Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 04, 2020 | Jun. 28, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | DAWSON GEOPHYSICAL CO | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 54,112,000 | ||
Entity Common Stock, Shares Outstanding | 23,287,410 | ||
Entity Central Index Key | 0000799165 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 26,271,000 | $ 28,729,000 |
Restricted cash | 5,000,000 | |
Short-term investments | 2,350,000 | 10,583,000 |
Accounts receivable, net of allowance for doubtful accounts of $250 at December 31, 2019 and 2018 | 24,356,000 | 25,338,000 |
Current maturities of notes receivable | 66,000 | 64,000 |
Prepaid expenses and other current assets | 7,575,000 | 12,311,000 |
Total current assets | 65,618,000 | 77,025,000 |
Property and equipment | 284,647,000 | 293,948,000 |
Less accumulated depreciation | (231,098,000) | (222,407,000) |
Property and equipment, net | 53,549,000 | 71,541,000 |
Right-of-use assets | 6,605,000 | |
Notes receivable, net of current maturities | 1,394,000 | 1,447,000 |
Intangibles, net | 385,000 | 379,000 |
Long-term deferred tax assets, net | 57,000 | 293,000 |
Total assets | 127,608,000 | 150,685,000 |
Current liabilities: | ||
Accounts payable | 3,952,000 | 5,427,000 |
Accrued liabilities: | ||
Payroll costs and other taxes | 1,963,000 | 1,034,000 |
Other | 3,599,000 | 3,643,000 |
Deferred revenue | 3,481,000 | 10,501,000 |
Current maturities of notes payable and finance leases | 4,062,000 | 6,683,000 |
Current maturities of operating lease liabilities | 1,200,000 | |
Total current liabilities | 18,257,000 | 27,288,000 |
Long-term liabilities: | ||
Notes payable and finance leases, net of current maturities | 96,000 | 6,097,000 |
Operating lease liabilities, net of current maturities | 5,940,000 | |
Deferred tax liabilities, net | 134,000 | |
Other accrued liabilities | 150,000 | 150,000 |
Total long-term liabilities | 6,186,000 | 6,381,000 |
Operating 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, 23,335,855 and 23,018,441 shares issued, and 23,287,410 and 22,969,996 shares outstanding at December 31, 2019 and 2018, respectively | 233,000 | 230,000 |
Additional paid-in capital | 154,235,000 | 153,268,000 |
Retained deficit | (49,731,000) | (34,518,000) |
Treasury stock, at cost; 48,445 shares | ||
Accumulated other comprehensive loss, net | (1,572,000) | (1,964,000) |
Total stockholders’ equity | 103,165,000 | 117,016,000 |
Total liabilities and stockholders’ equity | $ 127,608,000 | $ 150,685,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 250 | $ 250 |
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 | 23,335,855 | 23,018,441 |
Common stock, shares outstanding | 23,287,410 | 22,969,996 |
Treasury stock, shares | 48,445 | 48,445 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||
Operating revenues | $ 145,773,000 | $ 154,156,000 | $ 156,532,000 |
Operating costs: | |||
Operating expenses | 123,024,000 | 132,937,000 | 139,072,000 |
General and administrative | 17,169,000 | 16,287,000 | 16,189,000 |
Depreciation and amortization | 21,826,000 | 29,959,000 | 39,235,000 |
Total cost and expenses | 162,019,000 | 179,183,000 | 194,496,000 |
Loss from operations | (16,246,000) | (25,027,000) | (37,964,000) |
Other income (expense): | |||
Interest income | 548,000 | 400,000 | 306,000 |
Interest expense | (435,000) | (408,000) | (158,000) |
Other income (expense) | 681,000 | (170,000) | 712,000 |
Loss before income tax | (15,452,000) | (25,205,000) | (37,104,000) |
Income tax benefit (expense) | |||
Current | 216,000 | 41,000 | 6,077,000 |
Deferred | 23,000 | 757,000 | (763,000) |
Total income tax benefit | 239,000 | 798,000 | 5,314,000 |
Net loss | (15,213,000) | (24,407,000) | (31,790,000) |
Other comprehensive income (loss): | |||
Net unrealized income (loss) on foreign exchange rate translation, net | 392,000 | (1,141,000) | 816,000 |
Comprehensive loss | $ (14,821,000) | $ (25,548,000) | $ (30,974,000) |
Basic loss per share of common stock | $ (0.66) | $ (1.07) | $ (1.40) |
Diluted loss per share of common stock | $ (0.66) | $ (1.07) | $ (1.40) |
Weighted average equivalent common shares outstanding | 23,179,257 | 22,912,217 | 22,779,377 |
Weighted average equivalent common shares outstanding - assuming dilution | 23,179,257 | 22,912,217 | 22,779,377 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive (Loss) Income | Total |
Balance at beginning of period at Dec. 31, 2016 | $ 228 | $ 151,185 | $ 21,657 | $ (1,596) | $ 171,474 |
Balance at beginning of period (in shares) at Dec. 31, 2016 | 22,795,039 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (31,790) | (31,790) | |||
Unrealized income (loss) on foreign exchange rate translation | 1,091 | ||||
Income tax expense (benefit) | (275) | ||||
Other comprehensive income (loss) | 816 | 816 | |||
Issuance of common stock under stock compensation plans | $ 1 | (1) | |||
Issuance of common stock under stock compensation plans (in shares) | 92,448 | ||||
Stock-based compensation expense | 656 | 656 | |||
Issuance of common stock as compensation | 320 | 320 | |||
Issuance of common stock as compensation (in shares) | 67,498 | ||||
Shares exchanged for taxes on stock-based compensation | (158) | (158) | |||
Shares exchanged for taxes on stock-based compensation (in shares) | (28,180) | ||||
Balance at end of period at Dec. 31, 2017 | $ 229 | 152,022 | (10,153) | (780) | 141,318 |
Balance at end of period (in shares) at Dec. 31, 2017 | 22,926,805 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Impact of adopting ASUs | 20 | (20) | |||
Cash in lieu of fractional shares for stock dividend | (1) | (1) | |||
Cash in lieu of fractional shares for stock dividend (in shares) | (101) | ||||
Net loss | (24,407) | (24,407) | |||
Unrealized income (loss) on foreign exchange rate translation | (1,141) | ||||
Other comprehensive income (loss) | (1,141) | (1,141) | |||
Issuance of common stock under stock compensation plans | $ 1 | (1) | |||
Issuance of common stock under stock compensation plans (in shares) | 51,384 | ||||
Stock-based compensation expense | 1,037 | 1,037 | |||
Issuance of common stock as compensation | 331 | 331 | |||
Issuance of common stock as compensation (in shares) | 59,284 | ||||
Shares exchanged for taxes on stock-based compensation | (121) | (121) | |||
Shares exchanged for taxes on stock-based compensation (in shares) | (18,931) | ||||
Balance at end of period at Dec. 31, 2018 | $ 230 | 153,268 | (34,518) | (1,964) | $ 117,016 |
Balance at end of period (in shares) at Dec. 31, 2018 | 23,018,441 | 22,969,996 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Impact of adopting ASUs | 43 | (43) | |||
Net loss | (15,213) | $ (15,213) | |||
Unrealized income (loss) on foreign exchange rate translation | 504 | ||||
Income tax expense (benefit) | (112) | ||||
Other comprehensive income (loss) | 392 | 392 | |||
Issuance of common stock under stock compensation plans | $ 2 | (2) | |||
Issuance of common stock under stock compensation plans (in shares) | 263,459 | ||||
Stock-based compensation expense | 909 | 909 | |||
Issuance of common stock as compensation | $ 1 | 296 | 297 | ||
Issuance of common stock as compensation (in shares) | 119,556 | ||||
Shares exchanged for taxes on stock-based compensation | (236) | (236) | |||
Shares exchanged for taxes on stock-based compensation (in shares) | (65,601) | ||||
Balance at end of period at Dec. 31, 2019 | $ 233 | $ 154,235 | $ (49,731) | $ (1,572) | $ 103,165 |
Balance at end of period (in shares) at Dec. 31, 2019 | 23,335,855 | 23,287,410 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (15,213) | $ (24,407) | $ (31,790) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 21,826 | 29,959 | 39,235 |
Operating lease cost | 1,201 | ||
Non-cash compensation | 1,206 | 1,368 | 976 |
Deferred income tax (benefit) expense | (23) | (757) | 763 |
Change in other accrued long-term liabilities | (1,489) | ||
(Gain) loss on disposal of assets | (86) | 16 | (1,714) |
Remeasurement and other | (139) | (91) | |
Change in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | 1,118 | 6,744 | (16,465) |
Decrease (increase) in prepaid expenses and other current assets | 6,983 | (2,664) | 278 |
(Decrease) increase in accounts payable | (579) | (798) | 1,207 |
Increase (decrease) in accrued liabilities | 1,356 | (777) | 1,458 |
Decrease in operating lease liabilities | (1,150) | ||
(Decrease) increase in deferred revenue | (7,020) | 4,187 | 929 |
Net cash provided by (used in) operating activities | 9,480 | 12,871 | (6,703) |
Cash flows from investing activities: | |||
Capital expenditures, net of non-cash capital expenditures summarized below | (4,396) | (15,745) | (8,675) |
Proceeds from maturity of short-term investments | 33,075 | 55,000 | 61,250 |
Acquisition of short-term investments | (24,842) | (49,000) | (37,583) |
Proceeds from disposal of assets | 297 | 437 | 1,325 |
Proceeds from flood insurance claims | 687 | 375 | |
Proceeds from notes receivable | 51 | 25 | 96 |
Net cash provided by (used in) investing activities | 4,185 | (8,596) | 16,788 |
Cash flows from financing activities: | |||
Proceeds from notes payable | 6,518 | ||
Principal payments on notes payable | (8,165) | (1,180) | (2,186) |
Principal payments on finance leases | (2,855) | (2,699) | (1,076) |
Tax withholdings related to stock-based compensation awards | (236) | (121) | (158) |
Cash in lieu of stock dividend paid | (1) | ||
Net cash (used in) provided by financing activities | (11,256) | 2,517 | (3,420) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 133 | (76) | 724 |
Net increase in cash, cash equivalents and restricted cash | 2,542 | 6,716 | 7,389 |
Cash, cash equivalents and restricted cash at beginning of period | 28,729 | 22,013 | 14,624 |
Cash, cash equivalents and restricted cash at end of period | 31,271 | 28,729 | 22,013 |
Supplemental cash flow information: | |||
Cash paid for interest | 440 | 408 | 143 |
Cash paid for income taxes | 40 | 14 | |
Cash received for income taxes | 55 | 4,791 | |
Non-cash operating, investing and financing activities: | |||
(Decrease) increase in accrued purchases of property and equipment | (927) | 353 | (907) |
Finance leases incurred | 121 | 8,542 | |
Increase in right-of-use assets and operating lease liabilities | 8,252 | ||
Decrease in right-of-use assets for accrued rent | (497) | ||
Increase in right-of-use assets for prepaid rent | 14 | ||
Financed insurance premiums | $ 2,256 | $ 2,317 | 248 |
Equipment sales financed for buyer | (1,500) | ||
