Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'TGC INDUSTRIES INC | ' | ' |
Entity Central Index Key | '0000799165 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $130,375,834 |
Entity Common Stock, Shares Outstanding | ' | 21,957,167 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $16,130,374 | $8,614,244 |
Trade accounts receivable | 10,742,412 | 35,640,758 |
Cost and estimated earnings in excess of billings on uncompleted contracts | 2,312,947 | 6,263,943 |
Prepaid expenses and other | 1,808,411 | 1,824,779 |
Prepaid federal and state income tax | 3,909,198 | ' |
Total current assets | 34,903,342 | 52,343,724 |
PROPERTY AND EQUIPMENT - at cost | ' | ' |
Machinery and equipment | 185,405,886 | 190,943,331 |
Automobiles and trucks | 14,272,341 | 15,265,627 |
Furniture and fixtures | 486,700 | 488,779 |
Leasehold improvements | 14,994 | 14,994 |
Total property and equipment, gross | 200,179,921 | 206,712,731 |
Less accumulated depreciation and amortization | -137,072,725 | -117,326,964 |
Total property and equipment, net | 63,107,196 | 89,385,767 |
Goodwill | 201,530 | 201,530 |
Other assets | 89,470 | 96,817 |
Total noncurrent assets | 291,000 | 298,347 |
Total assets | 98,301,538 | 142,027,838 |
CURRENT LIABILITIES | ' | ' |
Trade accounts payable | 4,097,819 | 13,680,538 |
Accrued liabilities | 2,585,993 | 5,544,071 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 653,220 | 3,757,349 |
Federal and state income tax payable | ' | 4,569,891 |
Current maturities of notes payable | 8,434,879 | 10,615,279 |
Current portion of capital lease obligations | 1,423,268 | 1,960,503 |
Total current liabilities | 17,195,179 | 40,127,631 |
NOTES PAYABLE, less current maturities | 6,483,112 | 14,412,598 |
CAPITAL LEASE OBLIGATIONS, less current portion | 901,707 | 1,884,937 |
LONG-TERM DEFERRED TAX LIABILITY | 4,590,739 | 7,617,111 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock, $1.00 par value; 4,000,000 shares authorized; issued - none | ' | ' |
Common stock, $0.01 par value; 35,000,000 and 25,000,000 shares authorized; 22,090,127 and 20,732,500 shares issued and outstanding in each period, respectively | 220,901 | 207,325 |
Additional paid-in capital | 31,508,662 | 29,573,986 |
Retained earnings | 41,757,515 | 48,073,556 |
Treasury stock, at cost; 145,335 and 80,076 shares in each period, respectively | -1,251,099 | -691,009 |
Accumulated other comprehensive income (loss) - foreign currency translation adjustments | -3,105,178 | 821,703 |
Total shareholders' equity | 69,130,801 | 77,985,561 |
Total liabilities and shareholders' equity | $98,301,538 | $142,027,838 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 35,000,000 | 25,000,000 |
Common stock, shares issued | 22,090,127 | 20,732,500 |
Common stock, shares outstanding | 22,090,127 | 20,732,500 |
Treasury stock, shares | 145,335 | 80,076 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Revenue | $134,534,540 | $196,317,215 | $151,028,582 |
Cost and expenses | ' | ' | ' |
Cost of services | 107,675,356 | 135,279,937 | 104,022,944 |
Selling, general and administrative | 9,593,068 | 8,755,270 | 9,626,679 |
Depreciation and amortization expense | 24,644,190 | 25,502,597 | 19,214,069 |
Total cost and expenses | 141,912,614 | 169,537,804 | 132,863,692 |
Income (loss) from operations | -7,378,074 | 26,779,411 | 18,164,890 |
Interest expense | 1,091,476 | 1,222,454 | 784,425 |
Income (loss) before income taxes | -8,469,550 | 25,556,957 | 17,380,465 |
Income tax expense (benefit): | ' | ' | ' |
Current | 1,155,204 | 9,525,543 | 4,077,297 |
Deferred | -3,308,713 | 359,535 | 2,469,953 |
Income tax expense (benefit): | -2,153,509 | 9,885,078 | 6,547,250 |
Net income (loss) | ($6,316,041) | $15,671,879 | $10,833,215 |
Net income (loss) per common share: | ' | ' | ' |
Basic (in dollars per share) | ($0.29) | $0.73 | $0.51 |
Diluted (in dollars per share) | ($0.29) | $0.72 | $0.50 |
Weighted average number of shares outstanding: | ' | ' | ' |
Basic (in shares) | 21,841,582 | 21,513,638 | 21,215,800 |
Diluted (in shares) | 21,841,582 | 21,898,376 | 21,548,401 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Statements of Comprehensive Income (Loss) | ' | ' | ' |
Net Income (loss) | ($6,316,041) | $15,671,879 | $10,833,215 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | -3,926,881 | 714,576 | -641,538 |
Comprehensive income (loss) | ($10,242,922) | $16,386,455 | $10,191,677 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Balances at Dec. 31, 2010 | $52,862,800 | $192,423 | $27,512,709 | $24,666,326 | ($257,323) | $748,665 |
Balances (in shares) at Dec. 31, 2010 | ' | 19,242,251 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock awards | 224,999 | 318 | 224,681 | ' | ' | ' |
Issuance of common stock awards (in shares) | 109,347 | 31,851 | ' | ' | ' | ' |
Issuance (rescindment) of restricted common stock | ' | 150 | -150 | ' | ' | ' |
Issuance (rescindment) of restricted common stock (in shares) | ' | 15,000 | ' | ' | ' | ' |
Exercise of stock options | 181,505 | 593 | 180,912 | ' | ' | ' |
Exercise of stock options (in shares) | 59,334 | 59,334 | ' | ' | ' | ' |
Amortization of unearned compensation restricted stock awards | 28,603 | ' | 28,603 | ' | ' | ' |
Amortization of compensation cost of unvested stock options | 230,167 | ' | 230,167 | ' | ' | ' |
Purchase of treasury shares | -71 | ' | ' | ' | -71 | ' |
Foreign currency translation adjustments | -641,538 | ' | ' | ' | ' | -641,538 |
Net income (loss) | 10,833,215 | ' | ' | 10,833,215 | ' | ' |
Balances at Dec. 31, 2011 | 63,719,680 | 193,484 | 28,176,922 | 35,499,541 | -257,394 | 107,127 |
Balances (in shares) at Dec. 31, 2011 | ' | 19,348,436 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
5% common stock dividend | -1,150 | 9,720 | -10,870 | ' | ' | ' |
5% common stock dividend (in shares) | ' | 971,990 | ' | ' | ' | ' |
Cash dividend | -3,097,864 | ' | ' | -3,097,864 | ' | ' |
Issuance of common stock awards (in shares) | 143,602 | ' | ' | ' | ' | ' |
Issuance (rescindment) of restricted common stock | ' | 2,191 | -2,191 | ' | ' | ' |
Issuance (rescindment) of restricted common stock (in shares) | ' | 219,125 | ' | ' | ' | ' |
Exercise of stock options | 377,380 | 1,929 | 809,066 | ' | -433,615 | ' |
Exercise of stock options (in shares) | 192,949 | 192,949 | ' | ' | ' | ' |
Amortization of unearned compensation restricted stock awards | 317,109 | ' | 317,109 | ' | ' | ' |
Amortization of compensation cost of unvested stock options | 283,950 | ' | 283,950 | ' | ' | ' |
Foreign currency translation adjustments | 714,576 | ' | ' | ' | ' | 714,576 |
Net income (loss) | 15,671,879 | ' | ' | 15,671,879 | ' | ' |
Balances at Dec. 31, 2012 | 77,985,561 | 207,325 | 29,573,986 | 48,073,556 | -691,009 | 821,703 |
Balances (in shares) at Dec. 31, 2012 | 20,732,500 | 20,732,500 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
5% common stock dividend | -939 | 10,382 | -11,321 | ' | ' | ' |
5% common stock dividend (in shares) | ' | 1,038,224 | ' | ' | ' | ' |
Issuance of common stock awards (in shares) | 117,611 | ' | ' | ' | ' | ' |
Issuance (rescindment) of restricted common stock | 273,067 | -90 | 273,157 | ' | ' | ' |
Issuance (rescindment) of restricted common stock (in shares) | ' | -9,000 | ' | ' | ' | ' |
Exercise of stock options | 416,390 | 3,284 | 973,196 | ' | -560,090 | ' |
Exercise of stock options (in shares) | 328,403 | 328,403 | ' | ' | ' | ' |
Amortization of unearned compensation restricted stock awards | 492,692 | ' | 492,692 | ' | ' | ' |
Amortization of compensation cost of unvested stock options | 206,952 | ' | 206,952 | ' | ' | ' |
Foreign currency translation adjustments | -3,926,881 | ' | ' | ' | ' | -3,926,881 |
Net income (loss) | -6,316,041 | ' | ' | -6,316,041 | ' | ' |
Balances at Dec. 31, 2013 | $69,130,801 | $220,901 | $31,508,662 | $41,757,515 | ($1,251,099) | ($3,105,178) |
Balances (in shares) at Dec. 31, 2013 | 22,090,127 | 22,090,127 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 0 Months Ended | 12 Months Ended | ||
14-May-13 | 14-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ' | ' | ' | ' |
Percentage of dividend paid on common stock | 5.00% | 5.00% | 5.00% | 5.00% |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows from operating activities | ' | ' | ' |
Net income (loss) | ($6,316,041) | $15,671,879 | $10,833,215 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 24,644,190 | 25,502,597 | 19,214,069 |
Gain on disposal of property and equipment | -676,422 | -1,069,766 | -441,524 |
Stock-based compensation | 972,711 | 601,059 | 483,769 |
Deferred income taxes | -3,308,713 | 359,535 | 2,469,953 |
Changes in operating assets and liabilities | ' | ' | ' |
Trade accounts receivable | 24,086,780 | -16,021,574 | -2,442,223 |
Cost and estimated earnings in excess of billings on uncompleted contracts | 3,950,483 | -1,121,420 | -589,429 |
Prepaid expenses and other | 3,230,777 | 2,820,516 | 2,326,499 |
Prepaid federal and state income tax | -3,777,853 | 78,268 | 1,145,437 |
Other assets | 3,755 | -17,991 | -18,035 |
Trade accounts payable | -9,439,503 | 4,328,707 | 2,763,004 |
Accrued liabilities | -2,856,390 | 2,911,755 | 823,278 |
Billings in excess of cost and estimated earnings on uncompleted contracts | -3,068,487 | 2,814,863 | -4,550,293 |
Federal and state income tax payable | -4,475,945 | 2,424,634 | 2,156,447 |
Net cash provided by operating activities | 22,969,342 | 39,283,062 | 34,174,167 |
