Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 16, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'FLOTEK INDUSTRIES INC/CN/ | ' |
Entity Central Index Key | '0000928054 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 53,938,945 |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $5,257 | $2,730 |
Restricted cash | 801 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $645 and $872 at September 30, 2014 and December 31, 2013, respectively | 69,253 | 65,016 |
Inventories, net | 81,439 | 63,132 |
Deferred tax assets, net | 2,840 | 2,522 |
Other current assets | 9,622 | 4,261 |
Total current assets | 169,212 | 137,661 |
Property and equipment, net | 83,270 | 79,114 |
Goodwill | 71,131 | 66,271 |
Deferred tax assets, net | 14,090 | 15,012 |
Other intangible assets, net | 74,715 | 77,523 |
TOTAL ASSETS | 412,418 | 375,581 |
Current liabilities: | ' | ' |
Accounts payable | 32,656 | 19,899 |
Accrued liabilities | 13,468 | 12,778 |
Income taxes payable | 1,018 | 3,361 |
Interest payable | 76 | 111 |
Current portion of long-term debt | 11,367 | 26,415 |
Total current liabilities | 58,585 | 62,564 |
Long-term debt, less current portion | 30,184 | 35,690 |
Deferred tax liabilities, net | 26,048 | 27,575 |
Total liabilities | 114,817 | 125,829 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Cumulative convertible preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value, 80,000,000 shares authorized; 60,487,085 shares issued and 53,938,945 shares outstanding at September 30, 2014; 58,265,911 shares issued and 51,804,078 shares outstanding at December 31, 2013 | 6 | 6 |
Additional paid-in capital | 283,571 | 266,122 |
Accumulated other comprehensive income (loss) | -397 | -359 |
Retained earnings (accumulated deficit) | 36,489 | -841 |
Treasury stock, at cost; 5,699,845 and 5,394,178 shares at September 30, 2014 and December 31, 2013, respectively | -22,419 | -15,176 |
Flotek stockholders’ equity | 297,250 | 249,752 |
Noncontrolling interest | 351 | 0 |
Total equity | 297,601 | 249,752 |
TOTAL LIABILITIES AND EQUITY | $412,418 | $375,581 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $645 | $872 |
Cumulative convertible preferred stock, at par value | $0.00 | $0.00 |
Cumulative convertible preferred stock, shares authorized | 100,000 | 100,000 |
Cumulative convertible preferred stock, shares issued | 0 | 0 |
Cumulative convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 60,487,085 | 58,265,911 |
Common stock, shares outstanding | 53,938,945 | 51,804,078 |
Treasury stock, shares | 5,699,845 | 5,394,178 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $116,761 | $98,388 | $324,653 | $270,217 |
Cost of revenue | 70,683 | 60,886 | 192,585 | 162,491 |
Gross margin | 46,078 | 37,502 | 132,068 | 107,726 |
Expenses: | ' | ' | ' | ' |
Selling, general and administrative | 21,499 | 19,542 | 63,924 | 58,640 |
Depreciation and amortization | 2,439 | 2,038 | 7,225 | 5,231 |
Research and development | 1,293 | 835 | 3,599 | 2,689 |
Total expenses | 25,231 | 22,415 | 74,748 | 66,560 |
Income from operations | 20,847 | 15,087 | 57,320 | 41,166 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -424 | -530 | -1,259 | -1,495 |
Other income (expense), net | -87 | 59 | -306 | 117 |
Total other income (expense) | -511 | -471 | -1,565 | -1,378 |
Income before income taxes | 20,336 | 14,616 | 55,755 | 39,788 |
Income tax expense | -6,064 | -5,648 | -18,425 | -14,615 |
Net income | $14,272 | $8,968 | $37,330 | $25,173 |
Earnings per common share: | ' | ' | ' | ' |
Basic earnings per common share | $0.26 | $0.17 | $0.69 | $0.50 |
Diluted earnings per common share | $0.26 | $0.16 | $0.67 | $0.47 |
Weighted average common shares: | ' | ' | ' | ' |
Weighted average common shares used in computing basic earnings per common share | 54,789 | 52,742 | 54,464 | 50,819 |
Weighted average common shares used in computing diluted earnings per common share | 55,690 | 55,317 | 55,536 | 53,407 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $14,272 | $8,968 | $37,330 | $25,173 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | -67 | -22 | -38 | -179 |
Unrealized gain on investments available for sale | 0 | 5 | 0 | 18 |
Comprehensive income | $14,205 | $8,951 | $37,292 | $25,012 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $37,330 | $25,173 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 13,276 | 10,948 |
Amortization of deferred financing costs | 257 | 65 |
Accretion of debt discount | 0 | 55 |
