Financing Arrangements and Fair
Financing Arrangements and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements and Fair Value of Financial Instruments | Financing Arrangements and Fair Value of Financial Instruments Financing arrangements consisted of the following: March 31, 2020 December 31, 2019 (In thousands) Principal Amount Unamortized Discount and Debt Issuance Costs Total Debt Principal Amount Unamortized Discount and Debt Issuance Costs Total Debt Convertible Notes $ 85,500 $ (9,261) $ 76,239 $ 100,000 $ (12,291) $ 87,709 ABL Facility 79,000 — 79,000 65,000 — 65,000 Other debt 7,707 — 7,707 7,164 — 7,164 Total debt 172,207 (9,261) 162,946 172,164 (12,291) 159,873 Less: Current portion (6,981) — (6,981) (6,335) — (6,335) Long-term debt $ 165,226 $ (9,261) $ 155,965 $ 165,829 $ (12,291) $ 153,538 Convertible Notes. In December 2016, we issued $100.0 million of unsecured convertible senior notes (“Convertible Notes”) that mature on December 1, 2021, of which $85.5 million principal amount was outstanding at March 31, 2020. The notes bear interest at a rate of 4.0% per year, payable semiannually in arrears on June 1 and December 1 of each year. Holders may convert the notes at their option at any time prior to the close of business on the business day immediately preceding June 1, 2021, only under the following circumstances: • during any calendar quarter (and only during such calendar quarter) if the last reported sale price of our common stock for at least 20 trading days (regardless of whether consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the notes in effect on each applicable trading day; • during the five five • upon the occurrence of specified corporate events, as described in the indenture governing the notes, such as a consolidation, merger, or share exchange. On or after June 1, 2021 until the close of business on the business day immediately preceding the maturity date, holders may convert their notes at any time, regardless of whether any of the foregoing conditions have been satisfied. As of May 4, 2020, the notes were not convertible. The notes are convertible into, at our election, cash, shares of common stock, or a combination of both, subject to satisfaction of specified conditions and during specified periods, as described above. If converted, we currently intend to pay cash for the principal amount of the notes converted. The conversion rate is 107.1381 shares of our common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of $9.33 per share of common stock), subject to adjustment in certain circumstances. We may not redeem the notes prior to their maturity date. In accordance with accounting guidance for convertible debt with a cash conversion option, we separately accounted for the debt and equity components of the notes in a manner that reflected our estimated nonconvertible debt borrowing rate. As of March 31, 2020, the carrying amount of the debt component was $76.2 million, which is net of the unamortized debt discount and debt issuance costs of $9.3 million. Including the impact of the unamortized debt discount and debt issuance costs, the effective interest rate on the notes is approximately 11.3%. During the first quarter of 2020, we repurchased $14.5 million of our Convertible Notes in the open market for a total cost of $13.8 million, and recognized a net loss of $0.9 million reflecting the difference in the amount paid and the net carrying value of the extinguished debt, including original issue discount and debt issuance costs. Asset-Based Loan Facility. In May 2016, we entered into an asset-based revolving credit agreement which replaced our previous credit agreement. In October 2017, we entered into an Amended and Restated Credit Agreement and in March 2019, we entered into a First Amendment to Amended and Restated Credit Agreement (as amended, the “ABL Facility”). The ABL Facility provides financing of up to $200.0 million available for borrowings (inclusive of letters of credit) and can be increased up to a maximum capacity of $275.0 million, subject to certain conditions. As of March 31, 2020, our total availability under the ABL Facility was $151.0 million, of which $79.0 million was drawn, resulting in remaining availability of $72.0 million. The ABL Facility terminates in March 2024; however, the ABL Facility has a springing maturity date that will accelerate the maturity of the ABL Facility to September 1, 2021 if, prior to such date, the Convertible Notes have not been repurchased, redeemed, refinanced, exchanged or otherwise satisfied