Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | DAWSON GEOPHYSICAL CO | |
Entity Central Index Key | 799,165 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,803,753 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 17,608 | $ 22,013 |
Short-term investments | 17,583 | 16,583 |
Accounts receivable, net | 41,215 | 33,156 |
Current maturities of notes receivable | 50 | 695 |
Prepaid expenses and other current assets | 9,396 | 7,340 |
Total current assets | 85,852 | 79,787 |
Property and equipment, net | 82,056 | 86,573 |
Notes receivable, net of current maturities | 1,486 | 841 |
Intangibles, net | 461 | 494 |
Long-term deferred tax assets, net | 224 | 224 |
Total assets | 170,079 | 167,919 |
Current liabilities: | ||
Accounts payable | 9,057 | 5,933 |
Accrued liabilities: | ||
Payroll costs and other taxes | 3,093 | 1,151 |
Other | 4,175 | 4,314 |
Deferred revenue | 5,833 | 6,314 |
Current maturities of notes payable and obligations under capital leases | 3,017 | 2,712 |
Total current liabilities | 25,175 | 20,424 |
Long-term liabilities: | ||
Notes payable and obligations under capital leases, net of current maturities | 4,446 | 5,153 |
Deferred tax liabilities, net | 816 | 874 |
Other accrued liabilities | 150 | 150 |
Total long-term liabilities | 5,412 | 6,177 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding | ||
Common stock-par value $0.01 per share; 35,000,000 shares authorized, 22,942,836 and 22,926,026 shares issued, and 22,893,941 and 22,877,581 shares outstanding at March 31, 2018 and December 31, 2017, respectively | 229 | 229 |
Additional paid-in capital | 152,093 | 151,881 |
Retained deficit | (11,678) | (10,012) |
Treasury stock, at cost; 48,445 shares at March 31, 2018 and December 31, 2017 | ||
Accumulated other comprehensive loss, net | (1,152) | (780) |
Total stockholders' equity | 139,492 | 141,318 |
Total liabilities and stockholders' equity | $ 170,079 | $ 167,919 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
CONDENSED 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 outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 22,942,386 | 22,926,026 |
Common stock, shares outstanding | 22,893,941 | 22,877,581 |
Treasury stock, shares | 48,445 | 48,445 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||
Operating revenues | $ 49,880 | $ 42,366 |
Operating costs: | ||
Operating expenses | 38,759 | 39,974 |
General and administrative | 4,083 | 4,355 |
Depreciation and amortization | 8,678 | 10,176 |
Operating expenses, total | 51,520 | 54,505 |
Loss from operations | (1,640) | (12,139) |
Other (expense) income: | ||
Interest income | 37 | 80 |
Interest expense | (88) | (22) |
Other (expense) income | (49) | 106 |
Loss before income tax | (1,740) | (11,975) |
Income tax benefit | 31 | 2,823 |
Net loss | (1,709) | (9,152) |
Other comprehensive (loss) income: | ||
Net unrealized (loss) income on foreign exchange rate translation, net | (329) | 97 |
Comprehensive loss | $ (2,038) | $ (9,055) |
Basic loss per share of common stock | $ (0.07) | $ (0.40) |
Diluted loss per share of common stock | $ (0.07) | $ (0.40) |
Weighted average equivalent common shares outstanding | 22,879,805 | 22,742,516 |
Weighted average equivalent common shares outstanding - assuming dilution | 22,879,805 | 22,742,516 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (1,709) | $ (9,152) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,678 | 10,176 |
Noncash compensation | 235 | 258 |
Deferred income tax benefit | (33) | (16) |
Change in other accrued long-term liabilities | (1,465) | |
Loss (gain) on disposal of assets | 10 | (1,108) |
Other | 174 | 33 |
Change in current assets and liabilities: | ||
Increase in accounts receivable | (9,036) | (8,102) |
Increase in prepaid expenses and other current assets | (1,755) | (47) |
Increase in accounts payable | 2,845 | 1,424 |
Increase in accrued liabilities | 1,826 | 2,381 |
Decrease in deferred revenue | (481) | (1,131) |
Net cash provided by (used in) operating activities | 754 | (6,749) |
Cash flows from investing activities: | ||
Capital expenditures, net of noncash capital expenditures summarized below | (4,120) | (3,401) |
Proceeds from maturity of short-term investments | 11,000 | 26,250 |
Acquisition of short-term investments | (12,000) | (2,000) |
Proceeds from disposal of assets | 57 | 240 |
Proceeds from flood insurance claims | 687 | |
Net cash (used in) provided by investing activities | (4,376) | 21,089 |
Cash flows from financing activities: | ||
Principal payments on notes payable | (27) | (949) |
Principal payments on capital lease obligations | (663) | (152) |
Tax withholdings related to stock-based compensation awards | (23) | (49) |
Net cash used in financing activities | (713) | (1,150) |
Effect of exchange rate changes on cash and cash equivalents | (70) | 6 |
Net (decrease) increase in cash and cash equivalents | (4,405) | 13,196 |
Cash and cash equivalents at beginning of period | 22,013 | 14,624 |
Cash and cash equivalents at end of period | 17,608 | 27,820 |
Supplemental cash flow information: | ||
Cash paid for interest | 74 | 22 |
Cash received for income taxes | 1,356 | |
Noncash investing and financing activities: | ||
Increase in accrued purchases of property and equipment | 315 | 566 |
Financed insurance premiums | $ 304 | 248 |
Equipment sales financed for buyer | (1,500) | |