Gain on sale of assets | -2,552 | -3,452 |
Stock compensation expense | 7,429 | 8,697 |
Deferred income tax provision (benefit) | 237 | -315 |
Excess tax benefit related to share-based awards | -3,425 | -835 |
Changes in current assets and liabilities: | ' | ' |
Restricted cash | -450 | 150 |
Accounts receivable, net | -3,896 | -6,521 |
Inventories | -18,035 | -2,055 |
Other current assets | -4,957 | 259 |
Accounts payable | 12,617 | -17,341 |
Accrued liabilities | 1,019 | 4,931 |
Income taxes payable | 1,082 | 1,585 |
Interest payable | -35 | 16 |
Net cash provided by operating activities | 39,897 | 21,360 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -13,494 | -9,985 |
Proceeds from sale of assets | 3,322 | 4,595 |
Payments for acquisitions, net of cash acquired | -5,704 | -53,396 |
Purchase of patents and other intangible assets | -780 | 0 |
Net cash used in investing activities | -16,656 | -58,786 |
Cash flows from financing activities: | ' | ' |
Repayments of indebtedness | -8,506 | -9,777 |
Proceeds of borrowings | 0 | 26,190 |
Borrowings on revolving credit facility | 305,750 | 231,696 |
Repayments on revolving credit facility | -317,798 | -204,319 |
Debt issuance costs | -256 | -1,207 |
Issuance costs of preferred stock and detachable warrants | 0 | -200 |
Excess tax benefit related to share-based awards | 3,425 | 835 |
Acquisition of treasury stock related to share-based awards | -6,060 | -5,325 |
Proceeds from sale of common stock | 763 | 567 |
Proceeds from exercise of stock options | 461 | 491 |
Proceeds from exercise of stock warrants | 1,545 | 323 |
Net cash (used in) provided by financing activities | -20,676 | 39,274 |
Effect of changes in exchange rates on cash and cash equivalents | -38 | -179 |
Net increase in cash and cash equivalents | 2,527 | 1,669 |
Cash and cash equivalents at the beginning of period | 2,730 | 2,700 |
Cash and cash equivalents at the end of period | $5,257 | $4,369 |
Unaudited_Consolidated_Stateme3
Unaudited Consolidated Statement of Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Noncontrolling Interests | EOGA [Member] | EOGA [Member] | EOGA [Member] | SiteLark [Member] | SiteLark [Member] | SiteLark [Member] |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common Stock | Additional Paid-in Capital | USD ($) | Common Stock | Additional Paid-in Capital |
USD ($) | USD ($) | ||||||||||||
Beginning balance at Dec. 31, 2013 | $249,752 | $6 | ($15,176) | $266,122 | ($359) | ($841) | $0 | ' | ' | ' | ' | ' | ' |
Beginning balance, treasury shares at Dec. 31, 2013 | 5,394,178 | ' | 5,394,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance, shares at Dec. 31, 2013 | ' | 58,266,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 37,330 | ' | ' | ' | ' | 37,330 | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income | -38 | ' | ' | ' | -38 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued under employee stock purchase plan | 763 | ' | ' | 763 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in payment of stock purchase plan, shares | ' | ' | -27,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in payment of accrued liability | 600 | ' | ' | 600 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in payment of accrued liability, shares | ' | 27,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock warrants exercised | 1,545 | ' | ' | 1,545 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock warrants exercised, shares | ' | 1,277,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | 1,644 | ' | ' | 1,644 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised, shares | ' | 302,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock surrendered for exercise of stock options | -1,183 | ' | -1,183 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock surrendered for exercise of stock options, shares | ' | ' | 46,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock granted | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock granted, shares | ' | 516,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock forfeited, shares | ' | ' | 55,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury stock acquired related to tax withholding for share-based awards | -6,060 | ' | -6,060 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury stock acquired related to tax withholding for share-based awards, shares | ' | ' | 232,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit related to share-based awards | 3,425 | ' | ' | 3,425 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | 7,429 | ' | ' | 7,429 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Flotek Gulf, LLC and Flotek Gulf Research, LLC | 351 | ' | ' | ' | ' | ' | 351 | ' | ' | ' | ' | ' | ' |