in full or we have not escrowed an amount of funds, that together with the amount that we establish as a reserve against our borrowing capacity, is sufficient for the future settlement of the Convertible Notes at their maturity. The ABL Facility requires compliance with a minimum fixed charge coverage ratio and minimum unused availability of $25.0 million to utilize borrowings or assignment of availability under the ABL Facility towards funding the repayment of the Convertible Notes. Borrowing availability under the ABL Facility is calculated based on eligible accounts receivable, inventory, and, subject to satisfaction of certain financial covenants as described below, composite mats included in the rental fleet, net of reserves and limits on such assets included in the borrowing base calculation. To the extent pledged by us, the borrowing base calculation also includes the amount of eligible pledged cash. The lender may establish such reserves, in part based on appraisals of the asset base, and other limits at its discretion which could reduce the amounts otherwise available under the ABL Facility. 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. Under the terms of the ABL Facility, we may elect to borrow at a variable interest rate 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. and (c) LIBOR, subject to a floor of zero, plus 100 basis points, plus, in each case, an applicable margin per annum. The applicable margin ranges from 150 to 200 basis points for LIBOR borrowings, and 50 to 100 basis points for base rate borrowings, based on the consolidated fixed charge coverage ratio as defined in the ABL Facility. As of March 31, 2020, the applicable margin for borrowings under our ABL Facility was 150 basis points with respect to LIBOR borrowings and 50 basis points with respect to base rate borrowings. The weighted average interest rate for the ABL Facility was 2.4% at March 31, 2020. In addition, we are required to pay a commitment fee on the unused portion of the ABL Facility ranging from 25 to 37.5 basis points, based on the level of outstanding borrowings, as defined in the ABL Facility. As of March 31, 2020, the applicable commitment fee was 37.5 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. The ABL Facility also requires compliance with a fixed charge coverage ratio if availability under the ABL Facility falls below $22.5 million. 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. Certain of our foreign subsidiaries maintain local credit arrangements consisting primarily of lines of credit or overdraft facilities which are generally renewed on an annual basis. We utilize local financing arrangements in our foreign operations in order to provide short-term local liquidity needs. We had $6.7 million and $4.8 million outstanding under these arrangements at March 31, 2020 and December 31, 2019, respectively. In addition, at March 31, 2020, we had $49.8 million in outstanding letters of credit, performance bonds, and other guarantees for which certain of the letters of credit are collateralized by $7.6 million in restricted cash. 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 Convertible Notes, approximated their fair values at March 31, 2020 and December 31, 2019. The estimated fair value of our Convertible Notes was $63.8 million at March 31, 2020 and $101.4 million at December 31, 2019, based on quoted market prices at these respective dates. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes was $0.2 million for the first quarter of 2020 despite reporting a pretax loss. This result primarily reflects the impact of the geographic composition of our pretax loss, where the tax benefit from losses in the U.S was more than offset by the tax expense related to earnings from our international operations. The provision for income taxes was $1.8 million for the first quarter of 2019, reflecting an effective tax rate of 58%. The 2019 effective tax rate was negatively impacted by $0.7 million of discrete tax adjustments relative to the amount of pre-tax income. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. The CARES Act contains several tax provisions, including but not limited to additional carryback opportunities for net operating losses, temporary increases in the interest deductibility threshold, and the acceleration of refunds for any remaining alternative minimum tax (“AMT”) carryforwards. While there was no material impact from the CARES Act in our provision for income taxes for the first quarter of 2020, we are continuing to evaluate the provisions of the CARES Act and currently anticipate filing an amendment to our 2018 U.S. federal income tax return in the second quarter of 2020 to accelerate the refund of $0.7 million of AMT carryforwards. The CARES Act also permits most companies to defer paying their portion of certain applicable payroll taxes from the date the CARES Act was signed into law through December 31, 2020. The deferred amount will be due in two equal installments on December 31, 2021 and December 31, 2022. While we anticipate deferrals of applicable payroll taxes through December 31, 2020, there were no deferrals at March 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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. While the outcome of litigation or other proceedings against us cannot be predicted with certainty, management does not expect that any loss resulting from such litigation or other proceedings, in excess of any amounts accrued or covered by insurance, will have a material adverse impact on our consolidated financial statements. Kenedy, Texas Drilling Fluids Facility Fire In July 2018, a fire occurred at our Kenedy, Texas drilling fluids facility, destroying the distribution warehouse, including inventory and surrounding equipment. In addition, nearby residences and businesses were evacuated as part of the response to the fire. In order to avoid any customer service disruptions, we implemented contingency plans to supply products from alternate facilities in the area and region. Subsequently, we received petitions seeking payment for alleged bodily injuries, property damage, and punitive damages claimed to have been incurred as a result of the fire and the subsequent efforts we undertook to remediate any potential smoke damage. As of March 31, 2020, there are open claims remaining with four plaintiffs. We have been advised by our insurer that these claims are insured under our insurance programs. As of March 31, 2020, the claims related to the fire under our property, business interruption, and general liability insurance programs have not been finalized. |
Supplemental Disclosures to the
Supplemental Disclosures to the Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures to the Statements of Cash Flows | Supplemental Disclosures to the Statements of Cash Flows Supplemental disclosures to the statements of cash flows are presented below: First Quarter (In thousands) 2020 2019 Cash paid for: Income taxes (net of refunds) $ 1,888 $ 3,868 Interest $ 991 $ 1,514 Cash, cash equivalents, and restricted cash in the consolidated statements of cash flows consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Cash and cash equivalents $ 49,064 $ 48,672 Restricted cash (included in prepaid expenses and other current assets) 7,571 8,191 Cash, cash equivalents, and restricted cash $ 56,635 $ 56,863 |
Segment Data
Segment Data | 3 Months Ended |
Mar. 31, 2020 | |
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): First Quarter (In thousands) 2020 2019 Revenues Fluids systems $ 132,805 $ 160,653 Mats and integrated services 31,745 50,820 Total revenues $ 164,550 $ 211,473 Operating income (loss) Fluids systems $ (2,268) $ 3,874 Mats and integrated services 3,062 13,538 Corporate office (6,680) (11,733) Total operating income (loss) $ (5,886) $ 5,679 The following table presents further disaggregated revenues for the Fluids Systems segment: First Quarter (In thousands) 2020 2019 United States $ 73,660 $ 103,059 Canada 13,260 13,266 Total North America 86,920 116,325 EMEA 42,137 37,765 Other 3,748 6,563 Total International 45,885 44,328 Total Fluids Systems revenues $ 132,805 $ 160,653 The following table presents further disaggregated revenues for the Mats and Integrated Services segment: First Quarter (In thousands) 2020 2019 Service revenues $ 14,101 $ 21,150 Rental revenues 13,502 21,580 Product sales revenues 4,142 8,090 Total Mats and Integrated Services revenues $ 31,745 $ 50,820 We recognized $1.4 million of charges for inventory write-downs and severance costs in the first quarter of 2020, with $1.2 million in the Fluids Systems segment and $0.2 million in the Corporate office. During March 2020, oil prices collapsed due to geopolitical events along with the worldwide effects of the COVID-19 pandemic. As of May 1, 2020, the U.S. active rig count was 408, reflecting a 48% decline from the first quarter 2020 average level, and is expected to continue to significantly decline in the coming months. In response to the deteriorating U.S. land oil and natural gas market, we initiated certain headcount reductions