Cash flows from investing activities | ' | ' | ' |
Capital expenditures | -1,848,678 | -31,970,418 | -22,011,503 |
Proceeds from sale of property and equipment | 1,181,180 | 1,704,722 | 740,658 |
Net cash used in investing activities | -667,498 | -30,265,696 | -21,270,845 |
Cash flows from financing activities | ' | ' | ' |
Principal payments on notes payable | -13,342,462 | -11,338,097 | -9,006,101 |
Principal payments on capital lease obligations | -2,069,661 | -2,081,176 | -1,348,164 |
Proceeds from exercise of stock options | 416,390 | 377,381 | 181,505 |
Purchase of treasury shares | ' | ' | -71 |
Payment of dividends | -939 | -3,099,014 | ' |
Net cash used in financing activities | -14,996,672 | -16,140,906 | -10,172,831 |
Net increase (decrease) in cash and cash equivalents | 7,305,172 | -7,123,540 | 2,730,491 |
Effect of exchange rates on cash | 210,958 | -7,775 | -57,435 |
Cash and cash equivalents at beginning of year | 8,614,244 | 15,745,559 | 13,072,503 |
Cash and cash equivalents at end of year | 16,130,374 | 8,614,244 | 15,745,559 |
Supplemental cash flow information | ' | ' | ' |
Interest paid | 1,129,581 | 1,222,454 | 784,425 |
Income taxes paid | 9,474,481 | 7,022,640 | 774,136 |
Noncash investing and financing activities | ' | ' | ' |
Capital lease obligations incurred | 626,187 | 2,935,514 | 1,953,263 |
Financed equipment purchase | ' | 22,201,800 | 6,765,619 |
Financed insurance premiums | 3,237,881 | 3,050,024 | 2,336,121 |
Restricted stock awards to employees, net of cancellations | 25,440 | 1,334,014 | 101,475 |
Stock awards to employees | ' | ' | 225,000 |
Treasury shares issued for stock options exercised | $560,090 | $433,615 | ' |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2013 | |
NATURE OF OPERATIONS | ' |
NATURE OF OPERATIONS | ' |
NOTE A - NATURE OF OPERATIONS | |
TGC Industries, Inc. (“TGC” or the “Company”) is engaged in the geophysical services business and primarily conducts seismic surveys and sells gravity data to companies engaged in exploration in the oil and gas industry in the U.S. and Canada. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of TGC Industries, Inc. and its wholly-owned subsidiary, Eagle Canada, Inc. We have eliminated all significant intercompany accounts and transactions. | |
Business Combinations | |
We record acquisitions using the purchase method of accounting and, accordingly, have included the results of operations of acquired businesses in our consolidated results from the date of each acquisition. We allocate the purchase price of our acquisitions to the tangible assets, liabilities, and intangible assets acquired based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The fair value assigned to assets acquired is based on valuations provided by independent consultants and using management’s estimates and assumptions. | |
Foreign Currency | |
The functional currency of the Company’s international subsidiary is the local currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. The resulting translation adjustments are recorded directly into a separate component of stockholders’ equity and represents the only component of accumulated other comprehensive income (loss). | |
Cash Equivalents | |
The Company considers all highly liquid investments with original maturity dates of three months or less to be cash equivalents. The Company maintains its accounts at financial institutions located in Texas and Alberta, Canada. The Texas bank accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Alberta bank accounts are insured by the Canadian Depository Insurance Corporation up to $100,000 Canadian. | |
Trade Accounts Receivable | |
Trade accounts receivable are recorded in accordance with terms and amounts as specified in the related contracts on an ongoing basis. The Company evaluates the collectability of accounts receivable on a specific account basis using a combination of factors including the age of the outstanding balances, evaluation of the customer’s financial condition, and discussions with relevant Company personnel and with the customers directly. An allowance for doubtful accounts or direct write-off is recorded when it is determined that the receivable may not be collected, depending on the facts known and the probability of collection of the outstanding amount. | |
Property and Equipment | |
Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the individual assets ranging from 1 to 7 years. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |
Long-Lived Assets | |
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted cash flows estimated to be generated by those assets. No impairment charge was necessary at December 31, 2013, 2012, and 2011. | |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, in accordance with ASC Topic 740 (“Topic 740”). Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The components of the deferred tax assets and liabilities are individually classified as current or non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In accordance with Topic 740, the Company recognizes in its financial statements the impact of a tax position if that position is “more likely than not” to be sustained on audit, based on the technical merits of the position. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. Interest and penalties related to unrecognized tax benefits, if any, are recorded as income tax expense. See Note H for further information. | |
Revenue Recognition | |
Seismic Surveys | |
The Company provides seismic data acquisition survey services to its customers under general service agreements which define certain obligations for the Company and for its customers. We typically enter into a supplemental agreement setting forth the terms of each project, which may be cancelled by either party upon 30 days’ advance written notice. These supplemental agreements are either “turnkey” agreements providing for a fixed fee to be paid for each unit of seismic data acquired or “term” agreements providing for a fixed hourly, daily, or monthly fee during the term of the project. Under both types of agreements, the Company recognizes revenues when services have been performed and revenue is realizable. Services are defined as the commencement of data acquisition. Revenues are deemed realizable when earned according to the terms of the contracts. Under turnkey agreements, the total number of units of seismic data to be gathered is set forth in the agreement. Revenue under turnkey agreements is recognized on a per unit of seismic data acquired rate as services are performed. Revenue under term agreements is recognized on a per unit of time worked rate as services are performed based on the time worked rate provided in the term agreement. In the event of a cancelled contract, revenue is recognized and the client is billed for services performed to the date of contract cancellation. When it becomes evident that the estimates of total costs to be incurred on a contract will exceed the total estimates of revenue to be earned, an estimated loss is recognized in the period in which the loss is identifiable. The asset “Cost and estimated earnings in excess of billings on uncompleted contracts” represents cost incurred on turnkey agreements in excess of billings on those agreements. The liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings on turnkey agreements in excess of cost on those agreements. | |
Accumulated Other Comprehensive Income | |
Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss. Other comprehensive income or loss results from items deferred from recognition in the statement of earnings, which consists solely of foreign currency translation adjustments. Accumulated other comprehensive income (loss) is presented on the Company’s consolidated balance sheet as a part of stockholder’s equity. In addition, the Company reports comprehensive income and its components in a separate statement of comprehensive income. | |
Foreign currency translation income or loss represents changes in foreign currency rates used to translate the assets, liabilities, revenues and expenses of the Company’s international subsidiary from the local currency. These changes in foreign currency rates may never be realized or may only be partially realized upon the ultimate disposition, if any, of the international subsidiary. The Company’s foreign investment is considered permanent in nature as there are no plans in the foreseeable future for divestiture. | |
Reclassifications | |
Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 presentation. | |
Share-Based Compensation | |
The Company has two stock-based compensation plans, which are described more fully in Note G. The Company recognizes the fair value of the share-based compensation awards as wages in the Statements of Operations on a straight-line basis over the vesting period. As a result, during the years ended December 31, 2013, 2012, and 2011, the Company recognized compensation expense for unvested stock options of $206,952, $283,950, and $230,167, respectively, and unvested restricted stock of $492,692, $317,109, and $28,603, respectively. | |
No incentive stock options were granted during the years ended December 31, 2013 and 2012. For the year ended December 31, 2011, the fair value of the single option grant was estimated on the date of the grant using the Binomial Lattice option pricing model with the following assumptions used for the outstanding grants: risk-free interest rate of 0.40%; expected dividend yield of 0.0%; expected life of 5.0 years; and expected volatility of 61.0%. | |