Sales tax on equipment sales financed for buyer | $ (132) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. Summary of Significant Accounting Policies Organization and Nature of Operations The Company is a leading provider of onshore seismic data acquisition and processing services. Founded in 1952, the Company acquires and processes 2-D, 3-D and multi-component seismic data 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. The Company operates in the lower 48 states of the U.S. and in Canada. Principles of Consolidation The consolidated financial statements 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. Cash Equivalents For purposes of the financial statements, the Company considers demand deposits, certificates of deposit, overnight investments, money market funds and all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. Allowance for Doubtful Accounts Management determines the need for any 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. 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. No impairment charges were recognized for the years ended December 31, 2019, 2018 and 2017. Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair market value of the related assets. Assets under finance leases are amortized using the straight-line method over the initial lease term. Amortization of assets under finance leases is included in depreciation expense . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) requiring organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Topic 842 also requires qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, the Company adopted Topic 842 using the optional cumulative-effect transition method of adoption, under which the new standards were applied prospectively rather than restating the prior periods presented. As a result, certain accounts lack a comparable value for the same period of 2018 and 2017, specifically accounts and values associated with operating leases and ROU assets. As a result of adopting the new standard, the Company recorded ROU assets and operating lease liabilities of approximately $7,769,000 and $8,252,000, respectively, on the consolidated balance sheet for 2019. The ROU assets equaled the operating lease liabilities, excluding the impact of reclassifying prepaid rent and deferred rent of approximately $14,000 and $497,000, respectively. These amounts were previously recorded in prepaid expenses and other current assets and other accrued liabilities, respectively. The new standard did not materially impact the Company’s results of operation or cash flows. In addition, the Company made an accounting policy election not to recognize leases with an initial term of 12 months or less and not to separate lease and non-lease components. The Company elected the practical expedients package, which among other things, allowed the Company to carry forward the historical lease classification. The Company did not elect the hindsight or land easement practical expedients. Several of the Company’s leases include options to renew, with renewal terms that can extend from one to 10 years or more. The exercise of lease renewal options is primarily at the Company’s discretion. To measure operating lease recognition, the Company evaluated its lease agreements to determine if they had economic incentives for renewal or options to purchase. The Company deems leasehold improvements as one of the few economic incentives that would entice the Company to renew a lease and all of its leasehold improvements are currently fully amortized. Where readily determinable, the Company uses the implicit interest rate in determining the present value of future minimum lease payments. In the absence of an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company gives consideration to its outstanding debt, as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. The Company’s ROU assets are amortized to operating lease cost over the lease terms on a straight-line basis. Intangibles The Company has intangible assets consisting primarily of trademarks/tradenames (which are not amortized) resulting from a business combination. The Company tests for impairment on an annual basis during the fourth quarter, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. No impairment charges were recognized for the years ended December 31, 2019, 2018 and 2017. 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 generally 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 excess is considered an 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 FASB issued new guidance 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. Codified as Topic 606, this new guidance also required 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 consolidated financial statements from amounts previously reported for each prior reporting period presented. The Company recognized the cumulative effect of adopting the guidance as an adjustment to its opening balance of retained earnings as of January 1, 2016. The Company elected several ongoing and transitional 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 expense incremental costs to obtain a customer contract if the amortization period for those costs would otherwise be one year or less, (iv) to not restate contracts that begin and end within the same annual reporting period, (v) to use the transaction price at the completion of the contract to retrospectively apply the new guidance, and (vi) to not disclose the remaining performance obligations for the reporting periods presented before the date of initial application. The most significant impact to the Company of the adoption of Topic 606 relates to the deferred recognition of revenues and expenses to fulfill contracts with customers until data recording has begun. 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, net of actual forfeitures, as operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The functional currency of the Company’s foreign subsidiaries is generally the local currency. Any transactions denominated in a currency other than the functional currency are remeasured with the resulting unrealized gain or loss recognized in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). All assets and liabilities in the functional currency are then translated into U.S. Dollars at the exchange rate on the balance sheet date. Income and expenses are translated using the exchange rate applicable to each transaction. Equity transactions are translated using historical exchange rates. Adjustments resulting from translation are recorded as a separate component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Realized foreign currency transaction gains (losses) are included in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). Income Taxes The Company accounts for income taxes by recognizing amounts of taxes payable or refundable for the current year, and by using an asset and liability approach in recognizing the amount of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Management determines deferred taxes by identifying the types and amounts of existing temporary differences, measuring the total deferred tax asset or liability using the applicable tax rate in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates of deferred tax assets and liabilities is recognized in income in the year of an enacted rate change. The deferred tax asset is reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management’s methodology for recording income taxes requires judgment regarding assumptions and the use of estimates, including determining the annual effective tax rate and the valuation of deferred tax assets, which can create variances between actual results and estimates and could have a material impact on the Company’s provision or benefit for income taxes. Due to recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the Consolidated Statements of Operations and Comprehensive Loss. The Company’s effective tax rates differ from the statutory federal rate of 21% for certain items such as state and local taxes, valuation allowances, non-deductible expenses and discrete items. 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. Reclassifications Certain reclassifications have been made to the year ended December 31, 2017 consolidated financial statements to conform to the 2019 presentation. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Short-Term Investments | |
Short-Term Investments | 2. The Company had short-term investments at December 31, 2019 and 2018 consisting of certificates of deposit with original maturities greater than three months but less than a year. Certificates of deposits with any given banking institution did not exceed the FDIC insurance limit at December 31, 2019 or 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Financial Instruments | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3. Fair Value of Financial Instruments At December 31, 2019 and 2018, 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, notes payable and finance leases. At December 31, 2019 the Company’s financial instruments also included restricted cash and operating leases. Due to the short-term maturities of cash and cash equivalents, restricted cash, 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, notes payable, finance leases and operating leases approximate their fair value based on a comparison with the prevailing market interest rates. 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, finance leases, operating leases and investments in certificates of deposit are level 2 measurements in the fair value hierarchy . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment | |
Property and Equipment | 4. Property and Equipment Property and equipment (in thousands), together with the related estimated useful lives at December 31, 2019 and 2018, were as follows: December 31, 2019 2018 Useful Lives Land, building and other $ $ 3 to 40 years Recording equipment 5 to 10 years Vibrator energy sources 5 to 15 years Vehicles 1.5 to 10 years Less accumulated depreciation Property and equipment, net $ $ |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Consolidated Financial Statement Information | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | 5. Supplemental Consolidated Financial Statement Information Other current liabilities (in thousands) consist of the following at December 31, 2019 and 2018: December 31, 2019 2018 Accrued self-insurance reserves $ $ Other accrued expenses and current liabilities Other current liabilities $ $ Disaggregated Revenues The Company has one line of business, acquiring and processing seismic data in North America. Our chief operating decision maker (President, CEO, and Chairman of the Board) makes operating decisions and assesses performance based on the Company as a whole. Accordingly, the Company is considered to be in a single reportable segment. The following table presents the Company’s operating revenues (unaudited and in thousands) disaggregated by geographic region: Year Ended December 31, 2019 2018 2017 Operating Revenues United States $ $ $ Canada Total $ $ $ Deferred Costs (in thousands) Deferred costs were $6,994 and $2,991 at January 1, 2019 and 2018, respectively. The Company’s prepaid expenses and other current assets at December 31, 2019 and 2018 included deferred costs incurred to fulfill contracts with customers of $2,525 and $6,994, respectively. Deferred costs at December 31, 2019 compared to January 1, 2019 decreased primarily as a result of the completion of several projects for clients with significant deferred fulfillment costs at January 1, 2019. Deferred cost at December 31, 2018 compared to January 1, 2018 increased primarily as a result of new projects for clients with significant deferred fulfillment costs at December 31, 2018. The amount of total deferred costs amortized for the years ended December 31, 2019 and 2018 was $38,468 and $36,615, respectively. There were no material impairment losses incurred during these periods. Deferred Revenue (in thousands) Deferred revenue was $10,501 and $6,314 at January 1, 2019 and 2018, respectively. The Company’s deferred revenue at December 31, 2019 and 2018 was $3,481 and $10,501, respectively. Deferred revenue at December 31, 2019 compared to January 1, 2019 decreased primarily as a result of completing multiple large projects for clients throughout the year. Deferred revenue at December 31, 2018 compared to January 1, 2018 increased primarily as a result of new projects for clients with large third party reimbursables where data has not yet been recorded. Revenue recognized for the year ended December 31, 2019 that was included in the contract liability balance at the beginning of 2019 was $10,501. Revenue recognized for the year ended December 31, 2018 that was included in the contract liability balance at the beginning of 2018 was $5,945. Deferred revenue not recognized during either year relates to projects that have not yet started or were cancelled. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