and other cost reduction programs late in the first quarter of 2020, and these actions have continued into the second quarter of 2020. As a result, we expect to recognize additional severance charges and certain facility exit costs in the second quarter of 2020; however, such amounts are not currently estimable. We also made the decision in late 2019 to wind down our Brazil operations. At March 31, 2020, we had $11.6 million of accumulated translation losses related to our subsidiary in Brazil. As such, we will reclassify these losses and recognize a charge to income at such time when we have substantially liquidated our subsidiary in Brazil. As of March 31, 2020, our consolidated balance sheet includes $42.1 million of goodwill, all of which relates to the Mats and Integrated Services segment. Goodwill and other indefinite-lived intangible assets are tested for impairment annually as of November 1, or more frequently, if indicators of impairment exists. In March 2020, primarily as a result of the collapse in oil prices and the expected declines in the U.S. land E&P markets, along with a significant decline in the quoted market prices of our common stock, we considered these developments to be a potential indicator of impairment that required us to complete an interim goodwill impairment evaluation. As such, in March 2020, we estimated the fair value of our Mats and Integrated Services reporting unit based on our current forecasts and expectations for market conditions and determined that even though the estimated fair value had decreased, the fair value remained substantially in excess of its net carrying value, and therefore, no impairment was required. As of March 31, 2020, our consolidated balance sheet also includes $305.7 million of property, plant and equipment, net, and $27.5 million of finite-lived intangible assets, net, which combined includes $170.8 million in the Fluids Systems segment and $150.8 million in the Mats and Integrated Services segment. We review property, plant and equipment, finite-lived intangible assets and certain other assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We assess recoverability based on expected undiscounted future net cash flows. With the market uncertainty as discussed above, we completed an impairment review of such assets in March 2020, which indicated that the estimated undiscounted cash flows exceeded the carrying value, and therefore, no impairment was required. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | 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, 2019. |
New Accounting Pronouncements and Standards Not Yet Adopted | New Accounting Pronouncements Standards Adopted in 2020 Credit Losses. In 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires financial assets measured at amortized cost basis, including trade receivables, to be presented at the net amount expected to be collected. The new guidance requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, which will generally result in the earlier recognition of allowances for losses. Under previous guidance, reserves for uncollectible accounts receivable were determined on a specific identification basis when we believed that the required payment of specific amounts owed to us was not probable. Under the new guidance, our allowance for credit losses reflects losses that are expected over the contractual life of the asset, and takes into account historical loss experience, current and future economic conditions, and reasonable and supportable forecasts. We adopted this new guidance as of January 1, 2020 using the modified retrospective transition method, and recorded a net reduction of $0.7 million to opening retained earnings to reflect the cumulative effect of adoption. Results for reporting periods beginning after December 31, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported in accordance with previous guidance. See Note 4 for additional required disclosures. The cumulative effect of the changes made to our consolidated balance sheet for the adoption of the new accounting guidance for credit losses were as follows: (In thousands) Balance at December 31, 2019 Impact of Adoption of New Credit Losses Guidance Balance at January 1, 2020 Receivables, net $ 216,714 $ (959) $ 215,755 Deferred tax assets 3,600 59 3,659 Deferred tax liabilities 34,247 (165) 34,082 Retained earnings 134,119 (735) 133,384 Standards Not Yet Adopted Income Taxes: Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued new guidance which is intended to simplify various aspects