Stock issued in acquisition | 2,043 | ' | ' | ' | ' | ' | ' | 1,894 | ' | 1,894 | 149 | ' | 149 |
Stock issued in acquisition, shares | ' | ' | ' | ' | ' | ' | ' | ' | 94,000 | ' | ' | 5,000 | ' |
Ending balance at Sep. 30, 2014 | $297,601 | $6 | ($22,419) | $283,571 | ($397) | $36,489 | $351 | ' | ' | ' | ' | ' | ' |
Ending balance, treasury shares at Sep. 30, 2014 | 5,699,845 | ' | 5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, shares at Sep. 30, 2014 | ' | 60,487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Significant Accounting Policies | ' |
Organization and Significant Accounting Policies | |
Organization and Nature of Operations | |
Flotek Industries, Inc. (“Flotek” or the “Company”) is a technology-driven supplier of energy chemicals and consumer and industrial chemicals and is a global developer and supplier of drilling, completion and production technologies and related services. | |
Flotek's strategic focus, and that of its diversified wholly-owned subsidiaries (collectively referred to as the “Company”), includes energy-related chemical technologies, drilling technologies, production technologies (previously referred to as artificial lift technologies), and consumer and industrial chemical technologies. Within energy technologies, the Company provides oilfield specialty chemicals and logistics, down-hole drilling tools and production-related tools used in the energy and mining industries. Flotek's products and services enable customers to drill wells more efficiently, to realize increased production from both new and existing wells and to decrease future well operating costs. Major customers include leading oilfield service providers, pressure-pumping service companies, onshore and offshore drilling contractors, and major and independent oil and gas exploration and production companies. Within consumer and industrial chemical technologies, the Company provides products for the flavor and fragrance industry and the industrial chemical industry. Major customers include food and beverage companies, fragrance companies, and companies providing household and industrial cleaning products. | |
The Company is headquartered in Houston, Texas, with operating locations in Florida, Louisiana, New Mexico, North Dakota, Oklahoma, Colorado, Pennsylvania, Texas, Utah, Wyoming, the Netherlands, and the Middle East. Flotek’s products are marketed both domestically and internationally, with international presence and/or representation in over 20 countries. | |
Basis of Presentation | |
The accompanying Unaudited Consolidated Financial Statements and accompanying footnotes (collectively the “Financial Statements”) reflect all adjustments, in the opinion of management, necessary for fair presentation of the financial condition and results of operations for the periods presented. All such adjustments are normal and recurring in nature. The Financial Statements, including selected notes, have been prepared in accordance with applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting and do not include all information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for comprehensive financial statement reporting. These interim Financial Statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “Annual Report”). A copy of the Annual Report is available on the SEC’s website, www.sec.gov, under the Company’s ticker symbol (“FTK”) or on Flotek’s website, www.flotekind.com. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
Omani Entities | |
In November 2013, the Company signed shareholder agreements with Tasneea Oil and Gas Technologies, LLC (“Tasneea”), an Omani Limited Liability Company, to form Omani based Flotek Gulf, LLC (“Flotek Gulf”) and Flotek Gulf Research, LLC (“Flotek Gulf Research”). Flotek will own 55% of the outstanding shares and Tasneea will own 45% of the outstanding shares of both Flotek Gulf and Flotek Gulf Research. During September 2014, Flotek and Tasneea transferred initial capital of $0.4 million to form Flotek Gulf and $0.4 million to form Flotek Gulf Research. At September 30, 2014, the total initial capital transfers of $0.8 million are reported as restricted cash. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassifications did not impact net income. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