DEBT | 6. Debt On September 30, 2019, the Company entered into a new Loan Agreement with Dominion Bank. The Loan Agreement provides for a Revolving Credit Facility in an amount up to the lesser of (i) $15,000,000 or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable plus 100% of the amount on deposit with the Lender in the Company’s collateral account, consisting of a restricted CDARS account of $5,000,000. Dominion Loan Agreement Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 6.00% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 3.50%. The Company will pay a commitment fee of 0.10% per annum on the difference of (a) $15,000,000 minus the Deposit minus (b) the daily average usage of the Revolving Credit Facility. The Loan Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets. The Company is also obligated to meet certain financial covenants under the Loan Agreement, including maintaining a tangible net worth of $75,000,000 and specified ratios with respect to current assets and liabilities and debt to tangible net worth. The Company’s obligations under the Loan Agreement are secured by a security interest in the collateral account (including the Deposit) with the Lender and future accounts receivable and related collateral. As of December 31, 2019, the Company has not borrowed any amounts under the Revolving Credit Facility. The maturity date of the Loan Agreement is September 30, 2020. The Company does not currently have any notes payable under the Revolving Credit Facility. Veritex Credit Agreement On September 30, 2019, the Company’s Veritex Line of Credit under the Veritex Loan Agreement by and between the Company and Veritex matured pursuant to its terms. No amounts were borrowed under the Veritex Line of Credit. In connection with the maturity of the Veritex Line of Credit and entry into the Loan Agreement with Dominion Bank, the Company paid off all amounts owed pursuant to the term loan under the Veritex Loan Agreement of $4,355,665. Veritex Letters of Credit As of December 31, 2019, Veritex has issued two letters of credit under the Veritex Loan Agreement. The first letter of credit is in the amount of $1,767,000 to support payment of the Company’s insurance obligations. The second letter of credit is in the amount of $583,000 to support the Company’s workers compensation insurance. Each of the letters of credit are secured by a certificate of deposit with Veritex . Other Indebtedness As of December 31, 2019, the Company has two notes payable to a finance company for various insurance premiums totaling $1,746,000. In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Consolidated Balance Sheets as of December 31, 2019 and 2018 include finance leases of $2,412,000 and $5,125,000, respectively. Maturities of Debt The Company’s aggregate principal amount (in thousands) of outstanding notes payable and the interest rates and monthly payments as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Notes payable to commercial banks Aggregate principal amount outstanding $ — $ Interest rate — December 31, 2019 December 31, 2018 Notes payable to finance company for insurance Aggregate principal amount outstanding $ $ Interest rate 4.05% - 4.99% The Company’s aggregate maturities of finance leases (in thousands) at December 31, 2019 are as follows: January 2020 - December 2020 $ January 2021 - December 2021 January 2022 - December 2022 January 2023 - December 2023 Finance lease obligations $ Interest rates on these leases ranged from 4.65 % to 5.37%. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 7. Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta. On January 1, 2019, the Company adopted Topic 842 using the optional cumulative-effect transition method of adoption, under which the new standards were applied prospectively rather than restating the prior periods presented. As a result, certain accounts lack a comparable value for the same period of 2018 and 2017, specifically accounts and values associated with operating leases and ROU assets. The components of lease cost (in thousands) for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Finance lease cost Amortization of right-of-use assets $ $ $ Interest on lease liabilities Total finance lease cost Operating lease cost Short-term lease cost — — — Total lease cost $ $ $ Supplemental cash flow information related to leases (in thousands) for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ $ $ Operating cash flows from finance leases $ $ $ Financing cash flows from finance leases $ $ $ Right-of-use assets obtained in exchange for lease obligations Operating leases $ $ — $ — Finance leases $ $ — $ — Supplemental balance sheet information related to leases (in thousands) as of December 31, 2019 and 2018 was as follows: December 31, 2019 2018 Operating leases Operating lease right-of-use assets $ $ — Operating lease liabilities - current $ $ — Operating lease liabilities - long-term — Total operating lease liabilities $ $ — Finance leases Property and equipment, at cost $ $ Accumulated depreciation Property and equipment, net $ $ Finance lease liabilities - current $ $ Finance lease liabilities - long-term Total finance lease liabilities $ $ Weighted average remaining lease term Operating leases 6.3 years 7.3 years Finance leases 0.8 years 1.8 years Weighted average discount rate Operating leases — Finance leases Maturities of lease liabilities (in thousands) at December 31, 2019 are as follows: Operating Leases Finance Leases January 2020 - December 2020 $ $ January 2021 - December 2021 January 2022 - December 2022 January 2023 - December 2023 January 2024 - December 2024 — Thereafter — Total payments under lease agreements Less imputed interest Total lease liabilities $ $ |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation Since the date of its effectiveness on May 5, 2016, the Company issues new grants of stock-based awards pursuant to the Dawson Geophysical Company 2016 Stock and Performance Incentive Plan (the “2016 Plan”). All of the Company’s prior plans have expired pursuant to their terms and no awards previously granted under prior plans remain outstanding. The awards outstanding and available under the 2016 Plan and their associated accounting treatment are discussed below. In 2016, the Company adopted the 2016 Plan, which provides for the issuance of up to 1,000,000 shares of authorized Company common stock. As of December 31, 2019, there were approximately 330,861 shares available for future issuance. The 2016 Plan provides for the issuance of stock-based compensation awards, including stock options, common stock, restricted stock, restricted stock units and other forms. Stock option grant prices awarded under the 2016 Plan may not be less than the fair market value of the common stock subject to such option on the grant date, and the term of stock options shall extend no more than ten years after the grant date. The 2016 Plan terminates May 5, 2026. Historically, the Company’s employees and officers that held unvested restricted stock were entitled to dividends when the Company paid dividends. The Company’s employees and officers that hold unvested restricted stock awarded during 2016 or thereafter are not entitled to dividends when the Company pays dividends. Impact of Stock-Based Compensation The following table summarizes stock-based compensation expense (in thousands), which is included in operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Restricted stock awards $ $ $ Restricted stock unit awards Common stock awards Total compensation expense $ $ $ Stock Options A summary of the outstanding stock options as of December 31, 2019 as well as activity during the year then ended is as follows: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Balance as of December 31, 2018 87,497 $ 11.23 Forfeited — $ — Expired (87,497) $ 11.23 Balance as of December 31, 2019 — $ — — Exercisable as of December 31, 2019 — $ — — Stock options issued under prior plans were a combination of incentive stock options and non-qualified stock options. For incentive stock options, no tax deduction is recorded when options are awarded. If an exercise and sale of vested options results in a disqualifying disposition, a tax deduction for the Company occurs. Outstanding options at December 31, 2018 expired in July 2019. There were no unrecognized compensation costs related to stock options as of December 31, 2019. There were no options granted or vested and no excess tax benefits from disqualifying dispositions during the years ended December 31, 2019, 2018 and 2017. No options were exercised during the years ended December 31, 2019, 2018 and 2017. No cash was received from option exercises during the years ended December 31, 2019, 2018 and 2017. Restricted Stock Awards There were no restricted stock grants in the years ended December 31, 2019, 2018 and 2017. The fair value of restricted stock awards equals the market price of the Company’s stock on the grant date and the awards generally vest in one to three years or in annual increments over three years. A summary of the status of the Company’s nonvested restricted stock awards as of December 31, 2019 and activity during the year then ended is as follows: Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 65,974 $ 3.65 Vested (65,974) $ 3.65 Nonvested as of December 31, 2019 — $ — As of December 31, 2019, there are no unrecognized compensation costs related to nonvested restricted stock awards. The aggregate vesting date fair value of restricted stock for the years ended December 31, 2019, 2018 and 2017 was $255,000, $48,000 and $84,000, respectively. Restricted Stock Unit Awards The Company did not grant any restricted stock units for the year ended December 31, 2019. The Company granted 268,000 and 238,350 restricted stock unit awards during the years ended December 31, 2018 and 2017, respectively, with a weighted average grant date fair value of $7.14 and $3.96, respectively. The fair value of restricted stock unit awards equals the market price of the Company’s stock on the grant date and the awards generally vest in one to three years or in annual increments over three years. A summary of the Company’s nonvested restricted stock unit awards as of December 31, 2019 and activity during the year then ended is as follows: Number of Restricted Stock Unit Awards Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 627,085 $ 5.03 Granted — $ — Vested (197,485) $ 3.74 Forfeited (19,500) $ 5.41 Nonvested as of December 31, 2019 410,100 $ 5.64 As of December 31, 2019, there were approximately $871,000 of unrecognized compensation costs related to nonvested restricted stock unit awards. These costs are expected to be recognized over a weighted average period of 1.00 years. The aggregate vesting date fair value of restricted stock units for the years ended December 31, 2019, 2018 and 2017 was $710,000, $273,000 and $422,000, respectively. Common Stock Awards The Company granted common stock awards with immediate vesting to outside directors and employees during the years ended December 31, 2019, 2018 and 2017 as follows: Number of Common Stock Awards Weighted Average Grant Date Fair Value Year ended December 31, 2019 119,556 $ 2.48 Year ended December 31, 2018 59,284 $ 5.59 Year ended December 31, 2017 67,498 $ 4.74 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Dividends | |