Financial Instruments | |
The Company’s financial instruments recorded on the consolidated balance sheet include cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of the short-term nature of these items. The carrying amounts of debt obligations approximate fair value due to their relative short-term maturities and their contract rates which approximate market. | |
Earnings Per Share | |
Basic earnings per common share are based upon the weighted average number of shares of common stock outstanding. Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities. | |
All share and per share amounts for the years ended December 31, 2013, 2012 and 2011, have been adjusted to reflect 5% stock dividends paid May 14, 2013 and May 14, 2012 to shareholders of record as of April 30, 2013, and April 30, 2012, respectively. No stock dividends were declared or paid during the year ended December 31, 2011. | |
Use of Estimates | |
The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. | |
Recent Accounting Standards | |
In July of 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2012-02, Intangibles-Goodwill and Other (Topic 350) — Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). This ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under accounting principles generally accepted in the United States (“U.S. GAAP”). The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this update in the first quarter of 2013, and it did not have a significant effect on its consolidated financial statements and related disclosures. | |
In July of 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This ASU clarifies the balance sheet presentation of an unrecognized tax benefit and was issued to resolve the diversity in practice that had developed in the absence any specific U.S. GAAP. ASU 2013-11 is applicable to all entities that have an unrecognized tax benefit due to a net operating loss carryforward, a similar tax loss, of a tax credit carryforward. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and does not create any new disclosure requirements. The Company will adopt ASU 2013-11 on January 1, 2014. The Company anticipates that the adoption of ASU 2013-11 will not have a significant effect on its consolidated financial statements. |
COSTS_BILLINGS_AND_ESTIMATED_E
COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | ' | |||||||
COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | ' | |||||||
NOTE C — COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | ||||||||
The components of uncompleted contracts are as follows at December 31: | ||||||||
2013 | 2012 | |||||||
Costs incurred on uncompleted contracts and estimated earnings | $ | 2,476,716 | $ | 11,299,753 | ||||
Less billings to date | (816,989 | ) | (8,793,159 | ) | ||||
$ | 1,659,727 | $ | 2,506,594 | |||||
The components of uncompleted contracts are reflected in the consolidated balance sheets as follows at December 31: | ||||||||
2013 | 2012 | |||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 2,312,947 | $ | 6,263,943 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (653,220 | ) | (3,757,349 | ) | ||||
$ | 1,659,727 | $ | 2,506,594 | |||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
ACCRUED LIABILITIES | ' | |||||||
NOTE D - ACCRUED LIABILITIES | ||||||||
Accrued liabilities consist of the following at December 31: | ||||||||
2013 | 2012 | |||||||
Compensation and payroll taxes | $ | 1,091,191 | $ | 2,004,444 | ||||
Accrued sales and use tax | 56,486 | 336,870 | ||||||
Insurance | 40,193 | 335,412 | ||||||
Accrued interest | 35,000 | 73,105 | ||||||
Other | 1,363,123 | 2,794,240 | ||||||
$ | 2,585,993 | $ | 5,544,071 |
DEBT
DEBT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
DEBT | ' | |||||||
DEBT | ' | |||||||
NOTE E - DEBT | ||||||||
Line of Credit | ||||||||
In September of 2012, and again in September of 2013, the Company renewed its revolving line of credit allowing the Company to borrow, repay, and re-borrow, from time to time, up to $5,000,000. Interest on the outstanding amount under the line of credit loan agreement is payable monthly at the greater of the prime rate of interest or five percent. The credit loan agreement is secured by a security interest in our accounts receivable. As of December 31, 2013, and since its inception, we have had no borrowings outstanding under the line of credit loan agreement. The line of credit expires September 16, 2014. | ||||||||
Notes Payable | ||||||||
Notes payable consists of the following at December 31: | ||||||||
2013 | 2012 | |||||||
Notes payable to commercial banks | ||||||||
Four outstanding notes payable as of 12/31/2013 with interest between 3.50% and 4.60%, due in monthly installments between $128,363 and $215,863 plus interest; collateralized by equipment | $ | 14,416,225 | $ | 24,553,291 | ||||
Notes payable to finance companies for insurance | ||||||||
Two outstanding notes payable as of 12/31/2013 with interest between 4.00% and 4.95%, due in monthly installments between $18,831 and $329,823 including interest | 501,766 | 474,586 | ||||||
$ | 14,917,991 | $ | 25,027,877 | |||||
Less current maturities | (8,434,879 | ) | (10,615,279 | ) | ||||
$ | 6,483,112 | $ | 14,412,598 | |||||
Aggregate annual maturities of notes payable at December 31, 2013 are as follows: | ||||||||
Year Ending | ||||||||
December 31, | ||||||||
2014 | $ | 8,434,879 | ||||||
2015 | $ | 4,814,389 | ||||||
2016 | $ | 1,540,360 | ||||||
2017 | $ | 128,363 | ||||||
2018 | $ | — | ||||||
$ | 14,917,991 | |||||||
LEASES
LEASES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES | ' | ||||
LEASES | ' | ||||
NOTE F — LEASES | |||||
Capital Lease Obligations | |||||
The Company leases vehicles and certain specialized seismic equipment under leases classified as capital leases. The following is a schedule showing the future minimum lease payments under capital leases by years and the present value of the minimum lease payments as of December 31, 2013. | |||||
Year Ending | |||||
December 31, | |||||
2014 | $ | 1,523,229 | |||
2015 | 784,925 | ||||
2016 | 150,572 | ||||
2017 | — | ||||
Total minimum lease payments required | 2,458,726 | ||||
Less: Amount representing interest | (133,751 | ) | |||
Present value of minimum lease payments | 2,324,975 | ||||
Less current maturities | (1,423,268 | ) | |||
$ | 901,707 | ||||
The net book value of the capital assets leased was approximately $2,954,000 and $4,957,000 as of December 31, 2013 and 2012, respectively. Total accumulated depreciation for fixed assets under capital lease with remaining obligations was approximately $7,221,000 and $5,114,000 as of December 31, 2013, and 2012, respectively. Interest rates on these leases range from 4.58% to 8.17%. | |||||
Operating Lease Obligations | |||||
The Company leases five offices and two warehouse facilities under operating leases that expire at various dates between April 2014 and October 2018 with one lease on a month-to-month basis. One of the office facilities, used by the Company as its corporate headquarters, is located in Plano, Texas. One of the office facilities, used by Eagle Canada, is located in Calgary, Alberta. The warehouse facilities, used as warehouse and equipment repair facilities, are located in Denison, Texas, and Calgary, Alberta. Two office facilities are used as sales offices and are located in Houston, Texas, and Midland, Texas. On October 31, 2013, we closed our sales office in Oklahoma City, Oklahoma. The remaining office facility, located in Pratt, Kansas, is used as a permitting office. Rent expense for these facilities for the years ended December 31, 2013, 2012, and 2011 was approximately $750,000, $700,000, and $605,000, respectively. | |||||
The following is a schedule by years of future minimum rental payments required under the operating leases as of December 31, 2013: | |||||
2014 | $ | 642,340 | |||
2015 | 467,755 | ||||
2016 | 371,354 | ||||
2017 | 244,845 | ||||
2018 and thereafter | 104,934 | ||||
Total minimum payments required | $ | 1,831,228 | |||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||
NOTE G — SHAREHOLDERS’ EQUITY | |||||||||||
Net Income (Loss) Per Share | |||||||||||
The following is a reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Net income (loss) | $ | (6,316,041 | ) | $ | 15,671,879 | $ | 10,833,215 | ||||
Denominator: | |||||||||||
Basic - weighted average common shares outstanding | 21,841,582 | 21,513,638 | 21,215,800 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Stock options | — | 384,738 | 332,601 | ||||||||
21,841,582 | 21,898,376 | 21,548,401 | |||||||||
Basic net income (loss) per share | $ | (0.29 | ) | $ | 0.73 | $ | 0.51 | ||||
Diluted net income (loss) per share | $ | (0.29 | ) | $ | 0.72 | $ | 0.5 | ||||
Outstanding options that were not included in the diluted calculation because their effect would be anti-dilutive totaled 35,373 and 44,370 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||
All share and per share amounts have been adjusted to reflect 5% stock dividends paid May 14, 2013, and May 14, 2012, to shareholders of record as of April 30, 2013, and April 30, 2012. | |||||||||||
Share-Based Compensation Plans | |||||||||||