Sales tax on equipment sales financed for buyer | $ (132) |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2018 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS Dawson Geophysical Company (the “Company”) is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States (“U.S.”) and Canada. The Company acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the U.S. for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the U.S. have been omitted. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) as discussed below. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standard, as indicated by “as adjusted”. Significant Accounting Policies Principles of Consolidation. The condensed consolidated financial statements for the three months ended March 31, 2018 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Eagle Canada, Inc., Dawson Seismic Services Holdings, Inc., Eagle Canada Seismic Services ULC, and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Notes Receivable. The Company’s notes receivable consist of one note receivable from the purchaser of certain dynamite energy source drilling equipment. This note receivable is stated at the unpaid principal balance. An allowance for note losses was not deemed necessary at March 31, 2018. Interest is recognized over the term of the note and is calculated using the simple-interest method. Amounts payable to the Company under the note receivable are fully collateralized by the specific dynamite energy source drilling equipment sold to the note payor. Allowance for Doubtful Accounts. Management prepares its allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs and its current client base. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. The Company’s allowance for doubtful accounts was $250,000 at March 31, 2018 and December 31, 2017. Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period. Impairment of Long-lived Assets . Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value. Stock-Based Compensation . The Company measures all stock-based compensation awards, which include stock options, restricted stock, restricted stock units and common stock awards, using the fair value method and recognizes compensation expense as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP 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. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates. Revenue Recognition . Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is recognized based on square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated revenue for the service contract. In the case of a cancelled service contract, the client is billed and revenue is recognized for any third party charges and square miles of data recorded up to the date of cancellation. The Company receives reimbursements for certain out-of-pocket expenses under the terms of the service contracts. The amounts billed to clients are included at their gross amount in the total estimated revenue for the service contract. Clients are billed as permitted by the service contract. Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. If billing occurs prior to the revenue recognition or billing exceeds the revenue recognized, the amount is considered deferred revenue and a contract liability. Conversely, if the revenue recognition exceeds the billing, the exceeded amount is considered unbilled receivable and a contract asset. As services are performed, those deferred revenue amounts are recognized as revenue. In some instances, third-party permitting, surveying, drilling, helicopter, equipment rental and mobilization costs that directly relate to the contract are utilized to fulfill the contract obligations. These fulfillment costs are capitalized in other current assets and amortized based on the total square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated fulfillment costs for the service contract. Estimates for total revenue and total fulfillment cost on any service contract are based on significant qualitative and quantitative judgments. Management considers a variety of factors such as whether various components of the performance obligation will be performed internally or externally, cost of third party services, and facts and circumstances unique to the performance obligation in making these estimates. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Topic 606 related to revenue recognition in which an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 effective January 1, 2018, using the full retrospective method, which required us to adjust our condensed consolidated financial statements from amounts previously reported for each prior reporting period presented. This included the recognition of additional revenue and expense deferred from 2016 into the first quarter of 2017 as we had not yet recorded data, but without a change in income tax as the Company was in a full valuation allowance. In addition, adoption of the standard resulted in an increase in accounts receivable, other current assets and deferred revenue due to the recognition in the first quarter of 2017 of deferrals from 2016. The Company recognized the cumulative effect of adopting the guidance as an adjustment to our opening balance of retained earnings as of January 1, 2016. The Company elected several practical expedients including (i) to ignore the financing component when estimating the transaction price for service contracts completed within one year, (ii) to exclude sales tax collected from the customer when determining the transaction price, (iii) to not restate contracts that begin and end within the same annual reporting period, (iv) to use the transaction price at the completion of the contract to retrospectively apply the new guidance, and (v) to not disclose the remaining performance obligations for the reporting periods presented before the date of initial application. Adjustments to Condensed Consolidated Financial Statements related to Topic 606 are shown in Note 4 - Supplemental Consolidated Financial Statement Information. Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act passed by the U.S. federal government in December 2017 . The Company adopted ASU 2018-02 in the first quarter of 2018 and recorded an adjustment to Stockholders’ Equity within the Condensed Consolidated Balance Sheets that did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting . The Company adopted this guidance in the first quarter of 2018, and it did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323), which stated additional qualitative disclosures should be considered to assess the significance of the impact upon adoption. This ASU is effective for the annual period beginning after December 15, 2018, and for annual and interim periods thereafter. Early adoption is permitted. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. The Company is currently evaluating the new guidance and practical expedients to determine the impact they will have on the Company’s condensed consolidated financial statements. The Company believes that the most significant change will be to the Condensed Consolidated Balance Sheets as the Company’s asset and liability balances will increase for operating leases that are currently off-balance sheet. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3. FAIR VALUE OF FINANCIAL INSTRUMENTS At March 31, 2018 and December 31, 2017, the Company’s financial instruments included cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, notes receivable, other current assets, accounts payable, other current liabilities and notes payable. Due to the short-term maturities of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities, the carrying amounts approximate fair value at the respective balance sheet dates. The carrying value of the notes receivable and notes payable approximate their fair value based on a comparison with the prevailing market interest rate. Due to the short-term maturities of the Company’s investments in certificates of deposit, the carrying amounts approximate fair value at the respective balance sheet dates. The fair values of the Company’s notes receivable, notes payable and investments in certificates of deposit are level 2 measurements in the fair value hierarchy . |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | |
SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION | 4. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION Except for the items mentioned below, no other balance sheet opening balances were materially impacted at January 1, 2017 for the adoption of Topic 606. Deferred Costs The Company’s prepaid expenses and other assets at March 31, 2018 and 2017 included deferred costs (in thousands) incurred to fulfill contracts with customers of $4,688 and $3,180, respectively. The amount of total deferred costs amortized (in thousands) during the three months ended March 31, 2018 and 2017 was $6,999 and $13,015, respectively. There were no material impairment losses incurred during these periods. The opening balance of deferred cost (in thousands) was $2,991 and $3,668 at January 1, 2018 and 2017, respectively. Deferred Revenue The Company recognized revenue (in thousands) of $3,683 and $4,655 during the three months ended March 31, 2018 and 2017, respectively, that was included in deferred revenue balances at the beginning of the respective periods . The opening balance of deferred revenue (in thousands) was $6,314 and $5,385 at January 1, 2018 and 2017, respectively. Adjustments to Condensed Consolidated Financial Statements The following tables reflect the adjustments applied to our condensed consolidated financial statements related to both the adoption of Topic 606 and the 5% stock dividend discussed in Note 9. Select line items from the Company’s Condensed Consolidated Balance Sheets which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands): December 31, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Current assets: Accounts receivable, net $ $ $ Prepaid expenses and other current assets $ $ $ Current liabilities: Deferred revenue $ $ $ Stockholders' equity: Common Stock $ $ $ Additional paid-in capital $ $ $ Retained deficit $ $ $ $ Select line items from the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands except share and per share data): Three Months Ended March 31, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Operating revenues $ $ $ Operating costs: Operating expenses $ $ $ Loss from operations $ $ $ Net loss $ $ $ Basic and diluted loss per share of common stock $ (0.42) $ — $ 0.02 $ (0.40) Weighted average equivalent common shares outstanding and outstanding - assuming dilution 21,659,539 1,082,977 22,742,516 Select line items from the Company’s Condensed Consolidated Statements of Cash Flows which reflect the adoption of the new standard are as follows (in thousands): Three Months Ended March 31, 2017 As Previously Reported Topic 606 Adjustments As Adjusted Cash flows from operating activities: Net loss $ $ $ Change in current assets and liabilities: Increase in accounts receivable $ $ $ Increase in prepaid expenses and other current assets $ $ $ Increase in accounts payable $ $ $ Decrease in deferred revenue $ $ $ Net cash used in operating activities $ $ — $ |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2018 | |
DEBT | |