Dividends | 9. Dividends The Company did not issue any stock dividends during calendar years 2019 or 2017. The Board of Directors approved a 5% stock dividend (or 0.05 share for each share outstanding) on the outstanding shares of our common stock on May 1, 2018. The stock dividend was paid on May 29, 2018 to shareholders of record on May 14, 2018. The Company has not paid cash dividends during calendar years 2019, 2018 and 2017. While there are currently no restrictions prohibiting the Company from paying cash dividends, the Board of Directors, after consideration of economic and market conditions affecting the energy industry in general, and the oilfield services business in particular, determined that the Company would not pay a cash dividend in respect of the Company’s common stock for the foreseeable future. Payment of any type of dividends in the future will be at the discretion of the Company’s board and will depend on our financial condition, results of operations, capital and legal requirements, and other factors deemed relevant by the board. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 10. Employee Benefit Plans The Company provides a 401(k) plan as part of its employee benefits package in order to retain quality personnel. The Company elected to match 100% of the employee contributions up to a maximum of 6% of the participant’s applicable compensation under its 401(k) plan for the years ended December 31, 2019, 2018 and 2017. The Company’s matching contributions under its 401(k) plan for the years ended December 31, 2019, 2018 and 2017 were approximately $1,340,000, $1,505,000 and $1,480,000, respectively. |
Advertising Costs
Advertising Costs | 12 Months Ended |
Dec. 31, 2019 | |
Advertising Costs | |
Advertising Costs | 11. Advertising Costs Advertising costs are charged to expense as incurred. Advertising costs for the years ended December 31, 2019, 2018 and 2017 totaled $351,000, $498,000 and $371,000, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
INCOME TAXES | 12. Income Taxes The Company’s components of loss before income tax (in thousands) are as follows: Year Ended December 31, 2019 2018 2017 Domestic $ $ $ Foreign Loss before income tax $ $ $ The Company’s components of income tax benefit (in thousands) are as follows: Year Ended December 31, 2019 2018 2017 Current federal benefit $ $ $ Current state (expense) benefit Current foreign benefit — — Deferred federal expense Deferred state benefit Deferred foreign benefit (expense) Income tax benefit $ $ $ The 2017 Tax Cuts and Jobs Act was enacted on December 22, 2017 resulting in significant changes to the Internal Revenue Code. This reform changed the U.S. Statutory tax rate from 35% to 21% for tax years beginning after December 31, 2017. The Company was required to recognize the effect of the tax law changes in the period of enactment, such as remeasuring the domestic deferred tax assets and liabilities as well as reassessing the net realizability of deferred tax assets and liabilities. Due to the Company’s current loss position and valuation allowances, the tax reform did not have a material impact on its consolidated financial statements. In December 2017, the SEC staff issued Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows companies to record provisional amounts during a measurement period not to extend beyond one year from the enactment date. The Tax Cuts and Jobs act was enacted in late fourth quarter of 2017 and provisional amounts were recorded. Subsequent guidance was received throughout the year and the accounting of deferred tax remeasurement was completed in accordance with SAB 118. Adjustments did not have a material impact on the Company’s consolidated financial statements due to the domestic loss position and the associated valuation allowances on the domestic deferred tax assets. The income tax provision (in thousands) differs from the amount computed by applying the statutory federal income tax rate to loss before income tax as follows: Year Ended December 31, 2019 2018 2017 Tax benefit computed at statutory rate of 21% and 35% (1) $ $ $ Change in valuation allowance State income tax benefit, net of federal tax Foreign loss Tax reform impact to deferred tax balances (2) — — Other Income tax benefit $ $ $ (1) Statutory rate of 21% for years ended December 31, 2019 and 2018 and 35% for year ended December 31, 2017. (2) Due to the Tax Cuts and Jobs Act enacted on December 22, 2017, the Company’s domestic deferred tax assets and liabilities were remeasured from 35% to 21% as of December 31, 2017. The change in tax rate resulted in a decrease to the gross domestic deferred tax asset which is offset by a corresponding decrease to the valuation allowance. The principal components of the Company’s net deferred tax assets (liabilities) (in thousands) are as follows: December 31, 2019 2018 Deferred tax assets: Federal tax net operating loss ("NOL") carryforward $ $ Foreign tax NOL carryforward State tax NOL carryforward Other comprehensive income Deferred revenue Restricted stock and restricted stock unit awards Foreign deferred taxes Right-of-use assets — Canadian start-up costs Self-insurance Workers’ compensation Alternative Minimum Tax ("AMT") credit carryforward Other Gross deferred tax assets Less valuation allowances Net deferred tax assets Deferred tax liabilities: Property and equipment Net deferred tax assets (liabilities) $ $ Domestic deferred tax assets $ $ Foreign deferred tax liabilities — Net deferred tax assets (liabilities) $ $ At December 31, 2019, the Company had a NOL for U.S. federal income tax purposes of approximately $123,434,000. This NOL will begin to expire in 2027. Losses incurred after the year ended December 31, 2017 have no expiration. The Company will carry forward the tax benefits related to federal NOL of approximately $25,921,000. The Company also had state NOL’s that will affect state taxes of approximately $1,692,000 at December 31, 2019. State NOL’s began to expire in 2015. The Company also had a Canadian NOL of $24,683,000 that will begin to expire in 2037. In evaluating the possible sources of taxable income during 2019, the Company determined it is more likely than not that the remaining deferred tax assets will not be realizable. As a result, the Company recorded full valuation allowance against foreign deferred tax assets and its federal and state deferred tax assets with the exception of its trademark intangible and the remaining AMT credit which will be refundable within the next three years. At December 31, 2019 and 2018, the Company did not have any uncertain tax positions. The Company’s policy is to recognize interest and penalties related to uncertain tax position in income tax expense. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2019 | |
Net Loss per Share | |
NET INCOME (LOSS) PER SHARE | 13. 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. The computation of basic and diluted loss per share (in thousands, except share and per share data) is as follows : Year Ended December 31, 2019 2018 2017 Net loss $ (15,213) $ (24,407) $ (31,790) Weighted average common shares outstanding Basic 23,179,257 22,912,217 22,779,377 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — — Diluted 23,179,257 22,912,217 22,779,377 Basic loss per share of common stock $ (0.66) $ (1.07) $ (1.40) Diluted loss per share of common stock $ (0.66) $ (1.07) $ (1.40) The Company had a net loss in the years ended December 31, 2019, 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, in each case as adjusted for the 5% stock dividend paid to shareholders on May 29, 2018, have been excluded from the calculation of diluted loss per share of common stock, as their effect would be anti-dilutive for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Stock options 50,580 240,700 355,264 Restricted stock units 456,817 552,458 348,826 Restricted stock awards 8,133 67,052 76,960 Total 515,530 860,210 781,050 |
Major Clients
Major Clients | 12 Months Ended |
Dec. 31, 2019 | |
Major Clients | |
Major Clients | 14. Major Clients The Company operates in only one business segment, contract seismic data acquisition and processing services. Sales to these clients, as a percentage of operating revenues that exceeded 10%, were as follows: Year Ended December 31, 2019 2018 2017 A — — B — — C — D — — E — F — — |
Areas of Operation
Areas of Operation | 12 Months Ended |
Dec. 31, 2019 | |
Areas of Operation | |
Areas of Operation | 15. Areas of Operation The U.S. and Canada are the only countries of operation for the Company. Revenues for the year ended December 31, 2019 were approximately $145,773,000, of which $129,452,000 was earned in the U.S. and $16,321,000 was earned in Canada. Revenues for the year ended December 31, 2018 were approximately $154,156,000, of which $137,101,000 was earned in the U.S. and $17,055,000 was earned in Canada. Revenues for the year ended December 31, 2017 were approximately $156,532,000, of which $134,442,000 was earned in the U.S. and $22,090,000 was earned in Canada. Net property and equipment as of December 31, 2019 was approximately $53,549,000, of which $45,653,000 was located in the U.S. and $7,896,000 was located in Canada. Net right-of-use assets as of December 31, 2019 were approximately $6,605,000, of which $5,893,000 was located in the U.S. and $712,000 was located in Canada. Net property and equipment as of December 31, 2018 was approximately $71,541,000, of which $62,033,000 was located in the U.S. and $9,508,000 was located in Canada. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