(a) Application of New Accounting Standards | |
Effective January 1, 2014, the Company adopted the accounting guidance in Accounting Standards Update ("ASU") No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which provides guidance for reporting unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. Implementation of this standard did not have a material effect on the consolidated financial statements. | |
(b) New Accounting Requirements and Disclosures | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The ASU is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the potential impacts of the new standard on its existing stock-based compensation plans. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. | |
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued operations. The ASU will also require entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The pronouncement is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) of components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The Company is currently evaluating this guidance and does not expect that adoption will have a material effect on the consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
On January 1, 2014, the Company acquired 100% of the membership interests in Eclipse IOR Services, LLC ("EOGA"), a leading Enhanced Oil Recovery ("EOR") design and injection firm, for $6.4 million in cash consideration and 94,354 shares of the Company's Common Stock. EOGA’s enhanced oil recovery processes and its use of polymers to improve the performance of EOR projects has been combined with the Company’s existing EOR products and services. | |
On April 1, 2014, the Company acquired 100% of the membership interests in SiteLark, LLC ("SiteLark") for $0.4 million and 5,327 shares of the Company's common stock. SiteLark provides reservoir engineering and modeling services for a variety of hydrocarbon applications. Its services include proprietary software which assists engineers with reservoir simulation, reservoir engineering and waterflood optimization. | |
As discussed in more detail in the Company's 2013 Annual Report, the Company acquired Florida Chemical Company, Inc. ("Florida Chemical") on May 10, 2013 for a total purchase price of $106.4 million. Florida Chemical is one of the world's largest processors of citrus oils and a pioneer in solvent, chemical synthesis, and flavor and fragrance applications from citrus oils. Florida Chemical has been an innovator in creating high performance, bio-based products for a variety of industries, including applications in the oil and gas industry. This acquisition brings a portfolio of high performance renewable and sustainable chemistries that perform well in the oil and gas industry as well as non-energy related markets. This acquisition expands the Company's business into consumer and industrial chemical technologies which provide products for the flavor and fragrance industry and the specialty chemical industry. These technologies are used by food and beverage companies, fragrance companies, and companies providing household and industrial cleaning products. | |
During the three months ended September 30, 2014, the Company identified and recorded a final adjustment related to the acquisition of Florida Chemical. Current deferred tax assets were increased by $1.2 million with a corresponding decrease to goodwill within the consumer and industrial chemical technologies reporting unit. This final adjustment was not significant relative to the total consideration paid for Florida Chemical and, therefore, the final adjustment has not been retrospectively applied to the Company's balance sheet as of December 31, 2013. This adjustment, if recorded in 2013, would have had no impact on the 2013 consolidated statements of operations and cash flows. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ||||||||
Supplemental cash flow information is as follows (in thousands): | ||||||||
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
Supplemental non-cash investing and financing activities: | ||||||||
Value of common stock issued in acquisitions | $ | 2,043 | $ | 52,711 | ||||
Final Florida Chemical acquisition adjustment | 1,162 | — | ||||||
Value of common stock issued in payment of accrued liability | 600 | — | ||||||
Equipment acquired through capital leases | — | 866 | ||||||
Exercise of stock options by common stock surrender | 1,183 | 2,979 | ||||||