The Company currently has in effect a 2006 stock award plan (the “2006 Plan”). At the June 11, 2010 Annual Meeting of Shareholders, the shareholders approved an increase of 2,000,000 shares of common stock for issuance under the 2006 Plan. This increased the total aggregate number of shares of common stock under the 2006 Plan to 3,000,000 shares. The 2006 Plan provides for the granting of stock options, common stock, and restricted stock. The 2006 Plan is administered by a committee of the Board of Directors (the “Committee”). Currently the Committee is comprised of three directors. Any stock options granted under the 2006 Plan will be exercisable as set forth in the option agreements pursuant to which they are issued, but in no event will stock options be exercisable after the expiration of five (5) years from the date of grant. Outstanding options, under the 2006 Plan at December 31, 2013, have vesting periods ranging from the date of grant to the third annual anniversary of the grant. | |||||||||||
During 2013, 117,611 options were granted, and 391,733 options were exercised or cancelled under the 2006 Plan. During 2012, 143,602 options were granted, and 244,445 options were exercised or cancelled under the 2006 Plan. During 2011, 109,347 options were granted, and 80,334 options were exercised or cancelled under the 2006 Plan. Restricted stock consists of shares that are transferred by the Company to a participant, but are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer by the participant. Any restricted stock granted or issued under the 2006 Plan will vest as set forth in the restricted stock agreement pursuant to which it was issued or granted. The provisions of the restricted stock agreements need not be the same with respect to each participant. In November of 2011, December of 2011, January of 2012, August of 2012, February 1, 2013 and June 25, 2013, the Committee granted 25,331, 21,520, 6,000, 213,125, 6,000, and 30,000 shares of restricted stock, respectively. On April 30, 2013, the Committee rescinded 45,000 shares of restricted stock previously granted in August of 2012. The shares of restricted stock were issued in the names of the grantees and had restrictive legends prohibiting their sales prior to vesting. Vesting periods, for restricted stock issued to date, range from at grant date to the third annual anniversary of the grant. Upon vesting, a new certificate is issued for the vested portion without the restrictive legend. | |||||||||||
During the years ended December 31, 2013, 2012, and 2011, the Company recognized compensation expense associated with the restricted stock of $492,692, $317,109, and $28,603, respectively. During the years ended December 31, 2013, 2012, and 2011, no unamortized deferred stock-based compensation was related to any employee that left the Company. | |||||||||||
During the years ended December 31, 2013, 2012, and 2011, the Company recognized compensation expense associated with unvested options of $206,952, $283,950, and $230,167, respectively. | |||||||||||
The following table summarizes activity under the 2006 Plan: | |||||||||||
Weighted | |||||||||||
Shares under | Average | ||||||||||
Option | exercise price | ||||||||||
Balance at December 31, 2010 | 803,681 | $ | 3.63 | ||||||||
Granted | 109,347 | $ | 5.78 | ||||||||
Exercised | (59,334 | ) | $ | 3.06 | |||||||
Canceled | (21,000 | ) | $ | 4.1 | |||||||
Balance at December 31, 2011 | 832,694 | $ | 3.97 | ||||||||
Granted | 143,602 | $ | 6.86 | ||||||||
Exercised | (192,949 | ) | $ | 4.2 | |||||||
Canceled | (51,496 | ) | $ | 8.94 | |||||||
Balance at December 31, 2012 | 731,851 | $ | 4.16 | ||||||||
Granted | 117,611 | $ | 7.61 | ||||||||
Exercised | (328,403 | ) | $ | 2.97 | |||||||
Canceled | (63,330 | ) | $ | 6.61 | |||||||
Balance at December 31, 2013 | 457,729 | $ | 5.31 | ||||||||
The following information applies to options outstanding and exercisable at December 31, 2013: | |||||||||||
Weighted | |||||||||||
average | |||||||||||
remaining | Weighted | ||||||||||
Range of | Number | contractual | average | ||||||||
Exercise prices | outstanding | life (in years) | exercise price | ||||||||
Outstanding options | $3.52 – $7.18 | 457,729 | 2.84 | $ | 5.31 | ||||||
Exercisable options | $3.52 – $7.18 | 402,724 | 2.58 | $ | 5.08 | ||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE H - INCOME TAXES | |||||||||||
The income tax provision (benefit) charged to continuing operations for the years ended December 31, 2013, 2012, and 2011, was as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
U.S. federal | $ | — | $ | 3,947,400 | $ | 35,561 | |||||
Foreign | 949,207 | 5,313,874 | 3,343,374 | ||||||||
State and local | 205,997 | 264,269 | 698,362 | ||||||||
1,155,204 | 9,525,543 | 4,077,297 | |||||||||
Deferred expense (benefit) | (3,308,713 | ) | 359,535 | 2,469,953 | |||||||
$ | (2,153,509 | ) | $ | 9,885,078 | $ | 6,547,250 | |||||
The components of the Company’s income (loss) before income tax expense attributable to domestic and foreign operations amounted to $(12,635,002) and $4,165,452, respectively, for the year ended December 31, 2013. The components of the Company’s income before income tax expense attributable to domestic and foreign operations amounted to $6,018,971 and $19,537,986, respectively, for the year ended December 31, 2012. The components of the Company’s income before income tax expense attributable to domestic and foreign operations amounted to $6,085,192 and $11,295,273, respectively, for the year ended December 31, 2011. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate (34% for 2013, 35% for 2012, and 34% for 2011) to pretax income (loss) from continuing operations for the years ended December 31, 2013, 2012, and 2011, due to the following: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Computed “expected” tax expense | $ | (2,879,647 | ) | $ | 8,944,935 | $ | 5,909,358 | ||||
Increase (decrease) in income taxes resulting from: | |||||||||||
Change in effective rates used for deferred taxes | — | — | (503,693 | ) | |||||||
Nondeductible expenses and other | 590,180 | 768,652 | 534,742 | ||||||||
State and local taxes, net of federal benefit | 135,958 | 171,491 | 606,843 | ||||||||
$ | (2,153,509 | ) | $ | 9,885,078 | $ | 6,547,250 | |||||
Net deferred tax liabilities consist of the following components as of December 31, 2013 and 2012: | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets | |||||||||||
Foreign tax credits | $ | 244,898 | $ | 473,405 | |||||||
Net operating loss carry forwards | 61,139 | 462,548 | |||||||||
Other | 88,911 | 92,983 | |||||||||
Total deferred tax assets | 394,948 | 1,028,936 | |||||||||
Deferred tax liability | |||||||||||
Property, equipment, and intangible asset | (4,985,687 | ) | (8,646,047 | ) | |||||||
Net deferred tax liabilities | $ | (4,590,739 | ) | $ | (7,617,111 | ) | |||||
The components giving rise to the net deferred tax items described above have been included in the accompanying balance sheets as of December 31, 2013 and 2012, as follows: | |||||||||||
2013 | 2012 | ||||||||||
Current assets | $ | — | $ | — | |||||||
Noncurrent (liabilities) | (4,590,739 | ) | (7,617,111 | ) | |||||||
$ | (4,590,739 | ) | $ | (7,617,111 | ) | ||||||
As of December 31, 2013, the Company has U.S. net operating loss carry forwards for U.S. federal income tax purposes of approximately $180,000. These net operating losses are available to offset future federal taxable income, if any, and expire from 2027 through 2029. The amount of net operating loss carry forwards that may reduce federal income taxes in any given year are subject to annual limitations and taxable income requirements. The foreign tax credit of $244,898 expires mostly by 2020. | |||||||||||
The Company files a U.S. consolidated federal income tax return for operating activities in the U.S. and Canada. The Company also files federal and local tax returns in Canada, as well as state tax returns in a number of state and local jurisdictions in the U.S. The Company’s U.S. federal income tax returns filed for 2010 through 2012 are subject to audit by the IRS. The Company’s income tax returns filed in Canada for 2010 through 2012 remain subject to examination by Canadian authorities. As of December 31, 2013 and 2012, the Company had no unrecognized tax benefits within its provision for income taxes. |
401k_PLAN
401(k) PLAN | 12 Months Ended |
Dec. 31, 2013 | |
401(k) PLAN | ' |
401(k) PLAN | ' |
NOTE I - 401(k) PLAN | |
The Company has a 401(k) salary deferral plan which covers all employees who have reached the age of 21 years and have been employed by the Company for at least one year. The covered employees may elect to have an amount deducted from their wages for investment in the retirement plan. The Company makes contributions to the plan equal to 50% of each participant’s salary reduction contributions to the plan up to 6% of the participant’s compensation. The Company’s matching contribution to the plan was approximately $158,000, $113,000, and $98,000, for the years ended December 31, 2013, 2012, and 2011, respectively. |
CONCENTRATION_OF_CREDIT_RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2013 | |
CONCENTRATION OF CREDIT RISK | ' |
CONCENTRATION OF CREDIT RISK | ' |
NOTE J - CONCENTRATION OF CREDIT RISK | |
The Company sells its geophysical services primarily to large independent oil and gas companies operating in the U.S. and Canada. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. | |