OPERATING COMMITMENTS AND CONTINGENCIES | 16. 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. We are also party to the following legal proceeding: On April 1, 2019, Weatherford International, LLC and Weatherford U.S., L.P. (collectively, “Weatherford”) filed a petition in state district court for Midland County, Texas, in which the Company and eighteen other parties were named as defendants, alleging the Company and/or the other named defendants contributed to or caused contamination of groundwater at and around property owned by Weatherford. Weatherford is seeking declaratory judgment, recovery and contribution for past and future costs incurred in responding to or correcting the contamination at and around the property from each defendant. The Company disputes Weatherford’s allegations with respect to the Company and intends to vigorously defend itself in this case. Subsequent to the filing of the petition, Weatherford filed for bankruptcy protection on July 1, 2019. While the outcome and impact of this legal proceeding on the Company cannot be predicted with certainty, based on currently available information, management believes that the resolution of this proceeding will not have a material adverse effect on our financial condition, results of operations or liquidity. Additionally, 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. As of December 31, 2019, Veritex has issued two letters of credit under the Veritex Loan Agreement. The first letter of credit is in the amount of $1,767,000 to support payment of certain insurance obligations of the Company. The second letter of credit is in the amount of $583,000 to support the Company’s workers compensation insurance. Each of the letters of credit are secured by a certificate of deposit with Veritex . |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | 17. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. Early adoption is permitted. An entity that elects to early adopt in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to measure expected credit losses for certain financial assets using a new, forward-looking current expected credit loss model (“CECL”) that will result in the earlier recognition of allowances for losses. CECL is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period using a modified retrospective approach with a cumulative-effect adjustment to retained earnings for additional loss allowances, if any, as of the beginning of the first reporting period in which the guidance is adopted. The Company’s financial instruments within the scope of this guidance primarily includes trade receivables, and the Company does not expect a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances. Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period and early adoption is permitted. The Company adopted this guidance in the first quarter of 2019 and it did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying, and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In August 2018, the SEC adopted amendments to simplify certain disclosure requirements, as set forth in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which includes a requirement for entities to present the changes in shareholders’ equity in the interim financial statements in quarterly reports on Form 10-Q. This amendment is effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendment and proximity to the filing date for most filers’ quarterly reports, the SEC allowed for a filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date. The Company adopted the SEC’s delayed implementation option and began presenting the changes in shareholders’ equity on an interim basis in the first quarter of 2019. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Concentrations of Credit Risk | |
Concentrations of Credit Risk | 18. Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk at any given time may consist of cash and cash equivalents, restricted cash, money market funds and overnight investment accounts, short-term investments in certificates of deposit, trade and other receivables and other current assets. At December 31, 2019 and 2018, the Company had deposits with domestic and international banks in excess of federally insured limits. Management believes the credit risk associated with these deposits is minimal. Money market funds seek to preserve the value of the investment, but it is possible to lose money investing in these funds. The Company’s sales are to clients whose activities relate to oil and natural gas exploration and production. The Company generally extends unsecured credit to these clients; therefore, collection of receivables may be affected by the economy surrounding the oil and natural gas industry or other economic conditions. The Company closely monitors extensions of credit and may negotiate payment terms that mitigate risk. |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Consolidated Financial Data (Unaudited) | |
Quarterly Consolidated Financial Data (Unaudited) | 19. Quarterly Consolidated Financial Data (unaudited and in thousands, except per share data) Quarter Ended March 31, June 30, September 30, December 31, Year ended December 31, 2019: Operating revenues $ $ $ $ (Loss) income from operations $ $ $ $ Net (loss) income $ $ $ $ Basic (loss) income per share of common stock $ (0.01) $ (0.49) $ 0.09 $ (0.25) Diluted (loss) income per share of common stock $ (0.01) $ (0.49) $ 0.09 $ (0.25) Year ended December 31, 2018: Operating revenues $ $ $ $ Loss from operations $ $ $ $ Net loss $ $ $ $ Basic loss per share of common stock $ (0.07) $ (0.25) $ (0.23) $ (0.51) Diluted loss per share of common stock $ (0.07) $ (0.25) $ (0.23) $ (0.51) Basic and diluted (loss) income per share of common stock are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted information may not equal the annual basic and diluted loss per share of common stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements 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. |
Cash Equivalents | Cash Equivalents For purposes of the financial statements, the Company considers demand deposits, certificates of deposit, overnight investments, money market funds and all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Management determines the need for any 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. |
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. No impairment charges were recognized for the years ended December 31, 2019, 2018 and 2017. |
Leases | Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair market value of the related assets. Assets under finance leases are amortized using the straight-line method over the initial lease term. Amortization of assets under finance leases is included in depreciation expense . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) requiring organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Topic 842 also requires qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, the Company adopted Topic 842 using the optional cumulative-effect transition method of adoption, under which the new standards were applied prospectively rather than restating the prior periods presented. As a result, certain accounts lack a comparable value for the same period of 2018 and 2017, specifically accounts and values associated with operating leases and ROU assets. As a result of adopting the new standard, the Company recorded ROU assets and operating lease liabilities of approximately $7,769,000 and $8,252,000, respectively, on the consolidated balance sheet for 2019. The ROU assets equaled the operating lease liabilities, excluding the impact of reclassifying prepaid rent and deferred rent of approximately $14,000 and $497,000, respectively. These amounts were previously recorded in prepaid expenses and other current assets and other accrued liabilities, respectively. The new standard did not materially impact the Company’s results of operation or cash flows. In addition, the Company made an accounting policy election not to recognize leases with an initial term of 12 months or less and not to separate lease and non-lease components. The Company elected the practical expedients package, which among other things, allowed the Company to carry forward the historical lease classification. The Company did not elect the hindsight or land easement practical expedients. Several of the Company’s leases include options to renew, with renewal terms that can extend from one to 10 years or more. The exercise of lease renewal options is primarily at the Company’s discretion. To measure operating lease recognition, the Company evaluated its lease agreements to determine if they had economic incentives for renewal or options to purchase. The Company deems leasehold improvements as one of the few economic incentives that would entice the Company to renew a lease and all of its leasehold improvements are currently fully amortized. Where readily determinable, the Company uses the implicit interest rate in determining the present value of future minimum lease payments. In the absence of an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company gives consideration to its outstanding debt, as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. The Company’s ROU assets are amortized to operating lease cost over the lease terms on a straight-line basis. |
Intangibles | Intangibles The Company has intangible assets consisting primarily of trademarks/tradenames (which are not amortized) resulting from a business combination. The Company tests for impairment on an annual basis during the fourth quarter, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. No impairment charges were recognized for the years ended December 31, 2019, 2018 and 2017. |
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 generally 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 excess is considered an 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 FASB issued new guidance 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. Codified as Topic 606, this new guidance also required 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 consolidated financial statements from amounts previously reported for each prior reporting period presented. The Company recognized the cumulative effect of adopting the guidance as an adjustment to its opening balance of retained earnings as of January 1, 2016. The Company elected several ongoing and transitional 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 expense incremental costs to obtain a customer contract if the amortization period for those costs would otherwise be one year or less, (iv) to not restate contracts that begin and end within the same annual reporting period, (v) to use the transaction price at the completion of the contract to retrospectively apply the new guidance, and (vi) to not disclose the remaining performance obligations for the reporting periods presented before the date of initial application. The most significant impact to the Company of the adoption of Topic 606 relates to the deferred recognition of revenues and expenses to fulfill contracts with customers until data recording has begun. |
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, net of actual forfeitures, as operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. |
Foreign Currency Translation | Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The functional currency of the Company’s foreign subsidiaries is generally the local currency. Any transactions denominated in a currency other than the functional currency are remeasured with the resulting unrealized gain or loss recognized in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). All assets and liabilities in the functional currency are then translated into U.S. Dollars at the exchange rate on the balance sheet date. Income and expenses are translated using the exchange rate applicable to each transaction. Equity transactions are translated using historical exchange rates. Adjustments resulting from translation are recorded as a separate component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Realized foreign currency transaction gains (losses) are included in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). |