DEBT | 5. DEBT Credit Agreement The Company’s existing amended and restated credit agreement (the “Credit Agreement”) with Veritex Bank includes term loan and revolving loan features, and also allows for the issuance of letters of credit and other promissory notes. The Company can borrow up to a maximum of $20.0 million pursuant to the Credit Agreement, subject to the terms and limitations discussed below. The Credit Agreement provides for a revolving loan feature (the “Line of Credit”) that permits the Company to borrow, repay and re-borrow, from time to time until June 30, 2018, up to the lesser of (i) $20.0 million or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable (less the outstanding principal balance of term loans and letters of credit under the Credit Agreement) and (b) the lesser of (i) 50% of the value of certain of the Company’s core equipment or (ii) $12,500,000. The Company has not utilized the Line of Credit since its inception. Because the Company’s ability to borrow funds under the Line of Credit is tied to the amount of the Company’s eligible accounts receivable and value of certain of its core equipment, if the Company’s accounts receivable decrease materially for any reason, including delays, reductions or cancellations by clients, or decreased demand for the Company’s services, or the value of the Company’s pledged core equipment decreases materially, the Company’s borrowing ability to fund operations or other obligations may be reduced. The Credit Agreement also provides for a term loan feature. Any notes outstanding under this feature would count toward the maximum amounts the Company may borrow under the Credit Agreement. The Company does not currently have any notes payable under the Credit Agreement or the term loan feature of the Credit Agreement. The Company’s obligations under the Line of Credit are secured by a security interest in the Company’s accounts receivable and certain of the Company’s core equipment, and the term loans are also secured by certain of the Company’s core equipment. Interest on amounts outstanding under the Credit Agreement accrues at the lesser of 4.5% or the prime rate (as quoted in the Wall Street Journal ), subject to an interest rate floor of 2.5%. The Credit Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets, mergers and other fundamental changes. The Company is also obligated to meet certain financial covenants, including (i) a ratio of (x) total liabilities minus subordinated debt to (y) tangible net worth plus subordinated debt not to exceed 1.00:1.00, (ii) a ratio of current assets to current liabilities of at least 1.50:1.00 and (iii) required tangible net worth of not less than $125,000,000. The Company was in compliance with all covenants under the Credit Agreement, including specified ratios, as of March 31, 2018. Veritex Bank has also issued three letters of credit as of March 31, 2018. The first letter of credit is in the amount of $1,767,000 to support payment of certain insurance obligations of the Company. The principal amount of this letter of credit is collateralized by certain of the Company’s core equipment. The second letter of credit is in the amount of $583,000 to support the company’s workers compensation insurance and is secured by a certificate of deposit. The third letter of credit is unsecured and in the amount of $75,000 to support certain performance obligations of the Company. None of the letters of credit counts as funds borrowed under the Company’s Line of Credit. Other Indebtedness The Company has one outstanding note, in the remaining principal amount of $277,000 at March 31, 2018 payable to a finance company for insurance. In addition, the Company enters into capital lease obligations for certain vehicles and recording equipment. The Company’s Condensed Consolidated Balance Sheets as of March 31, 2018 include capital lease obligations of $7,186,000 . Maturities and Interest Rates of Debt The following table sets forth the aggregate principal amount (in thousands) under the Company’s outstanding notes payable and the interest rates as of March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Notes payable to finance company for insurance Aggregate principal amount outstanding $ $ — Interest rates — The aggregate maturities of the notes payable at March 31, 2018 are as follows (in thousands): January 2018 - December 2018 $ The aggregate maturities of obligations under capital leases at March 31, 2018 are as follows (in thousands): April 2018 - March 2019 $ April 2019 - March 2020 April 2020 - March 2021 April 2021 - March 2022 Obligations under capital leases $ Interest rates on these leases range from 4.65% to 4.93%. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. Although the Company cannot predict the outcomes of any such legal proceedings, management believes that the resolution of pending legal actions will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity, as the Company believes it is adequately indemnified and insured. The Company experiences contractual disputes with its clients from time to time regarding the payment of invoices or other matters. While the Company seeks to minimize these disputes and maintain good relations with its clients, the Company has experienced in the past, and may experience in the future, disputes that could affect its revenues and results of operations in any period. The Company has non-cancelable operating leases for office and shop space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
NET LOSS PER SHARE | |