related to accounting for income taxes. This guidance is effective for us in the first quarter of 2021 with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cumulative effect of the changes made to consolidated balance sheet for the adoption of new guidance | The cumulative effect of the changes made to our consolidated balance sheet for the adoption of the new accounting guidance for credit losses were as follows: (In thousands) Balance at December 31, 2019 Impact of Adoption of New Credit Losses Guidance Balance at January 1, 2020 Receivables, net $ 216,714 $ (959) $ 215,755 Deferred tax assets 3,600 59 3,659 Deferred tax liabilities 34,247 (165) 34,082 Retained earnings 134,119 (735) 133,384 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of net income per share | The following table presents the reconciliation of the numerator and denominator for calculating net income (loss) per share: First Quarter (In thousands, except per share data) 2020 2019 Numerator Net income (loss) - basic and diluted $ (12,148) $ 1,282 Denominator Weighted average common shares outstanding - basic 89,645 90,111 Dilutive effect of stock options and restricted stock awards — 2,267 Dilutive effect of Convertible Notes — — Weighted average common shares outstanding - diluted 89,645 92,378 Net income (loss) per common share Basic $ (0.14) $ 0.01 Diluted $ (0.14) $ 0.01 |
Schedule of weighted-average potential shares excluded from diluted net income per share | We excluded the following weighted-average potential shares from the calculations of diluted net income (loss) per share during the applicable periods because their inclusion would have been anti-dilutive: First Quarter (In thousands) 2020 2019 Stock options and restricted stock awards 4,835 1,712 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of receivables | Receivables consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Trade receivables: Gross trade receivables $ 188,576 $ 207,554 Allowance for credit losses (6,141) (6,007) Net trade receivables 182,435 201,547 Income tax receivables 6,263 7,393 Other receivables 8,742 7,774 Total receivables, net $ 197,440 $ 216,714 |
Changes in allowance for credit losses | Changes in our allowance for credit losses were as follows: First Quarter (In thousands) 2020 2019 Balance at beginning of period $ 6,007 $ 10,034 Cumulative effect of accounting change 959 — Credit loss expense 20 386 Write-offs, net of recoveries (845) (861) Balance at end of period $ 6,141 $ 9,559 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Raw materials: Fluids systems $ 124,623 $ 141,314 Mats and integrated services 4,451 5,049 Total raw materials 129,074 146,363 Blended fluids systems components 40,892 39,542 Finished goods - mats 18,013 10,992 Total inventories $ 187,979 $ 196,897 |
Financing Arrangements and Fa_2
Financing Arrangements and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of financing arrangements | Financing arrangements consisted of the following: March 31, 2020 December 31, 2019 (In thousands) Principal Amount Unamortized Discount and Debt Issuance Costs Total Debt Principal Amount Unamortized Discount and Debt Issuance Costs Total Debt Convertible Notes $ 85,500 $ (9,261) $ 76,239 $ 100,000 $ (12,291) $ 87,709 ABL Facility 79,000 — 79,000 65,000 — 65,000 Other debt 7,707 — 7,707 7,164 — 7,164 Total debt 172,207 (9,261) 162,946 172,164 (12,291) 159,873 Less: Current portion (6,981) — (6,981) (6,335) — (6,335) Long-term debt $ 165,226 $ (9,261) $ 155,965 $ 165,829 $ (12,291) $ 153,538 |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash flows | Supplemental disclosures to the statements of cash flows are presented below: First Quarter (In thousands) 2020 2019 Cash paid for: Income taxes (net of refunds) $ 1,888 $ 3,868 Interest $ 991 $ 1,514 |
Cash, cash equivalents and restricted cash | Cash, cash equivalents, and restricted cash in the consolidated statements of cash flows consisted of the following: (In thousands) March 31, 2020 December 31, 2019 Cash and cash equivalents $ 49,064 $ 48,672 Restricted cash (included in prepaid expenses and other current assets) 7,571 8,191 Cash, cash equivalents, and restricted cash $ 56,635 $ 56,863 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of operating results for reportable segments | Summarized operating results for our reportable segments are shown in the following table (net of inter-segment transfers): First Quarter (In thousands) 2020 2019 Revenues Fluids systems $ 132,805 $ 160,653 Mats and integrated services 31,745 50,820 Total revenues $ 164,550 $ 211,473 Operating income (loss) Fluids systems $ (2,268) $ 3,874 Mats and integrated services 3,062 13,538 Corporate office (6,680) (11,733) Total operating income (loss) $ (5,886) $ 5,679 |