Income Taxes | Income Taxes The Company accounts for income taxes by recognizing amounts of taxes payable or refundable for the current year, and by using an asset and liability approach in recognizing the amount of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Management determines deferred taxes by identifying the types and amounts of existing temporary differences, measuring the total deferred tax asset or liability using the applicable tax rate in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates of deferred tax assets and liabilities is recognized in income in the year of an enacted rate change. The deferred tax asset is reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management’s methodology for recording income taxes requires judgment regarding assumptions and the use of estimates, including determining the annual effective tax rate and the valuation of deferred tax assets, which can create variances between actual results and estimates and could have a material impact on the Company’s provision or benefit for income taxes. Due to recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the Consolidated Statements of Operations and Comprehensive Loss. The Company’s effective tax rates differ from the statutory federal rate of 21% for certain items such as state and local taxes, valuation allowances, non-deductible expenses and discrete items. |
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. |
Reclassifications | Reclassifications Certain reclassifications have been made to the year ended December 31, 2017 consolidated financial statements to conform to the 2019 presentation. These reclassifications had no impact on the |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment (in thousands), together with the related estimated useful lives at December 31, 2019 and 2018, were as follows: December 31, 2019 2018 Useful Lives Land, building and other $ $ 3 to 40 years Recording equipment 5 to 10 years Vibrator energy sources 5 to 15 years Vehicles 1.5 to 10 years Less accumulated depreciation Property and equipment, net $ $ |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Consolidated Financial Statement Information | |
Schedule of other current liabilities | Other current liabilities (in thousands) consist of the following at December 31, 2019 and 2018: December 31, 2019 2018 Accrued self-insurance reserves $ $ Other accrued expenses and current liabilities Other current liabilities $ $ |
Schedule of operating revenues disaggregated by geographic region | The following table presents the Company’s operating revenues (unaudited and in thousands) disaggregated by geographic region: Year Ended December 31, 2019 2018 2017 Operating Revenues United States $ $ $ Canada Total $ $ $ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Schedule of aggregate principal amount of outstanding notes payable and the interest rates | The Company’s aggregate principal amount (in thousands) of outstanding notes payable and the interest rates and monthly payments as of December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Notes payable to commercial banks Aggregate principal amount outstanding $ — $ Interest rate — December 31, 2019 December 31, 2018 Notes payable to finance company for insurance Aggregate principal amount outstanding $ $ Interest rate 4.05% - 4.99% |
Schedule of future minimum lease payments | The Company’s aggregate maturities of finance leases (in thousands) at December 31, 2019 are as follows: January 2020 - December 2020 $ January 2021 - December 2021 January 2022 - December 2022 January 2023 - December 2023 Finance lease obligations $ |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of expense, cash flow information and balance sheet information related to operating and finance leases | The components of lease cost (in thousands) for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Finance lease cost Amortization of right-of-use assets $ $ $ Interest on lease liabilities Total finance lease cost Operating lease cost Short-term lease cost — — — Total lease cost $ $ $ Supplemental cash flow information related to leases (in thousands) for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ $ $ Operating cash flows from finance leases $ $ $ Financing cash flows from finance leases $ $ $ Right-of-use assets obtained in exchange for lease obligations Operating leases $ $ — $ — Finance leases $ $ — $ — Supplemental balance sheet information related to leases (in thousands) as of December 31, 2019 and 2018 was as follows: December 31, 2019 2018 Operating leases Operating lease right-of-use assets $ $ — Operating lease liabilities - current $ $ — Operating lease liabilities - long-term — Total operating lease liabilities $ $ — Finance leases Property and equipment, at cost $ $ Accumulated depreciation Property and equipment, net $ $ Finance lease liabilities - current $ $ Finance lease liabilities - long-term Total finance lease liabilities $ $ Weighted average remaining lease term Operating leases 6.3 years 7.3 years Finance leases 0.8 years 1.8 years Weighted average discount rate Operating leases — Finance leases |
Schedule of maturities of lease liabilities | Maturities of lease liabilities (in thousands) at December 31, 2019 are as follows: Operating Leases Finance Leases January 2020 - December 2020 $ $ January 2021 - December 2021 January 2022 - December 2022 January 2023 - December 2023 January 2024 - December 2024 — Thereafter — Total payments under lease agreements Less imputed interest Total lease liabilities $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Summary of stock-based compensation expense | Year Ended December 31, 2019 2018 2017 Restricted stock awards $ $ $ Restricted stock unit awards Common stock awards Total compensation expense $ $ $ |
Summary of Company's employee stock options and activity | Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Balance as of December 31, 2018 87,497 $ 11.23 Forfeited — $ — Expired (87,497) $ 11.23 Balance as of December 31, 2019 — $ — — Exercisable as of December 31, 2019 — $ — — |
Summary of the Company's nonvested non-participating restricted stock awards | Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 65,974 $ 3.65 Vested (65,974) $ 3.65 Nonvested as of December 31, 2019 — $ — |
Summary of the Company's nonvested restricted stock unit awards | Number of Restricted Stock Unit Awards Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 627,085 $ 5.03 Granted — $ — Vested (197,485) $ 3.74 Forfeited (19,500) $ 5.41 Nonvested as of December 31, 2019 410,100 $ 5.64 |
Summary of common shares with immediate vesting granted to outside directors and employees | Number of Common Stock Awards Weighted Average Grant Date Fair Value Year ended December 31, 2019 119,556 $ 2.48 Year ended December 31, 2018 59,284 $ 5.59 Year ended December 31, 2017 67,498 $ 4.74 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of components of loss before income taxes | The Company’s components of loss before income tax (in thousands) are as follows: Year Ended December 31, 2019 2018 2017 Domestic $ $ $ Foreign Loss before income tax $ $ $ |
Schedule of components of income tax benefit | The Company’s components of income tax benefit (in thousands) are as follows: Year Ended December 31, 2019 2018 2017 Current federal benefit $ $ $ Current state (expense) benefit Current foreign benefit — — Deferred federal expense Deferred state benefit Deferred foreign benefit (expense) Income tax benefit $ $ $ |
Schedule of the difference between the income tax provision and the amount computed by applying the statutory federal income tax rate to losses before income taxes | The income tax provision (in thousands) differs from the amount computed by applying the statutory federal income tax rate to loss before income tax as follows: Year Ended December 31, 2019 2018 2017 Tax benefit computed at statutory rate of 21% and 35% (1) $ $ $ Change in valuation allowance State income tax benefit, net of federal tax Foreign loss Tax reform impact to deferred tax balances (2) — — Other Income tax benefit $ $ $ (1) Statutory rate of 21% for years ended December 31, 2019 and 2018 and 35% for year ended December 31, 2017. (2) Due to the Tax Cuts and Jobs Act enacted on December 22, 2017, the Company’s domestic deferred tax assets and liabilities were remeasured from 35% to 21% as of December 31, 2017. The change in tax rate resulted in a decrease to the gross domestic deferred tax asset which is offset by a corresponding decrease to the valuation allowance. |
Schedule of the principal components of the Company's net deferred tax (liabilities) assets | The principal components of the Company’s net deferred tax assets (liabilities) (in thousands) are as follows: December 31, 2019 2018 Deferred tax assets: Federal tax net operating loss ("NOL") carryforward $ $ Foreign tax NOL carryforward State tax NOL carryforward Other comprehensive income Deferred revenue Restricted stock and restricted stock unit awards Foreign deferred taxes Right-of-use assets — Canadian start-up costs Self-insurance Workers’ compensation Alternative Minimum Tax ("AMT") credit carryforward Other Gross deferred tax assets Less valuation allowances Net deferred tax assets Deferred tax liabilities: Property and equipment Net deferred tax assets (liabilities) $ $ Domestic deferred tax assets $ $ Foreign deferred tax liabilities — Net deferred tax assets (liabilities) $ $ |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Loss per Share | |
Schedule of computation of basic and diluted income (loss) per share | The computation of basic and diluted loss per share (in thousands, except share and per share data) is as follows : Year Ended December 31, 2019 2018 2017 Net loss $ (15,213) $ (24,407) $ (31,790) Weighted average common shares outstanding Basic 23,179,257 22,912,217 22,779,377 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — — Diluted 23,179,257 22,912,217 22,779,377 Basic loss per share of common stock $ (0.66) $ (1.07) $ (1.40) Diluted loss per share of common stock $ (0.66) $ (1.07) $ (1.40) |
Schedule of weighted average numbers of stock options, restricted stock unit awards, and restricted stock awards that have been excluded from the calculation of diluted income (loss) per share of common stock | Year Ended December 31, 2019 2018 2017 Stock options 50,580 240,700 355,264 Restricted stock units 456,817 552,458 348,826 Restricted stock awards 8,133 67,052 76,960 Total 515,530 860,210 781,050 |
Major Clients (Tables)
Major Clients (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Major Clients | |
Schedule of sales to major clients, as a percentage of operating revenues | Year Ended December 31, 2019 2018 2017 A — — B — — C — D — — E — F — — |
Quarterly Consolidated Financ_2
Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Consolidated Financial Data (Unaudited) | |
Summary of quarterly consolidated financial data (unaudited) | Quarter Ended March 31, June 30, September 30, December 31, Year ended December 31, 2019: Operating revenues $ $ $ $ (Loss) income from operations $ $ $ $ Net (loss) income $ $ $ $ Basic (loss) income per share of common stock $ (0.01) $ (0.49) $ 0.09 $ (0.25) Diluted (loss) income per share of common stock $ (0.01) $ (0.49) $ 0.09 $ (0.25) Year ended December 31, 2018: Operating revenues $ $ $ $ Loss from operations $ $ $ $ Net loss $ $ $ $ Basic loss per share of common stock $ (0.07) $ (0.25) $ (0.23) $ (0.51) Diluted loss per share of common stock $ (0.07) $ (0.25) $ (0.23) $ (0.51) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Jan. 01, 2019USD ($) | Jan. 01, 2018 | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Number of states in which the Company operates | item | 48 | ||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 | ||