NET LOSS PER SHARE | 7. NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss by the weighted average shares outstanding. Diluted loss per share is computed by dividing the net loss by the weighted average diluted shares outstanding. All share and per share amounts listed on the table below have been adjusted to reflect the 5% stock dividend discussed in Note 9. The computation of basic and diluted loss per share is as follows (in thousands, except share and per share data) : Three Months Ended March 31, 2018 2017 (as adjusted) Net loss $ (1,709) $ (9,152) Weighted average common shares outstanding: Basic 22,879,805 22,742,516 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — Diluted 22,879,805 22,742,516 Basic loss per share of common stock $ (0.07) $ (0.40) Diluted loss per share of common stock $ (0.07) $ (0.40) The Company had a net loss in the three months ended March 31, 2018 and 2017. As a result, all stock options, restricted stock unit awards, and restricted stock awards were anti-dilutive and excluded from weighted average shares used in determining the diluted loss per share of common stock for the respective periods. The following weighted average numbers of stock options, restricted stock unit awards, and restricted stock awards have been excluded from the calculation of diluted loss per share of common stock, as their effect would be anti-dilutive for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Stock options 308,191 363,537 Restricted stock unit awards 393,700 253,315 Restricted stock awards 67,000 79,805 Total 768,891 696,657 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
INCOME TAXES | |
INCOME TAXES | 8. INCOME TAXES For the three months ended March 31, 2018, the Company's effective tax rate was 1. 8 %. For the three months ended March 31, 2017, the Company’s effective tax rate was 23.6%. The Company’s effective tax rate decreased compared to the corresponding period from the prior year primarily due to the reversal of uncertain tax positions associated with the processing of outstanding amended returns that were accepted in the first quarter of 2017 and the associated refunds received. The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over an extended amount of time. Such objective evidence limits the ability to consider other subjective evidence, such as projections for taxable earnings. The income tax benefit for the three months ended March 31, 2018 does not include income tax benefits for all of the losses incurred because the Company recorded valuation allowances against significantly all of its federal, state and foreign deferred tax assets. The Company has recorded valuation allowances against the associated deferred tax assets for the amounts it deems are not more likely than not realizable. Based on management’s belief that not all the net operating losses are realizable, a federal valuation allowance and additional state valuation allowances were maintained during the three months ended March 31, 2018 and 2017. In addition, due to the Company’s recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the condensed consolidated financial statements. The amount of the valuation allowances considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS Stock Dividend On May 1, 2018, the Board of Directors approved a 5% stock dividend (or 0.05 share for each share outstanding) on the outstanding shares of common stock of the Company, par value $0.01 per share. The stock dividend is payable on May 29, 2018 to shareholders of record on May 14, 2018. Shareholders will receive cash in lieu of any fractional shares that they otherwise would have been entitled to receive in connection with the stock dividend. The anticipated impact on the 2017 condensed consolidated financial statements is reflected in Note 4. The anticipated impact of all loss per common share for the quarter ended March 31, 2018 referenced within this Form 10-Q have been adjusted for the 5% stock dividend to be paid on May 29, 2018 to shareholders of record as of May 14, 2018 (excluding fractional shares that cannot be determined at this date). |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements for the three months ended March 31, 2018 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Eagle Canada, Inc., Dawson Seismic Services Holdings, Inc., Eagle Canada Seismic Services ULC, and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
Notes Receivable | Notes Receivable. The Company’s notes receivable consist of one note receivable from the purchaser of certain dynamite energy source drilling equipment. This note receivable is stated at the unpaid principal balance. An allowance for note losses was not deemed necessary at March 31, 2018. Interest is recognized over the term of the note and is calculated using the simple-interest method. Amounts payable to the Company under the note receivable are fully collateralized by the specific dynamite energy source drilling equipment sold to the note payor. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. Management prepares its allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs and its current client base. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. The Company’s allowance for doubtful accounts was $250,000 at March 31, 2018 and December 31, 2017. |
Property and Equipment | Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets . Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value. |