During the years ended December 31, 2013, 2012, and 2011, our largest customers accounted for approximately 12%, 16%, and 17% of revenues, respectively. As of December 31, 2013, three customers accounted for 27%, 16% and 15% of outstanding accounts receivable. As of December 31, 2012, and 2011, two customers accounted for 29% and 23%, and 13% and 12%, of outstanding accounts receivable, respectively. During 2012, one vendor represented 12% of our purchases. During 2013 and 2011, no vendor represented over 10% of our purchases. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
CONTINGENCIES | ' |
CONTINGENCIES | ' |
NOTE K - CONTINGENCIES | |
In conducting its activities, the Company from time to time is the subject of various claims arising from the ordinary course of business. In the opinion of management, it is remote that these claims will be material to the Company’s results of operations and liquidity. |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA - (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
QUARTERLY FINANCIAL DATA - (UNAUDITED) | ' | |||||||||||||
QUARTERLY FINANCIAL DATA - (UNAUDITED) | ' | |||||||||||||
NOTE L — QUARTERLY FINANCIAL DATA — (UNAUDITED) | ||||||||||||||
The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||||||
Three Months Ended | ||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | ||||||||||
Revenues | $ | 63,204 | $ | 31,487 | $ | 21,115 | $ | 18,728 | ||||||
Income (loss) from operations | 10,905 | (5,620 | ) | (5,827 | ) | (6,836 | ) | |||||||
Net income (loss) | 6,351 | (4,004 | ) | (3,952 | ) | (4,712 | ) | |||||||
Net income (loss) per share basic | 0.29 | (0.18 | ) | (0.18 | ) | (0.21 | ) | |||||||
Net income (loss) per share diluted | 0.29 | (0.18 | ) | (0.18 | ) | (0.21 | ) | |||||||
Three Months Ended | ||||||||||||||
2012 | March 31 | June 30 | September 30 | December 31 | ||||||||||
Revenues | $ | 67,045 | $ | 30,384 | $ | 41,835 | $ | 57,053 | ||||||
Income (loss) from operations | 20,475 | (2,860 | ) | 2,096 | 7,069 | |||||||||
Net 1ncome (loss) | 12,384 | (1,974 | ) | 1,112 | 4,150 | |||||||||
Net income (loss) per share basic | 0.58 | (0.09 | ) | 0.05 | 0.19 | |||||||||
Net income (loss) per share diluted | 0.57 | (0.09 | ) | 0.05 | 0.19 | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of TGC Industries, Inc. and its wholly-owned subsidiary, Eagle Canada, Inc. We have eliminated all significant intercompany accounts and transactions. | |
Business Combinations | ' |
Business Combinations | |
We record acquisitions using the purchase method of accounting and, accordingly, have included the results of operations of acquired businesses in our consolidated results from the date of each acquisition. We allocate the purchase price of our acquisitions to the tangible assets, liabilities, and intangible assets acquired based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The fair value assigned to assets acquired is based on valuations provided by independent consultants and using management’s estimates and assumptions. | |
Foreign Currency | ' |
Foreign Currency | |
The functional currency of the Company’s international subsidiary is the local currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. The resulting translation adjustments are recorded directly into a separate component of stockholders’ equity and represents the only component of accumulated other comprehensive income (loss). | |
Cash Equivalents | ' |
Cash Equivalents | |
The Company considers all highly liquid investments with original maturity dates of three months or less to be cash equivalents. The Company maintains its accounts at financial institutions located in Texas and Alberta, Canada. The Texas bank accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Alberta bank accounts are insured by the Canadian Depository Insurance Corporation up to $100,000 Canadian. | |
Trade Accounts Receivable | ' |
Trade Accounts Receivable | |
Trade accounts receivable are recorded in accordance with terms and amounts as specified in the related contracts on an ongoing basis. The Company evaluates the collectability of accounts receivable on a specific account basis using a combination of factors including the age of the outstanding balances, evaluation of the customer’s financial condition, and discussions with relevant Company personnel and with the customers directly. An allowance for doubtful accounts or direct write-off is recorded when it is determined that the receivable may not be collected, depending on the facts known and the probability of collection of the outstanding amount. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the individual assets ranging from 1 to 7 years. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted cash flows estimated to be generated by those assets. No impairment charge was necessary at December 31, 2013, 2012, and 2011. | |
Income Taxes | ' |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, in accordance with ASC Topic 740 (“Topic 740”). Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The components of the deferred tax assets and liabilities are individually classified as current or non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In accordance with Topic 740, the Company recognizes in its financial statements the impact of a tax position if that position is “more likely than not” to be sustained on audit, based on the technical merits of the position. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. Interest and penalties related to unrecognized tax benefits, if any, are recorded as income tax expense. See Note H for further information. | |
Revenue Recognition | ' |
Revenue Recognition | |
Seismic Surveys | |
The Company provides seismic data acquisition survey services to its customers under general service agreements which define certain obligations for the Company and for its customers. We typically enter into a supplemental agreement setting forth the terms of each project, which may be cancelled by either party upon 30 days’ advance written notice. These supplemental agreements are either “turnkey” agreements providing for a fixed fee to be paid for each unit of seismic data acquired or “term” agreements providing for a fixed hourly, daily, or monthly fee during the term of the project. Under both types of agreements, the Company recognizes revenues when services have been performed and revenue is realizable. Services are defined as the commencement of data acquisition. Revenues are deemed realizable when earned according to the terms of the contracts. Under turnkey agreements, the total number of units of seismic data to be gathered is set forth in the agreement. Revenue under turnkey agreements is recognized on a per unit of seismic data acquired rate as services are performed. Revenue under term agreements is recognized on a per unit of time worked rate as services are performed based on the time worked rate provided in the term agreement. In the event of a cancelled contract, revenue is recognized and the client is billed for services performed to the date of contract cancellation. When it becomes evident that the estimates of total costs to be incurred on a contract will exceed the total estimates of revenue to be earned, an estimated loss is recognized in the period in which the loss is identifiable. The asset “Cost and estimated earnings in excess of billings on uncompleted contracts” represents cost incurred on turnkey agreements in excess of billings on those agreements. The liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings on turnkey agreements in excess of cost on those agreements. | |
Accumulated Other Comprehensive Income | ' |
Accumulated Other Comprehensive Income | |
Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss. Other comprehensive income or loss results from items deferred from recognition in the statement of earnings, which consists solely of foreign currency translation adjustments. Accumulated other comprehensive income (loss) is presented on the Company’s consolidated balance sheet as a part of stockholder’s equity. In addition, the Company reports comprehensive income and its components in a separate statement of comprehensive income. | |
Foreign currency translation income or loss represents changes in foreign currency rates used to translate the assets, liabilities, revenues and expenses of the Company’s international subsidiary from the local currency. These changes in foreign currency rates may never be realized or may only be partially realized upon the ultimate disposition, if any, of the international subsidiary. The Company’s foreign investment is considered permanent in nature as there are no plans in the foreseeable future for divestiture. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 presentation. | |
Share-Based Compensation | ' |
Share-Based Compensation | |
The Company has two stock-based compensation plans, which are described more fully in Note G. The Company recognizes the fair value of the share-based compensation awards as wages in the Statements of Operations on a straight-line basis over the vesting period. As a result, during the years ended December 31, 2013, 2012, and 2011, the Company recognized compensation expense for unvested stock options of $206,952, $283,950, and $230,167, respectively, and unvested restricted stock of $492,692, $317,109, and $28,603, respectively. | |