ROU asset | 6,605,000 | ||||
Operating lease liabilities | 7,140,000 | ||||
Lease, Practical Expedients, Package [true false] | true | ||||
Lease, Practical Expedient, Use of Hindsight [true false] | false | ||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||
Impairment of intangibles | $ 0 | $ 0 | $ 0 | ||
Maximum original expected duration of cancelable service contracts | 1 year | ||||
Revenue, Practical Expedient, Financing Component [true false] | true | ||||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | ||||
Revenue, Practical Expedient, Initial Application and Transition, Completed Contract, Same Reporting Period [true false] | true | ||||
Revenue, Practical Expedient, Initial Application and Transition, Completed Contract, Use of Transaction Price at Contract Completion Date [true false] | true | ||||
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true | ||||
Statutory federal rate (as a percent) | 21.00% | 21.00% | 35.00% | ||
Minimum | |||||
Renewal terms (in years) | 1 year | ||||
Maximum | |||||
Renewal terms (in years) | 10 years | ||||
ASU 2016-02 | Adjustment | |||||
ROU asset | $ 7,769,000 | ||||
Operating lease liabilities | 8,252,000 | ||||
ASU 2016-02 | Adjustment | Prepaid expenses and other current assets | |||||
Prepaid rent | 14,000 | ||||
ASU 2016-02 | Adjustment | Other accrued liabilities | |||||
Deferred rent | $ 497,000 |
Short-Term Investments (Details
Short-Term Investments (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Minimum | ||
Investments | ||
Maturity period of certificates of deposit | 3 months | 3 months |
Maximum | ||
Investments | ||
Maturity period of certificates of deposit | 1 year | 1 year |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | ||
Gross | $ 284,647,000 | $ 293,948,000 |
Less accumulated depreciation | (231,098,000) | (222,407,000) |
Property and equipment, net | 53,549,000 | 71,541,000 |
Land, building and other | ||
Property, Plant and Equipment | ||
Gross | $ 16,611,000 | $ 15,164,000 |
Land, building and other | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 3 years | 3 years |
Land, building and other | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 40 years | 40 years |
Recording equipment | ||
Property, Plant and Equipment | ||
Gross | $ 163,564,000 | $ 171,514,000 |
Recording equipment | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 5 years | 5 years |
Recording equipment | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 10 years | 10 years |
Vibrator energy sources | ||
Property, Plant and Equipment | ||
Gross | $ 78,626,000 | $ 79,168,000 |
Vibrator energy sources | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 5 years | 5 years |
Vibrator energy sources | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 15 years | 15 years |
Vehicles | ||
Property, Plant and Equipment | ||
Gross | $ 25,845,000 | $ 28,101,000 |
Vehicles | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 1 year 6 months | 1 year 6 months |
Vehicles | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment | 10 years | 10 years |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information - Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other current liabilities | ||
Accrued self-insurance reserves | $ 2,771 | $ 2,423 |
Other accrued expenses and current liabilities | 828 | 1,220 |
Total other current liabilities | $ 3,599 | $ 3,643 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Statement Information - Disaggregated Revenues (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Number of business segments | segment | 1 | ||||||||||
Operating revenues | $ 33,557,000 | $ 36,976,000 | $ 24,076,000 | $ 51,164,000 | $ 27,670,000 | $ 40,448,000 | $ 36,158,000 | $ 49,880,000 | $ 145,773,000 | $ 154,156,000 | $ 156,532,000 |
United States | |||||||||||
Operating revenues | 129,452,000 | 137,101,000 | 134,442,000 | ||||||||
Canada | |||||||||||
Operating revenues | $ 16,321,000 | $ 17,055,000 | $ 22,090,000 |
Supplemental Consolidated Fin_5
Supplemental Consolidated Financial Statement Information - Deferred Costs and Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Supplemental Consolidated Financial Statement Information | ||||
Deferred Costs | $ 2,525 | $ 6,994 | $ 6,994 | $ 2,991 |
Total deferred costs amortized | 38,468 | 36,615 | ||
Deferred revenue | 3,481 | 10,501 | $ 10,501 | $ 6,314 |
Revenue recognized that was included in deferred revenue balances at beginning of period | $ 10,501 | $ 5,945 |
Debt (Details)
Debt (Details) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)instrumentitem | Dec. 31, 2018USD ($) |
Debt Instruments | |||
Finance lease obligations | $ 2,412,000 | $ 5,125,000 | |
Restricted money market | $ 5,000,000 | ||
Dominion Revolving Credit Facility | |||
Debt Instruments | |||
Maximum borrowing capacity | $ 15,000,000 | ||
Percentage of maximum borrowing capacity on eligible accounts receivable | 80.00% | ||
Percentage of maximum borrowing capacity on deposit with lender | 100.00% | ||
Commitment fee (as a percent) | 0.10% | ||
Minimum tangible net worth | $ 75,000,000 | ||
Restricted money market | $ 5,000,000 | ||
Dominion Revolving Credit Facility | Minimum | |||
Debt Instruments | |||
Interest rate (as a percent) | 3.50% | ||
Dominion Revolving Credit Facility | Maximum | |||
Debt Instruments | |||
Interest rate (as a percent) | 6.00% | ||
Veritex Line of Credit | |||
Debt Instruments | |||
Amounts borrowed under Line of Credit | $ 0 | ||
Repayment of term loan | $ 4,355,665 | ||
Veritex Letters of Credit | |||
Debt Instruments | |||
Number of letters of credit | item | 2 | ||
First Veritex Letters of Credit | |||
Debt Instruments | |||
Amount of letter of credit | $ 1,767,000 | ||
Second Veritex Letters of Credit | |||
Debt Instruments | |||
Amount of letter of credit | $ 583,000 | ||
Notes payable to finance companies for insurance | |||
Debt Instruments | |||
Interest rate (as a percent) | 3.80% | ||
Number of notes payable | instrument | 2 | ||
Notes payable to finance companies for insurance | Minimum | |||
Debt Instruments | |||
Interest rate (as a percent) | 4.05% | ||
Notes payable to finance companies for insurance | Maximum | |||
Debt Instruments | |||
Interest rate (as a percent) | 4.99% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Aggregate maturities of finance leases | ||
January 2020 - December 2020 | $ 2,316,000 | |
January 2021 - December 2021 | 53,000 | |
January 2022 - December 2022 | 36,000 | |
January 2023 - December 2023 | 7,000 | |
Finance lease obligations | $ 2,412,000 | $ 5,125,000 |
Minimum | ||
Aggregate maturities of finance leases | ||
Interest rate on leases | 4.65% | |
Maximum | ||
Aggregate maturities of finance leases | ||
Interest rate on leases | 5.37% | |
Notes payable to commercial banks | ||
Notes payable | ||
Aggregate principal amount outstanding | $ 5,975,000 | |
Interest rate (as a percent) | 5.00% | |
Notes payable to finance companies for insurance | ||
Notes payable | ||
Aggregate principal amount outstanding | $ 1,746,000 | $ 1,680,000 |
Interest rate (as a percent) | 3.80% | |
Notes payable to finance companies for insurance | Minimum | ||
Notes payable | ||
Interest rate (as a percent) | 4.05% | |
Notes payable to finance companies for insurance | Maximum | ||
Notes payable | ||
Interest rate (as a percent) | 4.99% |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 1,424 | $ 1,429 | $ 506 |
Interest on lease liabilities | 177 | 303 | 123 |
Total finance lease cost | 1,601 | 1,732 | 629 |
Operating lease cost | 1,586 | 1,607 | 1,716 |
Total lease cost | $ 3,187 | $ 3,339 | $ 2,345 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases | |||
Operating cash flows from operating leases | $ (1,505) | $ (1,594) | $ (1,534) |
Operating cash flows from finance leases | (184) | (308) | (108) |
Financing cash flows from finance leases | (2,855) | $ (2,699) | (1,076) |
Right-of-use assets obtained in exchange for operating leases | 8,252 | ||
Right-of-use assets obtained in exchange for finance leases | $ 121 | $ 8,542 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Operating leases | ||
Operating lease right-of-use assets | $ 6,605,000 | |
Operating lease liabilities - current | 1,200,000 | |
Operating lease liabilities - long-term | 5,940,000 | |
Total operating lease liabilities | 7,140,000 | |
Finance leases | ||
Property and equipment, at cost | 8,663,000 | $ 8,542,000 |
Accumulated depreciation | (3,297,000) | (1,922,000) |
Property and equipment, net | 5,366,000 | 6,620,000 |
Finance lease liabilities - current | 2,316,000 | 2,830,000 |
Finance lease liabilities - long-term | 96,000 | 2,295,000 |
Finance lease obligations | $ 2,412,000 | $ 5,125,000 |
Weighted average remaining lease term: | ||
Operating leases | 6 years 3 months 18 days | 7 years 3 months 18 days |
Finance leases | 9 months 18 days | 1 year 9 months 18 days |
Weighted average discount rate: | ||
Operating leases | 5.04% | |
Finance leases | 4.67% | 4.65% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
January 2020 - December 2020 | $ 1,531,000 | |
January 2021 - December 2021 | 1,348,000 | |
January 2022 - December 2022 | 1,157,000 | |
January 2023 - December 2023 | 1,168,000 | |
January 2024 - December 2024 | 1,175,000 | |
Thereafter | 2,001,000 | |
Total payments under lease agreements | 8,380,000 | |
Less imputed interest | (1,240,000) | |
Total lease liabilities | 7,140,000 | |
Finance Leases | ||
January 2020 - December 2020 | 2,367,000 | |
January 2021 - December 2021 | 56,000 | |
January 2022 - December 2022 | 37,000 | |
January 2023 - December 2023 | 8,000 | |
Total payments under lease agreements | 2,468,000 | |
Less imputed interest | (56,000) | |
Total lease liabilities | $ 2,412,000 | $ 5,125,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | May 05, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Stock-Based Compensation Plans | ||||
Number of awards previously granted under prior plans remains outstanding | 0 | |||
Stock-based compensation expense | $ 1,205 | $ 1,368 | $ 976 | |
Restricted stock | ||||
Stock-Based Compensation Plans | ||||
Stock-based compensation expense | 893 | 915 | 495 | |
Restricted stock units | ||||
Stock-Based Compensation Plans | ||||
Stock-based compensation expense | 15 | 122 | 161 | |
Common stock awards | ||||
Stock-Based Compensation Plans | ||||
Stock-based compensation expense | $ 297 | $ 331 | $ 320 | |
The 2016 Plan | ||||
Stock-Based Compensation Plans | ||||
Number of shares authorized | 1,000,000 | |||
Shares available for future issuance | 330,861 | |||
Option expiration term | 10 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Stock Options | |||
Balance at the beginning of the period (in shares) | 87,497 | ||
Expired (in shares) | (87,497) | ||
Balance at the end of the period (in shares) | 87,497 | ||
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $ 11.23 | ||
Expired (in dollars per share) | $ 11.23 | ||
Balance at the end of the period (in dollars per share) | $ 11.23 | ||
Options granted (in shares) | 0 | 0 | 0 |
Options vested (in shares) | 0 | 0 | 0 |
Excess tax benefits from disqualifying dispositions | $ 0 | $ 0 | $ 0 |
Options exercised (in shares) | 0 | 0 | 0 |
Proceeds from exercise of stock options | $ 0 | $ 0 | $ 0 |
Stock options | |||