Stock-Based Compensation | Stock-Based Compensation . The Company measures all stock-based compensation awards, which include stock options, restricted stock, restricted stock units and common stock awards, using the fair value method and recognizes compensation expense as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP 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. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition . Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is recognized based on square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated revenue for the service contract. In the case of a cancelled service contract, the client is billed and revenue is recognized for any third party charges and square miles of data recorded up to the date of cancellation. The Company receives reimbursements for certain out-of-pocket expenses under the terms of the service contracts. The amounts billed to clients are included at their gross amount in the total estimated revenue for the service contract. Clients are billed as permitted by the service contract. Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. If billing occurs prior to the revenue recognition or billing exceeds the revenue recognized, the amount is considered deferred revenue and a contract liability. Conversely, if the revenue recognition exceeds the billing, the exceeded amount is considered unbilled receivable and a contract asset. As services are performed, those deferred revenue amounts are recognized as revenue. In some instances, third-party permitting, surveying, drilling, helicopter, equipment rental and mobilization costs that directly relate to the contract are utilized to fulfill the contract obligations. These fulfillment costs are capitalized in other current assets and amortized based on the total square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated fulfillment costs for the service contract. Estimates for total revenue and total fulfillment cost on any service contract are based on significant qualitative and quantitative judgments. Management considers a variety of factors such as whether various components of the performance obligation will be performed internally or externally, cost of third party services, and facts and circumstances unique to the performance obligation in making these estimates. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Topic 606 related to revenue recognition in which an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 effective January 1, 2018, using the full retrospective method, which required us to adjust our condensed consolidated financial statements from amounts previously reported for each prior reporting period presented. This included the recognition of additional revenue and expense deferred from 2016 into the first quarter of 2017 as we had not yet recorded data, but without a change in income tax as the Company was in a full valuation allowance. In addition, adoption of the standard resulted in an increase in accounts receivable, other current assets and deferred revenue due to the recognition in the first quarter of 2017 of deferrals from 2016. The Company recognized the cumulative effect of adopting the guidance as an adjustment to our opening balance of retained earnings as of January 1, 2016. The Company elected several practical expedients including (i) to ignore the financing component when estimating the transaction price for service contracts completed within one year, (ii) to exclude sales tax collected from the customer when determining the transaction price, (iii) to not restate contracts that begin and end within the same annual reporting period, (iv) to use the transaction price at the completion of the contract to retrospectively apply the new guidance, and (v) to not disclose the remaining performance obligations for the reporting periods presented before the date of initial application. Adjustments to Condensed Consolidated Financial Statements related to Topic 606 are shown in Note 4 - Supplemental Consolidated Financial Statement Information. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act passed by the U.S. federal government in December 2017 . The Company adopted ASU 2018-02 in the first quarter of 2018 and recorded an adjustment to Stockholders’ Equity within the Condensed Consolidated Balance Sheets that did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting . The Company adopted this guidance in the first quarter of 2018, and it did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323), which stated additional qualitative disclosures should be considered to assess the significance of the impact upon adoption. This ASU is effective for the annual period beginning after December 15, 2018, and for annual and interim periods thereafter. Early adoption is permitted. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. The Company is currently evaluating the new guidance and practical expedients to determine the impact they will have on the Company’s condensed consolidated financial statements. The Company believes that the most significant change will be to the Condensed Consolidated Balance Sheets as the Company’s asset and liability balances will increase for operating leases that are currently off-balance sheet. |
SUPPLEMENTAL CONSOLIDATED FIN16
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ASU 2014-09 | |