Schedule of disaggregated revenues, geographic | The following table presents further disaggregated revenues for the Fluids Systems segment: First Quarter (In thousands) 2020 2019 United States $ 73,660 $ 103,059 Canada 13,260 13,266 Total North America 86,920 116,325 EMEA 42,137 37,765 Other 3,748 6,563 Total International 45,885 44,328 Total Fluids Systems revenues $ 132,805 $ 160,653 |
Schedule of disaggregated revenues, segments | The following table presents further disaggregated revenues for the Mats and Integrated Services segment: First Quarter (In thousands) 2020 2019 Service revenues $ 14,101 $ 21,150 Rental revenues 13,502 21,580 Product sales revenues 4,142 8,090 Total Mats and Integrated Services revenues $ 31,745 $ 50,820 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction to opening retained earnings | $ (120,501) | $ (133,384) | $ (134,119) |
ASU 2016-03 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction to opening retained earnings | $ 735 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Cumulative Effect of the Changes Made to Consolidated Balance Sheet for the Adoption of New Guidance (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables, net | $ 197,440 | $ 215,755 | $ 216,714 |
Deferred tax assets | 5,077 | 3,659 | 3,600 |
Deferred tax liabilities | 32,614 | 34,082 | 34,247 |
Retained earnings | $ 120,501 | 133,384 | $ 134,119 |
Impact of Adoption of New Credit Losses Guidance | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables, net | (959) | ||
Deferred tax assets | 59 | ||
Deferred tax liabilities | (165) | ||
Retained earnings | $ (735) |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator | ||
Net income (loss) - basic and diluted | $ (12,148) | $ 1,282 |
Denominator | ||
Weighted average common shares outstanding - basic (in shares) | 89,645 | 90,111 |
Dilutive effect of stock options and restricted stock awards (in shares) | 0 | 2,267 |
Dilutive effect of 2021 Convertible Notes (in shares) | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 89,645 | 92,378 |
Net income (loss) per common share | ||
Basic (in dollars per share) | $ (0.14) | $ 0.01 |
Diluted (in dollars per share) | $ (0.14) | $ 0.01 |
Stock options and restricted stock excluded from calculation of diluted earnings per share because anti-dilutive for the period (in shares) | 4,835 | 1,712 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Mar. 31, 2020$ / shares |
Convertible Notes | Senior notes | |
Debt Instrument [Line Items] | |
Debt instrument, convertible, conversion price (in dollars per share) | $ 9.33 |
Repurchase Program (Details)
Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, remaining authorized repurchase amount | $ 67,200 | ||
Shares repurchased (in shares) | 0 | 655,666 | |
Shares repurchased, value | $ 5,013 | ||
Convertible Notes | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchased face amount | $ 14,500 | $ 0 | |
Repurchase amount | $ 13,800 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Trade receivables: | |||
Gross trade receivables | $ 188,576 | $ 207,554 | |
Allowance for credit losses | (6,141) | (6,007) | |
Net trade receivables | 182,435 | 201,547 | |
Income tax receivables | 6,263 | 7,393 | |
Other receivables | 8,742 | 7,774 | |
Total receivables, net | $ 197,440 | $ 215,755 | $ 216,714 |
Receivables - Narrative (Detail
Receivables - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $ 8,742 | $ 7,774 |
Foreign | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $ 7,000 | $ 6,200 |
Receivables - Changes in Allowa
Receivables - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 6,007 | $ 10,034 | |
Cumulative effect of accounting change | $ (735) | ||
Credit loss expense | 20 | 386 | |
Write-offs, net of recoveries | (845) | (861) | |
Balance at end of period | $ 6,141 | $ 9,559 | |
ASU 2016-03 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Cumulative effect of accounting change | $ 959 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 129,074 | $ 146,363 |
Total inventory | 187,979 | 196,897 |
Fluids systems | ||
Inventory [Line Items] | ||
Raw materials | 124,623 | 141,314 |
Mats and integrated services | ||
Inventory [Line Items] | ||
Raw materials | 4,451 | 5,049 |
Finished goods | 18,013 | 10,992 |
Blended fluids systems components | ||
Inventory [Line Items] | ||
Finished goods | $ 40,892 | $ 39,542 |