Weighted Average Exercise Price | |||
Unrecognized compensation expense related to share-based compensation plans | $ 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards, Restricted Stock Units and Common Stock Awards (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock | |||
Number of Restricted Share Awards | |||
Nonvested restricted shares outstanding, beginning balance (in shares) | 65,974 | ||
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | (65,974) | ||
Nonvested restricted shares outstanding, ending balance (in shares) | 65,974 | ||
Weighted Average Grant-Date Fair Value | |||
Nonvested restricted shares outstanding, beginning balance (in dollars per share) | $ 3.65 | ||
Vested (in dollars per share) | $ 3.65 | ||
Nonvested restricted shares outstanding, ending balance (in dollars per share) | $ 3.65 | ||
Additional disclosures | |||
Annual increment period | 3 years | ||
Unrecognized compensation cost | $ 0 | ||
Aggregate vesting date fair value of restricted awards | $ 255,000 | $ 48,000 | $ 84,000 |
Restricted stock | Minimum | |||
Additional disclosures | |||
Vesting period | 1 year | ||
Restricted stock | Maximum | |||
Additional disclosures | |||
Vesting period | 3 years | ||
Restricted stock units | |||
Number of Restricted Share Awards | |||
Nonvested restricted shares outstanding, beginning balance (in shares) | 627,085 | ||
Granted (in shares) | 268,000 | 238,350 | |
Vested (in shares) | (197,485) | ||
Forfeited (in shares) | (19,500) | ||
Nonvested restricted shares outstanding, ending balance (in shares) | 410,100 | 627,085 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested restricted shares outstanding, beginning balance (in dollars per share) | $ 5.03 | ||
Granted (in dollars per share) | $ 7.14 | $ 3.96 | |
Vested (in dollars per share) | 3.74 | ||
Forfeited (in dollars per share) | 5.41 | ||
Nonvested restricted shares outstanding, ending balance (in dollars per share) | $ 5.64 | $ 5.03 | |
Additional disclosures | |||
Annual increment period | 3 years | ||
Unrecognized compensation cost | $ 871,000 | ||
Period over which unrecognized compensation expense is expected to be recognized | 1 year | ||
Aggregate vesting date fair value of restricted awards | $ 710,000 | $ 273,000 | $ 422,000 |
Restricted stock units | Minimum | |||
Additional disclosures | |||
Vesting period | 1 year | ||
Restricted stock units | Maximum | |||
Additional disclosures | |||
Vesting period | 3 years | ||
Common stock awards | |||
Number of Restricted Share Awards | |||
Granted (in shares) | 119,556 | 59,284 | 67,498 |
Weighted Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 2.48 | $ 5.59 | $ 4.74 |
Dividends (Details)
Dividends (Details) | May 01, 2018 |
Dividends | |
Common stock dividend declared, percentage of shares outstanding | 5.00% |
Stock dividend, number of shares granted for each share outstanding | 0.05 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans | |||
Employer matching contribution, percent matched | 100.00% | 100.00% | 100.00% |
Percentage of employees gross pay that is matched | 6.00% | 6.00% | 6.00% |
Matching contribution to the plan | $ 1,340,000 | $ 1,505,000 | $ 1,480,000 |
Advertising Costs (Details)
Advertising Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Advertising Costs | |||
Advertising costs | $ 351,000 | $ 498,000 | $ 371,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss before income taxes | |||
Domestic | $ (14,097,000) | $ (20,577,000) | $ (32,238,000) |
Foreign | (1,355,000) | (4,628,000) | (4,866,000) |
Loss before income tax | (15,452,000) | (25,205,000) | (37,104,000) |
Income tax benefit | |||
Current federal benefit | 285,000 | 55,000 | 40,000 |
Current state (expense) benefit | (69,000) | (14,000) | 3,545,000 |
Current foreign benefit | 2,492,000 | ||
Deferred federal expense | (251,000) | (274,000) | (51,000) |
Deferred state benefit | 127,000 | 344,000 | 697,000 |
Deferred foreign benefit (expense) | 147,000 | 687,000 | (1,409,000) |
Total income tax benefit | $ 239,000 | $ 798,000 | $ 5,314,000 |
Reconciliation of income tax provision | |||
Federal income tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Tax benefit computed at statutory rate of 21% and 35% | $ 3,245,000 | $ 5,293,000 | $ 12,986,000 |
Change in valuation allowance | (5,744,000) | (5,811,000) | (4,747,000) |
State income tax benefit, net of federal tax | 46,000 | 260,000 | 2,757,000 |
Foreign loss | 2,827,000 | 1,319,000 | 1,593,000 |
Tax reform impact to deferred tax balances | (7,590,000) | ||
Other | (135,000) | (263,000) | 315,000 |
Total income tax benefit | 239,000 | 798,000 | $ 5,314,000 |
Deferred tax assets: | |||
Federal tax net operating loss ("NOL") carryforward | 25,921,000 | 24,848,000 | |
Foreign tax NOL carryforward | 6,418,000 | 5,298,000 | |
State tax NOL carryforward | 1,692,000 | 2,134,000 | |
Other comprehensive income | 379,000 | 490,000 | |
Deferred revenue | 351,000 | 697,000 | |
Restricted stock and restricted stock unit awards | 316,000 | 320,000 | |
Foreign deferred taxes | 242,000 | 466,000 | |
Right-of-use assets | 193,000 | ||
Canadian start-up costs | 122,000 | 137,000 | |
Self-insurance | 106,000 | 111,000 | |
Workers' compensation | 96,000 | 60,000 | |
Alternative Minimum Tax ("AMT") credit carryforward | 79,000 | 315,000 | |
Other | 90,000 | 92,000 | |
Gross deferred tax assets | 36,005,000 | 34,968,000 | |
Less valuation allowances | (28,299,000) | (22,806,000) | |
Net deferred tax assets | 7,706,000 | 12,162,000 | |
Deferred tax liabilities: | |||
Property and equipment | (7,649,000) | (12,003,000) | |
Net deferred tax assets (liabilities) | $ 57,000 | 159,000 | |
AMT credit refundable term (in years) | 3 years | ||
Canada | |||
Deferred tax liabilities: | |||
Net operating loss carry forwards | $ 24,683,000 | ||
Federal | |||
Deferred tax liabilities: | |||
Net deferred tax assets (liabilities) | 57,000 | 293,000 | |
Net operating loss carry forwards | 123,434,000 | ||
Tax benefits carry forward | 25,921,000 | ||
Foreign | |||
Deferred tax liabilities: | |||
Net deferred tax liabilities | $ (134,000) | ||
State | |||
Deferred tax liabilities: | |||
Tax benefits carry forward | $ 1,692,000 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Loss per Share | |||||||||||
Net loss | $ (5,828) | $ 1,998 | $ (11,246) | $ (137) | $ (11,816) | $ (5,171) | $ (5,711) | $ (1,709) | $ (15,213) | $ (24,407) | $ (31,790) |
Weighted average common shares outstanding: | |||||||||||
Basic | 23,179,257 | 22,912,217 | 22,779,377 | ||||||||
Diluted | 23,179,257 | 22,912,217 | 22,779,377 | ||||||||
Basic loss per share of common stock | $ (0.25) | $ 0.09 | $ (0.49) | $ (0.01) | $ (0.51) | $ (0.23) | $ (0.25) | $ (0.07) | $ (0.66) | $ (1.07) | $ (1.40) |
Diluted loss per share of common stock | $ (0.25) | $ 0.09 | $ (0.49) | $ (0.01) | $ (0.51) | $ (0.23) | $ (0.25) | $ (0.07) | $ (0.66) | $ (1.07) | $ (1.40) |
Net Loss per Share - Anti-Dilut
Net Loss per Share - Anti-Dilutive Awards Excluded from Calculation (Details) - shares | May 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||||
Common stock dividend declared, percentage of shares outstanding | 5.00% | |||
Weighted Average | ||||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||||
Weighted average number of securities excluded from calculation | 515,530 | 860,210 | 781,050 | |
Stock options | Weighted Average | ||||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||||
Weighted average number of securities excluded from calculation | 50,580 | 240,700 | 355,264 | |
Restricted stock units | Weighted Average | ||||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||||
Weighted average number of securities excluded from calculation | 456,817 | 552,458 | 348,826 | |
Restricted stock awards | Weighted Average | ||||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||||
Weighted average number of securities excluded from calculation | 8,133 | 67,052 | 76,960 |
Major Clients (Details)
Major Clients (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Number of business segments | 1 | ||
Customer concentration risk | Service Revenue | A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | ||
Customer concentration risk | Service Revenue | B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | ||
Customer concentration risk | Service Revenue | C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 15.00% | 10.00% | |
Customer concentration risk | Service Revenue | D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Customer concentration risk | Service Revenue | E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 22.00% | 17.00% | |
Customer concentration risk | Service Revenue | F | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% |
Areas of Operation (Details)
Areas of Operation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Areas of Operation | |||||||||||
Operating revenues | $ 33,557,000 | $ 36,976,000 | $ 24,076,000 | $ 51,164,000 | $ 27,670,000 | $ 40,448,000 | $ 36,158,000 | $ 49,880,000 | $ 145,773,000 | $ 154,156,000 | $ 156,532,000 |
Property and equipment | 53,549,000 | 71,541,000 | 53,549,000 | 71,541,000 | |||||||
Right-of-use assets | 6,605,000 | 6,605,000 | |||||||||
United States | |||||||||||
Areas of Operation | |||||||||||
Operating revenues | 129,452,000 | 137,101,000 | 134,442,000 | ||||||||
Property and equipment | 45,653,000 | 62,033,000 | 45,653,000 | 62,033,000 | |||||||
Right-of-use assets | 5,893,000 | 5,893,000 | |||||||||
Canada | |||||||||||
Areas of Operation | |||||||||||
Operating revenues | 16,321,000 | 17,055,000 | $ 22,090,000 | ||||||||
Property and equipment | 7,896,000 | $ 9,508,000 | 7,896,000 | $ 9,508,000 | |||||||
Right-of-use assets | $ 712,000 | $ 712,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 01, 2019defendant |
Weatherford Litigation | |
OPERATING COMMITMENTS AND CONTINGENCIES | |
Number of other parties named as defendants | 18 |
Commitments and Contingencies -
Commitments and Contingencies - Letters of Credit (Details) | Dec. 31, 2019USD ($)item |
Veritex Letters of Credit | |
Commitment and Contingencies | |
Number of letters of credit | item | 2 |
First Veritex Letters of Credit | |
Commitment and Contingencies | |
Amount of letter of credit | $ 1,767,000 |
Second Veritex Letters of Credit | |
Commitment and Contingencies | |
Amount of letter of credit | $ 583,000 |
Quarterly Consolidated Financ_3
Quarterly Consolidated Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Consolidated Financial Data (Unaudited) | |||||||||||
Operating revenues | $ 33,557,000 | $ 36,976,000 | $ 24,076,000 | $ 51,164,000 | $ 27,670,000 | $ 40,448,000 | $ 36,158,000 | $ 49,880,000 | $ 145,773,000 | $ 154,156,000 | $ 156,532,000 |
(Loss) income from operations | (6,218,000) | 1,911,000 | (11,622,000) | (317,000) | (11,862,000) | (5,234,000) | (6,291,000) | (1,640,000) | (16,246,000) | (25,027,000) | (37,964,000) |
Net (loss) income | $ (5,828,000) | $ 1,998,000 | $ (11,246,000) | $ (137,000) | $ (11,816,000) | $ (5,171,000) | $ (5,711,000) | $ (1,709,000) | $ (15,213,000) | $ (24,407,000) | $ (31,790,000) |
Basic (loss) income per share of common stock | $ (0.25) | $ 0.09 | $ (0.49) | $ (0.01) | $ (0.51) | $ (0.23) | $ (0.25) | $ (0.07) | $ (0.66) | $ (1.07) | $ (1.40) |
Diluted (loss) income per share of common stock | $ (0.25) | $ 0.09 | $ (0.49) | $ (0.01) | $ (0.51) | $ (0.23) | $ (0.25) | $ (0.07) | $ (0.66) | $ (1.07) | $ (1.40) |