Schedule of impacts from adoption of Topic 606 | Select line items from the Company’s Condensed Consolidated Balance Sheets which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands): December 31, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Current assets: Accounts receivable, net $ $ $ Prepaid expenses and other current assets $ $ $ Current liabilities: Deferred revenue $ $ $ Stockholders' equity: Common Stock $ $ $ Additional paid-in capital $ $ $ Retained deficit $ $ $ $ Select line items from the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands except share and per share data): Three Months Ended March 31, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Operating revenues $ $ $ Operating costs: Operating expenses $ $ $ Loss from operations $ $ $ Net loss $ $ $ Basic and diluted loss per share of common stock $ (0.42) $ — $ 0.02 $ (0.40) Weighted average equivalent common shares outstanding and outstanding - assuming dilution 21,659,539 1,082,977 22,742,516 Select line items from the Company’s Condensed Consolidated Statements of Cash Flows which reflect the adoption of the new standard are as follows (in thousands): Three Months Ended March 31, 2017 As Previously Reported Topic 606 Adjustments As Adjusted Cash flows from operating activities: Net loss $ $ $ Change in current assets and liabilities: Increase in accounts receivable $ $ $ Increase in prepaid expenses and other current assets $ $ $ Increase in accounts payable $ $ $ Decrease in deferred revenue $ $ $ Net cash used in operating activities $ $ — $ |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
DEBT | |
Schedule of aggregate principal amount of outstanding notes payable and the interest rates | March 31, 2018 December 31, 2017 Notes payable to finance company for insurance Aggregate principal amount outstanding $ $ — Interest rates — |
Schedule of aggregate maturities of notes payable | The aggregate maturities of the notes payable at March 31, 2018 are as follows (in thousands): January 2018 - December 2018 $ |
Schedule of aggregate maturities of obligations under capital leases | The aggregate maturities of obligations under capital leases at March 31, 2018 are as follows (in thousands): April 2018 - March 2019 $ April 2019 - March 2020 April 2020 - March 2021 April 2021 - March 2022 Obligations under capital leases $ |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
NET LOSS PER SHARE | |
Schedule of computation of basic and diluted loss per share | Three Months Ended March 31, 2018 2017 (as adjusted) Net loss $ (1,709) $ (9,152) Weighted average common shares outstanding: Basic 22,879,805 22,742,516 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — Diluted 22,879,805 22,742,516 Basic loss per share of common stock $ (0.07) $ (0.40) Diluted loss per share of common stock $ (0.07) $ (0.40) |
Schedule of weighted average numbers of stock options, restricted stock units, and non-participating restricted stock awards that have been excluded from the calculation of diluted loss per share attributable to common stock | Three Months Ended March 31, 2018 2017 Stock options 308,191 363,537 Restricted stock unit awards 393,700 253,315 Restricted stock awards 67,000 79,805 Total 768,891 696,657 |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Notes Receivable and Allowance for Doubtful Accounts (Details) | Mar. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of notes receivable | item | 1 | |
Allowance for doubtful accounts | $ | $ 250,000 | $ 250,000 |
SUPPLEMENTAL CONSOLIDATED FIN20
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | ||||
Deferred costs incurred to fulfill contracts with customers | $ 4,688 | $ 3,180 | $ 2,991 | $ 3,668 |
Total deferred costs amortized | 6,999 | 13,015 | ||
Revenue recognized that was included in deferred revenue balances at beginning of period | 3,683 | $ 4,655 | ||
Deferred revenue | $ 5,833 | $ 6,314 | $ 5,385 |
SUPPLEMENTAL CONSOLIDATED FIN21
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION – Impact of Adoption of Topic 606 on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | May 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Accounts receivable, net | $ 41,215 | $ 33,156 | ||
Prepaid expenses and other current assets | 9,396 | 7,340 | ||
Current liabilities: | ||||
Deferred revenue | 5,833 | 6,314 | $ 5,385 | |
Stockholders' equity: | ||||
Common Stock | 229 | 229 | ||
Additional paid-in capital | 152,093 | 151,881 | ||
Retained deficit | $ (11,678) | (10,012) | ||
Subsequent Event | ||||
Common stock dividend declared, percentage of shares outstanding | 5.00% | |||
Excluding stock dividend | ||||
Stockholders' equity: | ||||
Common Stock | 11 | |||
Additional paid-in capital | 8,046 | |||
Retained deficit | (8,057) | |||
ASU 2014-09 | As Previously Reported | ||||
Current assets: | ||||
Accounts receivable, net | 33,138 | |||
Prepaid expenses and other current assets | 4,677 | |||
Current liabilities: | ||||
Deferred revenue | 3,699 | |||
Stockholders' equity: | ||||
Common Stock | 218 | |||
Additional paid-in capital | 143,835 | |||
Retained deficit | (2,021) | |||
ASU 2014-09 | Adjustments | ||||
Current assets: | ||||
Accounts receivable, net | 18 | |||
Prepaid expenses and other current assets | 2,663 | |||
Current liabilities: | ||||
Deferred revenue | 2,615 | |||
Stockholders' equity: | ||||
Retained deficit | $ 66 |
SUPPLEMENTAL CONSOLIDATED FIN22
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION – Impact of Adoption of Topic 606 on Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands | May 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Operating revenues | $ 49,880 | $ 42,366 | |
Operating costs: | |||
Operating expenses | 38,759 | 39,974 | |
Loss from operations | (1,640) | (12,139) | |
Net loss | $ (1,709) | $ (9,152) | |
Basic and diluted loss per share of common stock | $ (0.40) | ||
Weighted average equivalent common shares outstanding - assuming dilution | 22,879,805 | 22,742,516 | |
Subsequent Event | |||