No incentive stock options were granted during the years ended December 31, 2013 and 2012. For the year ended December 31, 2011, the fair value of the single option grant was estimated on the date of the grant using the Binomial Lattice option pricing model with the following assumptions used for the outstanding grants: risk-free interest rate of 0.40%; expected dividend yield of 0.0%; expected life of 5.0 years; and expected volatility of 61.0%. | |
Financial Instruments | ' |
Financial Instruments | |
The Company’s financial instruments recorded on the consolidated balance sheet include cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of the short-term nature of these items. The carrying amounts of debt obligations approximate fair value due to their relative short-term maturities and their contract rates which approximate market. | |
Earnings Per Share | ' |
Earnings Per Share | |
Basic earnings per common share are based upon the weighted average number of shares of common stock outstanding. Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities. | |
All share and per share amounts for the years ended December 31, 2013, 2012 and 2011, have been adjusted to reflect 5% stock dividends paid May 14, 2013 and May 14, 2012 to shareholders of record as of April 30, 2013, and April 30, 2012, respectively. No stock dividends were declared or paid during the year ended December 31, 2011. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. | |
Recent Accounting Standards | ' |
Recent Accounting Standards | |
In July of 2012, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2012-02, Intangibles-Goodwill and Other (Topic 350) — Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”). This ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under accounting principles generally accepted in the United States (“U.S. GAAP”). The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this update in the first quarter of 2013, and it did not have a significant effect on its consolidated financial statements and related disclosures. | |
In July of 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). This ASU clarifies the balance sheet presentation of an unrecognized tax benefit and was issued to resolve the diversity in practice that had developed in the absence any specific U.S. GAAP. ASU 2013-11 is applicable to all entities that have an unrecognized tax benefit due to a net operating loss carryforward, a similar tax loss, of a tax credit carryforward. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and does not create any new disclosure requirements. The Company will adopt ASU 2013-11 on January 1, 2014. The Company anticipates that the adoption of ASU 2013-11 will not have a significant effect on its consolidated financial statements. |
COSTS_BILLINGS_AND_ESTIMATED_E1
COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | ' | |||||||
Schedule of components of uncompleted contracts | ' | |||||||
The components of uncompleted contracts are as follows at December 31: | ||||||||
2013 | 2012 | |||||||
Costs incurred on uncompleted contracts and estimated earnings | $ | 2,476,716 | $ | 11,299,753 | ||||
Less billings to date | (816,989 | ) | (8,793,159 | ) | ||||
$ | 1,659,727 | $ | 2,506,594 | |||||
Schedule of components of uncompleted contracts reflected in the consolidated balance sheets | ' | |||||||
The components of uncompleted contracts are reflected in the consolidated balance sheets as follows at December 31: | ||||||||
2013 | 2012 | |||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 2,312,947 | $ | 6,263,943 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (653,220 | ) | (3,757,349 | ) | ||||
$ | 1,659,727 | $ | 2,506,594 | |||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
Schedule Of accrued liabilities | ' | |||||||
Accrued liabilities consist of the following at December 31: | ||||||||
2013 | 2012 | |||||||
Compensation and payroll taxes | $ | 1,091,191 | $ | 2,004,444 | ||||
Accrued sales and use tax | 56,486 | 336,870 | ||||||
Insurance | 40,193 | 335,412 | ||||||
Accrued interest | 35,000 | 73,105 | ||||||
Other | 1,363,123 | 2,794,240 | ||||||
$ | 2,585,993 | $ | 5,544,071 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
DEBT | ' | |||||||
Schedule of components of notes payable | ' | |||||||
Notes payable consists of the following at December 31: | ||||||||
2013 | 2012 | |||||||
Notes payable to commercial banks | ||||||||
Four outstanding notes payable as of 12/31/2013 with interest between 3.50% and 4.60%, due in monthly installments between $128,363 and $215,863 plus interest; collateralized by equipment | $ | 14,416,225 | $ | 24,553,291 | ||||
Notes payable to finance companies for insurance | ||||||||
Two outstanding notes payable as of 12/31/2013 with interest between 4.00% and 4.95%, due in monthly installments between $18,831 and $329,823 including interest | 501,766 | 474,586 | ||||||
$ | 14,917,991 | $ | 25,027,877 | |||||
Less current maturities | (8,434,879 | ) | (10,615,279 | ) | ||||
$ | 6,483,112 | $ | 14,412,598 | |||||
Schedule of annual maturities of notes payable | ' | |||||||
Aggregate annual maturities of notes payable at December 31, 2013 are as follows: | ||||||||
Year Ending | ||||||||
December 31, | ||||||||
2014 | $ | 8,434,879 | ||||||
2015 | $ | 4,814,389 | ||||||
2016 | $ | 1,540,360 | ||||||
2017 | $ | 128,363 | ||||||
2018 | $ | — | ||||||
$ | 14,917,991 |
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES | ' | ||||
Schedule of future minimum lease payments under capital leases by years and the present value of the minimum lease payments | ' | ||||
The following is a schedule showing the future minimum lease payments under capital leases by years and the present value of the minimum lease payments as of December 31, 2013. | |||||
Year Ending | |||||
December 31, | |||||
2014 | $ | 1,523,229 | |||
2015 | 784,925 | ||||
2016 | 150,572 | ||||
2017 | — | ||||
Total minimum lease payments required | 2,458,726 | ||||
Less: Amount representing interest | (133,751 | ) | |||
Present value of minimum lease payments | 2,324,975 | ||||
Less current maturities | (1,423,268 | ) | |||
$ | 901,707 | ||||
Schedule by years of future minimum rental payments required under the operating leases | ' | ||||
The following is a schedule by years of future minimum rental payments required under the operating leases as of December 31, 2013: | |||||
2014 | $ | 642,340 | |||
2015 | 467,755 | ||||
2016 | 371,354 | ||||
2017 | 244,845 | ||||
2018 and thereafter | 104,934 | ||||
Total minimum payments required | $ | 1,831,228 | |||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||||
Schedule of reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Net income (loss) | $ | (6,316,041 | ) | $ | 15,671,879 | $ | 10,833,215 | ||||
Denominator: | |||||||||||
Basic - weighted average common shares outstanding | 21,841,582 | 21,513,638 | 21,215,800 | ||||||||
Effect of Dilutive Securities: | |||||||||||
Stock options | — | 384,738 | 332,601 | ||||||||
21,841,582 | 21,898,376 | 21,548,401 | |||||||||
Basic net income (loss) per share | $ | (0.29 | ) | $ | 0.73 | $ | 0.51 | ||||
Diluted net income (loss) per share | $ | (0.29 | ) | $ | 0.72 | $ | 0.5 | ||||
Summary of activity under the 2006 Plans | ' | ||||||||||
Weighted | |||||||||||
Shares under | Average | ||||||||||
Option | exercise price | ||||||||||
Balance at December 31, 2010 | 803,681 | $ | 3.63 | ||||||||
Granted | 109,347 | $ | 5.78 | ||||||||
Exercised | (59,334 | ) | $ | 3.06 | |||||||
Canceled | (21,000 | ) | $ | 4.1 | |||||||
Balance at December 31, 2011 | 832,694 | $ | 3.97 | ||||||||
Granted | 143,602 | $ | 6.86 | ||||||||
Exercised | (192,949 | ) | $ | 4.2 | |||||||
Canceled | (51,496 | ) | $ | 8.94 | |||||||
Balance at December 31, 2012 | 731,851 | $ | 4.16 | ||||||||
Granted | 117,611 | $ | 7.61 | ||||||||
Exercised | (328,403 | ) | $ | 2.97 | |||||||
Canceled | (63,330 | ) | $ | 6.61 | |||||||
Balance at December 31, 2013 | 457,729 | $ | 5.31 | ||||||||
Schedule of information that applies to options outstanding and exercisable | ' | ||||||||||
The following information applies to options outstanding and exercisable at December 31, 2013: | |||||||||||
Weighted | |||||||||||
average | |||||||||||
remaining | Weighted | ||||||||||
Range of | Number | contractual | average | ||||||||
Exercise prices | outstanding | life (in years) | exercise price | ||||||||
Outstanding options | $3.52 – $7.18 | 457,729 | 2.84 | $ | 5.31 | ||||||
Exercisable options | $3.52 – $7.18 | 402,724 | 2.58 | $ | 5.08 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of components of income tax provision (benefit) charged to continuing operations | ' | ||||||||||
The income tax provision (benefit) charged to continuing operations for the years ended December 31, 2013, 2012, and 2011, was as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
U.S. federal | $ | — | $ | 3,947,400 | $ | 35,561 | |||||
Foreign | 949,207 | 5,313,874 | 3,343,374 | ||||||||
State and local | 205,997 | 264,269 | 698,362 | ||||||||
1,155,204 | 9,525,543 | 4,077,297 | |||||||||
Deferred expense (benefit) | (3,308,713 | ) | 359,535 | 2,469,953 | |||||||
$ | (2,153,509 | ) | $ | 9,885,078 | $ | 6,547,250 | |||||
Schedule of difference between income tax expense computed by applying the statutory tax rate to income (loss) before income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Computed “expected” tax expense | $ | (2,879,647 | ) | $ | 8,944,935 | $ | 5,909,358 | ||||