Financing Arrangements and Fa_3
Financing Arrangements and Fair Value of Financial Instruments - Schedule of Financing Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal Amount | $ 172,207 | $ 172,164 |
Unamortized Discount and Debt Issuance Costs | (9,261) | (12,291) |
Total Debt | 162,946 | 159,873 |
Less: Current portion | ||
Principal Amount | (6,981) | (6,335) |
Unamortized Discount and Debt Issuance Costs | 0 | 0 |
Total Debt | (6,981) | (6,335) |
Long-term debt | ||
Principal Amount | 165,226 | 165,829 |
Unamortized Discount and Debt Issuance Costs | (9,261) | (12,291) |
Total Debt | 155,965 | 153,538 |
Other debt | ||
Debt Instrument [Line Items] | ||
Principal Amount | 7,707 | 7,164 |
Total Debt | 7,707 | 7,164 |
Revolving credit facility | ABL Facility | ||
Debt Instrument [Line Items] | ||
Principal Amount | 79,000 | 65,000 |
Total Debt | 79,000 | 65,000 |
Senior notes | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount | 85,500 | 100,000 |
Unamortized Discount and Debt Issuance Costs | (9,261) | (12,291) |
Total Debt | $ 76,239 | $ 87,709 |
Financing Arrangements and Fa_4
Financing Arrangements and Fair Value of Financial Instruments - Narrative (Details) | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)trading_day$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($) | May 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||
Principal amount outstanding | $ 172,207,000 | $ 172,164,000 | ||||
Long-term debt, excluding current maturities | 155,965,000 | 153,538,000 | ||||
Unamortized debt discount and debt issuance costs | 9,261,000 | 12,291,000 | ||||
Loss on extinguishment of debt | 915,000 | $ 0 | ||||
Current debt | 6,981,000 | 6,335,000 | ||||
Foreign operations | ||||||
Debt Instrument [Line Items] | ||||||
Current debt | $ 6,700,000 | 4,800,000 | ||||
Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible, threshold trading days | trading_day | 20 | |||||
Debt instrument, convertible, threshold consecutive trading days | trading_day | 30 | |||||
Conversion price percentage | 130.00% | |||||
Business day period | 5 days | |||||
Consecutive trading day period | 5 days | |||||
Debt conversion, principal amount as basis for conversion rate | $ 1,000 | |||||
Percent threshold last reported sale price | 98.00% | |||||
Interest rate, effective percentage | 11.30% | |||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased face amount | $ 14,500,000 | 0 | ||||
Repurchase amount | 13,800,000 | |||||
Loss on extinguishment of debt | 900,000 | |||||
Convertible Notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 100,000,000 | |||||
Principal amount outstanding | $ 85,500,000 | 100,000,000 | ||||
Interest rate, stated percentage | 4.00% | |||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 9.33 | |||||
Unamortized debt discount and debt issuance costs | $ 9,261,000 | 12,291,000 | ||||
Convertible debt, fair value | $ 63,800,000 | 101,400,000 | ||||
Convertible Notes | Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Fixed charge coverage ratio, amount | $ 25,000,000 | |||||
ABL Facility | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Base rate basis spread on variable rate | 0.50% | |||||
ABL Facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Base rate basis spread on variable rate | 1.00% | |||||
Basis spread on variable rate | 1.50% | |||||
ABL Facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
ABL Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
ABL Facility | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
ABL Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
ABL Facility | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
ABL Facility | Revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding | $ 79,000,000 | $ 65,000,000 | ||||
Maximum borrowing capacity | $ 200,000,000 | 151,000,000 | 200,000,000 | |||
Maximum borrowing capacity, maximum | $ 275,000,000 | $ 275,000,000 | ||||
Drawn | 79,000,000 | |||||
Remaining borrowing capacity | $ 72,000,000 | |||||
Fixed charge coverage ratio, amount | 22,500,000 | |||||
Debt, weighted average interest rate | 2.40% | |||||
Unused capacity, commitment fee percentage | 0.375% | |||||
Covenant terms acceleration of other indebtedness | $ 25,000,000 | |||||
ABL Facility | Revolving credit facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.25% | |||||
ABL Facility | Revolving credit facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.375% | |||||
Credit Agreement | Domestic Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding, amount | $ 49,800,000 | |||||