Common stock dividend declared, percentage of shares outstanding | 5.00% | ||
ASU 2014-09 | As Previously Reported | |||
Operating revenues | $ 41,927 | ||
Operating costs: | |||
Operating expenses | 39,537 | ||
Loss from operations | (12,141) | ||
Net loss | $ (9,154) | ||
Basic and diluted loss per share of common stock | $ (0.42) | ||
Weighted average equivalent common shares outstanding - assuming dilution | 21,659,539 | ||
ASU 2014-09 | Adjustments | |||
Operating revenues | $ 439 | ||
Operating costs: | |||
Operating expenses | 437 | ||
Loss from operations | 2 | ||
Net loss | $ 2 | ||
Excluding stock dividend | |||
Operating costs: | |||
Basic and diluted loss per share of common stock | $ 0.02 | ||
Weighted average equivalent common shares outstanding - assuming dilution | 1,082,977 |
SUPPLEMENTAL CONSOLIDATED FIN23
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION – Impact of Adoption of Topic 606 on Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (1,709) | $ (9,152) |
Change in current assets and liabilities: | ||
Increase in accounts receivable | (9,036) | (8,102) |
Increase in prepaid expenses and other current assets | (1,755) | (47) |
Increase in accounts payable | 2,845 | 1,424 |
Decrease in deferred revenue | (481) | (1,131) |
Net cash used in operating activities | $ 754 | (6,749) |
ASU 2014-09 | As Previously Reported | ||
Cash flows from operating activities: | ||
Net loss | (9,154) | |
Change in current assets and liabilities: | ||
Increase in accounts receivable | (8,003) | |
Increase in prepaid expenses and other current assets | (308) | |
Increase in accounts payable | 1,248 | |
Decrease in deferred revenue | (791) | |
Net cash used in operating activities | (6,749) | |
ASU 2014-09 | Adjustments | ||
Cash flows from operating activities: | ||
Net loss | 2 | |
Change in current assets and liabilities: | ||
Increase in accounts receivable | (99) | |
Increase in prepaid expenses and other current assets | 261 | |
Increase in accounts payable | 176 | |
Decrease in deferred revenue | $ (340) |
DEBT (Details)
DEBT (Details) | 3 Months Ended |
Mar. 31, 2018USD ($)item | |
Debt Instruments | |
Number of letters of credit issued | item | 3 |
Letter Of Credit | |
Debt Instruments | |
Funds borrowed under Line of Credit | $ 0 |
Credit Agreement | |
Debt Instruments | |
Borrowing, repaying and re-borrowing capacity | $ 20,000,000 |
Percentage of maximum borrowing capacity on eligible accounts receivable | 80.00% |
Percentage of maximum borrowing capacity on eligible core equipment | 50.00% |
Maximum borrowing capacity on core equipment | $ 12,500,000 |
Interest rate (as a percent) | 4.50% |
Minimum tangible net worth | $ 125,000,000 |
Credit Agreement | Prime rate | |
Debt Instruments | |
Variable interest rate basis | prime rate |
Credit Agreement | Minimum | |
Debt Instruments | |
Ratio of current assets to current liabilities | 1.50 |
Credit Agreement | Minimum | Prime rate | |
Debt Instruments | |
Interest rate (as a percent) | 2.50% |
Credit Agreement | Maximum | |
Debt Instruments | |
Debt to tangible net worth ratio | 1 |
Insurance Obligations | |
Debt Instruments | |
Letters of credit issued | $ 1,767,000 |
Workers' Compensation Insurance | |
Debt Instruments | |
Letters of credit issued | 583,000 |
Performance Obligations | |
Debt Instruments | |
Letters of credit issued | $ 75,000 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) $ in Thousands | Mar. 31, 2018USD ($)item |
Aggregate maturities of obligations under capital leases | |
April 2018 - March 2019 | $ 2,740 |
April 2019 - March 2020 | 2,870 |
April 2020 - March 2021 | 1,560 |
April 2021 - March 2022 | 16 |
Obligations under capital leases | $ 7,186 |
Notes payable to finance companies for insurance | |
Notes payable | |
Number of outstanding notes payable | item | 1 |
Aggregate principal amount outstanding | $ 277 |
Interest rate (as a percent) | 3.80% |
January 2018 - December 2018 | $ 277 |
Obligations under capital leases | Minimum | |
Notes payable | |
Interest rate (as a percent) | 4.65% |
Obligations under capital leases | Maximum | |
Notes payable | |
Interest rate (as a percent) | 4.93% |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | May 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Net Loss Per Share Attributable To Common Stock | |||
Net loss | $ (1,709) | $ (9,152) | |
Weighted average common shares outstanding: | |||
Basic | 22,879,805 | 22,742,516 | |
Diluted | 22,879,805 | 22,742,516 | |
Basic loss per share of common stock | $ (0.07) | $ (0.40) | |
Diluted loss per share of common stock | $ (0.07) | $ (0.40) | |
Subsequent Event | |||
Net Loss Per Share Attributable To Common Stock | |||
Common stock dividend declared, percentage of shares outstanding | 5.00% |
NET LOSS PER SHARE - Anti-Dilut
NET LOSS PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted Average | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 768,891 | 696,657 |
Stock options | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 308,191 | 363,537 |
Restricted stock | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 393,700 | 253,315 |
Non-participating restricted stock awards | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 67,000 | 79,805 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
INCOME TAXES | ||
Effective tax rate (as percent) | 1.80% | 23.60% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | May 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Subsequent Event | |||
Common stock dividend declared, percentage of shares outstanding | 5.00% | ||
Common stock, par value (in dollars per share) | $ 0.01 |