Increase (decrease) in income taxes resulting from: | |||||||||||
Change in effective rates used for deferred taxes | — | — | (503,693 | ) | |||||||
Nondeductible expenses and other | 590,180 | 768,652 | 534,742 | ||||||||
State and local taxes, net of federal benefit | 135,958 | 171,491 | 606,843 | ||||||||
$ | (2,153,509 | ) | $ | 9,885,078 | $ | 6,547,250 | |||||
Schedule of components of net deferred tax liabilities | ' | ||||||||||
Net deferred tax liabilities consist of the following components as of December 31, 2013 and 2012: | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets | |||||||||||
Foreign tax credits | $ | 244,898 | $ | 473,405 | |||||||
Net operating loss carry forwards | 61,139 | 462,548 | |||||||||
Other | 88,911 | 92,983 | |||||||||
Total deferred tax assets | 394,948 | 1,028,936 | |||||||||
Deferred tax liability | |||||||||||
Property, equipment, and intangible asset | (4,985,687 | ) | (8,646,047 | ) | |||||||
Net deferred tax liabilities | $ | (4,590,739 | ) | $ | (7,617,111 | ) | |||||
Schedule of classification of deferred tax items in accompanying balance sheet | ' | ||||||||||
The components giving rise to the net deferred tax items described above have been included in the accompanying balance sheets as of December 31, 2013 and 2012, as follows: | |||||||||||
2013 | 2012 | ||||||||||
Current assets | $ | — | $ | — | |||||||
Noncurrent (liabilities) | (4,590,739 | ) | (7,617,111 | ) | |||||||
$ | (4,590,739 | ) | $ | (7,617,111 | ) | ||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA - (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
QUARTERLY FINANCIAL DATA - (UNAUDITED) | ' | |||||||||||||
Summary of the unaudited quarterly financial information | ' | |||||||||||||
The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||||||
Three Months Ended | ||||||||||||||
2013 | March 31 | June 30 | September 30 | December 31 | ||||||||||
Revenues | $ | 63,204 | $ | 31,487 | $ | 21,115 | $ | 18,728 | ||||||
Income (loss) from operations | 10,905 | (5,620 | ) | (5,827 | ) | (6,836 | ) | |||||||
Net income (loss) | 6,351 | (4,004 | ) | (3,952 | ) | (4,712 | ) | |||||||
Net income (loss) per share basic | 0.29 | (0.18 | ) | (0.18 | ) | (0.21 | ) | |||||||
Net income (loss) per share diluted | 0.29 | (0.18 | ) | (0.18 | ) | (0.21 | ) | |||||||
Three Months Ended | ||||||||||||||
2012 | March 31 | June 30 | September 30 | December 31 | ||||||||||
Revenues | $ | 67,045 | $ | 30,384 | $ | 41,835 | $ | 57,053 | ||||||
Income (loss) from operations | 20,475 | (2,860 | ) | 2,096 | 7,069 | |||||||||
Net 1ncome (loss) | 12,384 | (1,974 | ) | 1,112 | 4,150 | |||||||||
Net income (loss) per share basic | 0.58 | (0.09 | ) | 0.05 | 0.19 | |||||||||
Net income (loss) per share diluted | 0.57 | (0.09 | ) | 0.05 | 0.19 | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CAD | Minimum | Maximum | |
Cash Equivalents | ' | ' | ' | ' |
Amount in the Texas Bank accounts insured by FDIC | $250,000 | ' | ' | ' |
Amount in the Alberta Bank accounts insured by CDIC | ' | 100,000 | ' | ' |
Property and equipment | ' | ' | ' | ' |
Estimated useful lives of property and equipment | ' | ' | '1 year | '7 years |
Revenue Recognition | ' | ' | ' | ' |
Minimum period of prior notice to cancel supplemental agreement | '30 days | '30 days | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | |||
14-May-13 | 14-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||||
Allocation of stock-based compensation cost | ' | ' | ' | ' | ' |
Number of stock-based compensation plans | ' | ' | 2 | ' | ' |
Fair value of option | ' | ' | ' | ' | ' |
Options granted | ' | ' | 117,611 | 143,602 | 109,347 |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | 0.40% |
Expected dividend yields (as a percent) | ' | ' | ' | ' | 0.00% |
Expected life of option | ' | ' | ' | ' | '5 years |
Expected volatility (as a percent) | ' | ' | ' | ' | 61.00% |
Earnings Per Share | ' | ' | ' | ' | ' |
Percentage of dividend paid on common stock | 5.00% | 5.00% | 5.00% | 5.00% | ' |
Unvested stock options | ' | ' | ' | ' | ' |
Allocation of stock-based compensation cost | ' | ' | ' | ' | ' |
Recognized stock-based compensation expense | ' | ' | 206,952 | 283,950 | 230,167 |
Fair value of option | ' | ' | ' | ' | ' |
Options granted | ' | ' | 0 | 0 | ' |
Restricted stock | ' | ' | ' | ' | ' |
Allocation of stock-based compensation cost | ' | ' | ' | ' | ' |
Recognized stock-based compensation expense | ' | ' | 492,692 | 317,109 | 28,603 |
COSTS_BILLINGS_AND_ESTIMATED_E2
COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Costs incurred on uncompleted contracts | ' | ' |
Costs incurred on uncompleted contracts and estimated earnings | $2,476,716 | $11,299,753 |
Less billings to date | -816,989 | -8,793,159 |
Unbilled contracts receivable | 1,659,727 | 2,506,594 |
Costs in excess of billings on uncompleted contracts | ' | ' |
Cost and estimated earnings in excess of billings on uncompleted contracts | 2,312,947 | 6,263,943 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -653,220 | -3,757,349 |
Unbilled contracts receivable | $1,659,727 | $2,506,594 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ACCRUED LIABILITIES | ' | ' |
Compensation and payroll taxes | $1,091,191 | $2,004,444 |
Accrued sales and use tax | 56,486 | 336,870 |
Insurance | 40,193 | 335,412 |
Accrued interest | 35,000 | 73,105 |
Other | 1,363,123 | 2,794,240 |
Total | $2,585,993 | $5,544,071 |
DEBT_Details
DEBT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Debt Instruments | ' | ' |
Notes Payable | 14,917,991 | 25,027,877 |
Less current maturities | -8,434,879 | -10,615,279 |
Notes payable, Noncurrent | 6,483,112 | 14,412,598 |
Annual maturities of notes payable | ' | ' |
2014 | 8,434,879 | ' |
2015 | 4,814,389 | ' |
2016 | 1,540,360 | ' |
2017 | 128,363 | ' |
Total | 14,917,991 | 25,027,877 |
Revolving credit facility | ' | ' |
Debt Instruments | ' | ' |
Maximum borrowing capacity | 5,000,000 | ' |
Line of credit facility, base rate | 'prime rate | ' |
Debt instrument stated rate (as a percent) | 5.00% | ' |
Borrowings outstanding | 0 | ' |
Notes payable to commercial banks | ' | ' |
Debt Instruments | ' | ' |
Notes Payable | 14,416,225 | 24,553,291 |
Annual maturities of notes payable | ' | ' |
Total | 14,416,225 | 24,553,291 |
Notes payable with interest rate between 3.50% and 4.60% | ' | ' |
Debt Instruments | ' | ' |
Number of notes payable | 4 | 4 |
Minimum interest rate (as a percent) | 3.50% | 3.50% |
Maximum interest rate (as a percent) | 4.60% | 4.60% |
Notes payable with interest rate between 3.50% and 4.60% | Minimum | ' | ' |
Debt Instruments | ' | ' |
Monthly principal installments | 128,363 | 128,363 |
Notes payable with interest rate between 3.50% and 4.60% | Maximum | ' | ' |
Debt Instruments | ' | ' |
Monthly principal installments | 215,863 | 215,863 |
Notes Payable to finance companies for insurance notes | ' | ' |
Debt Instruments | ' | ' |
Notes Payable | 501,766 | 474,586 |
Annual maturities of notes payable | ' | ' |
Total | 501,766 | 474,586 |
Notes payable with interest rate between 4.00% and 4.95% | ' | ' |
Debt Instruments | ' | ' |
Number of notes payable | 2 | 2 |
Minimum interest rate (as a percent) | 4.00% | 4.00% |
Maximum interest rate (as a percent) | 4.95% | 4.95% |
Notes payable with interest rate between 4.00% and 4.95% | Minimum | ' | ' |
Debt Instruments | ' | ' |
Monthly principal installments | 18,831 | 18,831 |
Notes payable with interest rate between 4.00% and 4.95% | Maximum | ' | ' |
Debt Instruments | ' | ' |
Monthly principal installments | 329,823 | 329,823 |
LEASES_Details
LEASES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Minimum | Maximum | |||
Capital Lease Obligations | ' | ' | ' | ' |
2014 | $1,523,229 | ' | ' | ' |
2015 | 784,925 | ' | ' | ' |
2016 | 150,572 | ' | ' | ' |
Total minimum lease payments required | 2,458,726 | ' | ' | ' |
Less: Amount representing interest | -133,751 | ' | ' | ' |
Present value of minimum lease payments | 2,324,975 | ' | ' | ' |
Less current maturities | -1,423,268 | -1,960,503 | ' | ' |
Capital lease obligations, noncurrent | 901,707 | 1,884,937 | ' | ' |
Capital Lease Obligations | ' | ' | ' | ' |
Net book value of capital assets leased | 2,954,000 | 4,957,000 | ' | ' |
Total accumulated depreciation | $7,221,000 | $5,114,000 | ' | ' |
Interest rate (as a percent) | ' | ' | 4.58% | 8.17% |
LEASES_Details_2
LEASES (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Operating Lease Obligations | ' | ' | ' |
Number of operating lease that expire on a month to month basis | 1 | ' | ' |
Rent expense | $750,000 | $700,000 | $605,000 |
Schedule of future minimum rental payments | ' | ' | ' |
2014 | 642,340 | ' | ' |
2015 | 467,755 | ' | ' |
2016 | 371,354 | ' | ' |
2017 | 244,845 | ' | ' |
2018 and thereafter | 104,934 | ' | ' |
Total minimum payments required | $1,831,228 | ' | ' |
Offices | ' | ' | ' |
Operating Lease Obligations | ' | ' | ' |
Number of leased properties | 5 | ' | ' |
Offices | Texas | ' | ' | ' |
Operating Lease Obligations | ' | ' | ' |
Number of leased properties | 1 | ' | ' |
Offices | Alberta | ' | ' | ' |
Operating Lease Obligations | ' | ' | ' |
Number of leased properties | 1 | ' | ' |
Offices | Texas and Oklahoma | ' | ' | ' |
Operating Lease Obligations | ' | ' | ' |
Number of leased properties | 2 | ' | ' |