Restricted cash and cash equivalents, current | 7,600,000 | |||||
Convertible debt, debt component | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, excluding current maturities | 76,200,000 | |||||
Unamortized debt discount and debt issuance costs | $ 9,300,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | May 06, 2020 | |
Income Tax Contingency [Line Items] | |||
Provision for income taxes | $ 164 | $ 1,803 | |
Effective income tax rate | 58.00% | ||
Discrete tax adjustments | $ 700 | ||
Subsequent event | |||
Income Tax Contingency [Line Items] | |||
Alternative minimum tax carryforwards | $ 700 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2020plaintiff | |
Kenedy, Texas Drilling Fluids Facility Fire | Facility Fire | |
Loss Contingencies [Line Items] | |
Number of plaintiffs | 4 |
Supplemental Disclosures to t_3
Supplemental Disclosures to the Statements of Cash Flows - Supplemental Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for: | ||
Income taxes (net of refunds) | $ 1,888 | $ 3,868 |
Interest | $ 991 | $ 1,514 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Statements of Cash Flows - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 49,064 | $ 48,672 | ||
Restricted cash (included in prepaid expenses and other current assets) | 7,571 | 8,191 | ||
Cash, cash equivalents, and restricted cash | $ 56,635 | $ 56,863 | $ 62,611 | $ 64,266 |
Segment Data - Reportable Segme
Segment Data - Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Major Customer [Line Items] | ||
Revenues | $ 164,550 | $ 211,473 |
Operating income (loss) | (5,886) | 5,679 |
Fluids systems | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 132,805 | 160,653 |
Mats and integrated services | ||
Revenue, Major Customer [Line Items] | ||
Revenues | 31,745 | 50,820 |
Operating segments | Fluids systems | ||
Revenue, Major Customer [Line Items] | ||
Operating income (loss) | (2,268) | 3,874 |
Operating segments | Mats and integrated services | ||
Revenue, Major Customer [Line Items] | ||
Operating income (loss) | 3,062 | 13,538 |
Corporate office | ||
Revenue, Major Customer [Line Items] | ||
Operating income (loss) | $ (6,680) | $ (11,733) |
Segment Data - Disaggregated Re
Segment Data - Disaggregated Revenues, Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 164,550 | $ 211,473 |
Fluids systems | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 132,805 | 160,653 |
Fluids systems | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 86,920 | 116,325 |
Fluids systems | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 73,660 | 103,059 |
Fluids systems | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,260 | 13,266 |
Fluids systems | Total International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 45,885 | 44,328 |
Fluids systems | EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 42,137 | 37,765 |
Fluids systems | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,748 | $ 6,563 |
Segment Data - Disaggregated _2
Segment Data - Disaggregated Revenues, Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 164,550 | $ 211,473 |
Mats and integrated services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 31,745 | 50,820 |
Mats and integrated services | Service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,101 | 21,150 |
Mats and integrated services | Rental revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,502 | 21,580 |
Mats and integrated services | Product sales revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 4,142 | $ 8,090 |
Segment Data - Narrative (Detai
Segment Data - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Inventory write-downs | $ 1,400 | |||
Stockholders' equity | (530,359) | $ (548,645) | $ (569,788) | $ (569,681) |
Goodwill | 42,108 | 42,332 | ||
Property, plant and equipment, net | 305,732 | $ 310,409 | ||
Finite-lived intangible assets, net | 27,500 | |||
Fluids systems | ||||
Segment Reporting Information [Line Items] | ||||
Combined assets | 170,800 | |||
Mats and integrated services | ||||
Segment Reporting Information [Line Items] | ||||
Combined assets | 150,800 | |||
Operating segments | Fluids systems | ||||
Segment Reporting Information [Line Items] | ||||
Inventory write-downs | 1,200 | |||
Corporate office | ||||
Segment Reporting Information [Line Items] | ||||
Inventory write-downs | 200 | |||
Accumulated translation losses | ||||
Segment Reporting Information [Line Items] | ||||
Stockholders' equity | $ 11,600 |
Uncategorized Items - nr-202003
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (735,000) |