Warehouse facilities | ' | ' | ' |
Operating Lease Obligations | ' | ' | ' |
Number of leased properties | 2 | ' | ' |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
14-May-13 | 14-May-12 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (loss) | ' | ' | ($4,712,000) | ($3,952,000) | ($4,004,000) | $6,351,000 | $4,150,000 | $1,112,000 | ($1,974,000) | $12,384,000 | ($6,316,041) | $15,671,879 | $10,833,215 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic - weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,841,582 | 21,513,638 | 21,215,800 |
Effect of Dilutive Securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 384,738 | 332,601 |
Diluted - weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,841,582 | 21,898,376 | 21,548,401 |
Basic EPS (in dollars per share) | ' | ' | ($0.21) | ($0.18) | ($0.18) | $0.29 | $0.19 | $0.05 | ($0.09) | $0.58 | ($0.29) | $0.73 | $0.51 |
Diluted EPS (in dollars per share) | ' | ' | ($0.21) | ($0.18) | ($0.18) | $0.29 | $0.19 | $0.05 | ($0.09) | $0.57 | ($0.29) | $0.72 | $0.50 |
Other disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding options that were not included in the diluted calculation because their effect would be anti-dilutive (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,373 | 44,370 | ' |
Percentage of dividend paid on common stock | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' |
SHAREHOLDERS_EQUITY_Details_2
SHAREHOLDERS' EQUITY (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 11, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 25, 2013 | Feb. 01, 2013 | Aug. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock option | Stock option | Stock option | Restricted stock | Restricted stock | Restricted stock | Restricted stock | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | ||||
item | Stock option | Stock option | Stock option | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | ||||||||||||
Share-Based Compensation Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of shares of common stock under the 2006 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of directors in the committee for the 2006 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option expiration term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | 117,611 | 143,602 | 109,347 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 117,611 | 143,602 | 109,347 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | 6,000 | 213,125 | 6,000 | 21,520 | 25,331 | ' | ' | ' |
Shares rescinded | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised or cancelled during the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 391,733 | 244,445 | 80,334 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | $206,952 | $283,950 | $230,167 | ' | $492,692 | $317,109 | $28,603 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $492,692 | $317,109 | $28,603 |
Unrecognized deferred stock-based compensation expenses | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Details_3
SHAREHOLDERS' EQUITY (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shares under Option | ' | ' | ' |
Balance at the beginning of the period (in shares) | 731,851 | 832,694 | 803,681 |
Granted (in shares) | 117,611 | 143,602 | 109,347 |
Exercised (in shares) | -328,403 | -192,949 | -59,334 |
Canceled (in shares) | -63,330 | -51,496 | -21,000 |
Balance at the end of the period (in shares) | 457,729 | 731,851 | 832,694 |
Weighted Average exercise price | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $4.16 | $3.97 | $3.63 |
Granted (in dollars per share) | $7.61 | $6.86 | $5.78 |
Exercised (in dollars per share) | $2.97 | $4.20 | $3.06 |
Canceled (in dollars per share) | $6.61 | $8.94 | $4.10 |
Balance at the end of the period (in dollars per share) | $5.31 | $4.16 | $3.97 |
SHAREHOLDERS_EQUITY_Details_4
SHAREHOLDERS' EQUITY (Details 4) (Range of Exercise prices, $3.52 - $7.18, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Range of Exercise prices, $3.52 - $7.18 | ' |
Shares authorized under the stock option plans, exercise price range | ' |
Exercise price, low end of range (in dollars per share) | $3.52 |
Exercise price, high end of range (in dollars per share) | $7.18 |
Number of outstanding options (in shares) | 457,729 |
Weighted average remaining contractual life of outstanding options | '2 years 10 months 2 days |
Weighted average exercise price of outstanding options (in dollars per share) | $5.31 |
Number of outstanding exercisable options (in shares) | 402,724 |
Weighted average remaining contractual life of exercisable options | '2 years 6 months 29 days |
Weighted average exercise price of exercisable options (in dollars per share) | $5.08 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current: | ' | ' | ' |
U.S. federal | ' | $3,947,400 | $35,561 |
Foreign | 949,207 | 5,313,874 | 3,343,374 |
State and local | 205,997 | 264,269 | 698,362 |
Current income tax expense (benefit) | 1,155,204 | 9,525,543 | 4,077,297 |
Deferred expense (benefit) | -3,308,713 | 359,535 | 2,469,953 |
Income tax expense (benefit): | -2,153,509 | 9,885,078 | 6,547,250 |
Components of income before income tax attributable to Operations | ' | ' | ' |
Components of income (loss) before income tax attributable to domestic operations | -12,635,002 | 6,018,971 | 6,085,192 |
Components of income (loss) before income tax attributable to foreign operations | 4,165,452 | 19,537,986 | 11,295,273 |
Federal income tax rate (as a percent) | 34.00% | 35.00% | 34.00% |
Reconciliation of income tax expense (provision) | ' | ' | ' |
Computed expected tax expense | -2,879,647 | 8,944,935 | 5,909,358 |
Increase (decrease) in income taxes resulting from: | ' | ' | ' |
Change in effective rates used for deferred taxes | ' | ' | -503,693 |
Nondeductible expenses and other | 590,180 | 768,652 | 534,742 |
State and local taxes, net of federal benefit | 135,958 | 171,491 | 606,843 |
Income tax expense (benefit): | -2,153,509 | 9,885,078 | 6,547,250 |
Deferred tax assets | ' | ' | ' |
Foreign tax credits | 244,898 | 473,405 | ' |
Net operating loss carry forwards | 61,139 | 462,548 | ' |
Other | 88,911 | 92,983 | ' |
Total deferred tax assets | 394,948 | 1,028,936 | ' |
Deferred tax liability | ' | ' | ' |
Property, equipment, and intangible asset | -4,985,687 | -8,646,047 | ' |
Total | -4,590,739 | -7,617,111 | ' |
Classification of net deferred tax components | ' | ' | ' |
Noncurrent (liabilities) | -4,590,739 | -7,617,111 | ' |
Total | -4,590,739 | -7,617,111 | ' |
Net operating loss carry forwards for U.S. federal income tax purposes | 180,000 | ' | ' |
Unrecognized tax benefits | $0 | $0 | ' |
401k_PLAN_Details
401(k) PLAN (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
401(k) PLAN | ' | ' | ' |
Eligible age of employees to participate in the contribution plan | '21 years | ' | ' |
Required service period to participate in the contribution plan | '1 year | ' | ' |
Employer matching contribution of the first 6% of participant's contribution (as a percent) | 50.00% | ' | ' |
Percentage of participant's contribution matched by 50% of employer contribution | 6.00% | ' | ' |
Matching contribution to the plan | $158,000 | $113,000 | $98,000 |
CONCENTRATION_OF_CREDIT_RISK_D
CONCENTRATION OF CREDIT RISK (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues | Largest customer | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Concentration risk percentage | 12.00% | 16.00% | 17.00% |
Accounts receivable | Customer concentration risk | Two customers | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Number of customers | ' | 2 | 2 |
Accounts receivable | Customer concentration risk | Customer One | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Concentration risk percentage | 27.00% | 29.00% | 13.00% |
Accounts receivable | Customer concentration risk | Customer Two | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Concentration risk percentage | 16.00% | 23.00% | 12.00% |
Accounts receivable | Customer concentration risk | Three customers | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Number of customers | 3 | ' | ' |
Accounts receivable | Customer concentration risk | Customer Three | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Concentration risk percentage | 15.00% | ' | ' |
Purchases | Vendor concentration risk | ' | ' | ' |
CONCENTRATION OF CREDIT RISK | ' | ' | ' |
Concentration risk percentage | ' | 12.00% | ' |
Number of vendors | ' | 1 | ' |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA - (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
QUARTERLY FINANCIAL DATA - (UNAUDITED) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $18,728,000 | $21,115,000 | $31,487,000 | $63,204,000 | $57,053,000 | $41,835,000 | $30,384,000 | $67,045,000 | $134,534,540 | $196,317,215 | $151,028,582 |
Income (loss) from operations | -6,836,000 | -5,827,000 | -5,620,000 | 10,905,000 | 7,069,000 | 2,096,000 | -2,860,000 | 20,475,000 | -7,378,074 | 26,779,411 | 18,164,890 |
Net income (loss) | ($4,712,000) | ($3,952,000) | ($4,004,000) | $6,351,000 | $4,150,000 | $1,112,000 | ($1,974,000) | $12,384,000 | ($6,316,041) | $15,671,879 | $10,833,215 |
Net income (loss) per share basic | ($0.21) | ($0.18) | ($0.18) | $0.29 | $0.19 | $0.05 | ($0.09) | $0.58 | ($0.29) | $0.73 | $0.51 |
Net income (loss) per share diluted | ($0.21) | ($0.18) | ($0.18) | $0.29 | $0.19 | $0.05 | ($0.09) | $0.57 | ($0.29) | $0.72 | $0.50 |