Supplemental cash payment information: | ||||||||
Interest paid | $ | 1,038 | $ | 1,410 | ||||
Income taxes paid | 18,393 | 13,343 | ||||||
Revenue
Revenue | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Revenue [Abstract] | ' | |||||||||||||||
Revenue | ' | |||||||||||||||
Revenue | ||||||||||||||||
The Company differentiates revenue and cost of revenue based on whether the source of revenue is attributable to products, rentals or services. Revenue and cost of revenue by source are as follows (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Products | $ | 92,708 | $ | 76,376 | $ | 257,415 | $ | 204,229 | ||||||||
Rentals | 16,966 | 15,375 | 45,954 | 46,794 | ||||||||||||
Services | 7,087 | 6,637 | 21,284 | 19,194 | ||||||||||||
$ | 116,761 | $ | 98,388 | $ | 324,653 | $ | 270,217 | |||||||||
Cost of revenue: | ||||||||||||||||
Products | $ | 57,315 | $ | 50,367 | $ | 155,048 | $ | 131,875 | ||||||||
Rentals | 8,272 | 6,868 | 22,444 | 17,666 | ||||||||||||
Services | 3,074 | 1,610 | 9,042 | 7,179 | ||||||||||||
Depreciation | 2,022 | 2,041 | 6,051 | 5,771 | ||||||||||||
$ | 70,683 | $ | 60,886 | $ | 192,585 | $ | 162,491 | |||||||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are as follows (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 29,681 | $ | 13,953 | ||||
Work-in-process | 2,880 | 1,904 | ||||||
Finished goods | 51,026 | 50,019 | ||||||
Inventories | 83,587 | 65,876 | ||||||
Less reserve for excess and obsolete inventory | (2,148 | ) | (2,744 | ) | ||||
Inventories, net | $ | 81,439 | $ | 63,132 | ||||
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment are as follows (in thousands): | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Land | $ | 5,852 | $ | 5,088 | |||||
Buildings and leasehold improvements | 32,695 | 32,269 | |||||||
Machinery, equipment and rental tools | 78,839 | 71,073 | |||||||
Equipment in progress | 6,771 | 4,601 | |||||||
Furniture and fixtures | 2,499 | 2,400 | |||||||
Transportation equipment | 6,168 | 6,340 | |||||||
Computer equipment and software | 7,513 | 7,617 | |||||||
Property and equipment | 140,337 | 129,388 | |||||||
Less accumulated depreciation | (57,067 | ) | (50,274 | ) | |||||
Property and equipment, net | $ | 83,270 | $ | 79,114 | |||||
Depreciation expense, including expense recorded in cost of revenue, totaled $3.3 million and $3.0 million for the three months ended September 30, 2014 and 2013, respectively, and $9.7 million and $8.4 million for the nine months ended September 30, 2014 and 2013, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||
During the nine months ended September 30, 2014, the Company recognized $6.0 million of goodwill within the Energy Chemical Technologies reporting unit in connection with the acquisitions of EOGA and SiteLark. During the three months ended September 30, 2014, the Company recorded a final adjustment related to the acquisition of Florida Chemical (see Note 3). There were no impairments of goodwill recognized during the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Changes in the carrying value of goodwill for each reporting unit are as follows (in thousands): | ||||||||||||||||
Energy Chemical Technologies | Consumer and Industrial Chemical Technologies | Teledrift® | Total | |||||||||||||
Balance at December 31, 2013 | $ | 30,296 | $ | 20,642 | $ | 15,333 | $ | 66,271 | ||||||||
Final Florida Chemical acquisition | — | (1,162 | ) | — | (1,162 | ) | ||||||||||
adjustment | ||||||||||||||||
Addition upon acquisition of EOGA | 5,455 | — | — | 5,455 | ||||||||||||
Addition upon acquisition of SiteLark | 567 | — | — | 567 | ||||||||||||
Balance at September 30, 2014 | $ | 36,318 | $ | 19,480 | $ | 15,333 | $ | 71,131 | ||||||||
Finite lived intangible assets acquired are amortized on a straight-line basis over two to 20 years. Amortization of finite lived intangible assets acquired totaled $1.2 million and $1.3 million for the three months ended September 30, 2014 and 2013, respectively, and $3.6 million and $2.7 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Amortization of deferred financing costs was $0.1 million and $0.3 million for the three and nine months ended September 30, 2014, respectively. Amortization of deferred financing costs was not significant for the three and nine months ended September 30, 2013. |
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facility | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt and Credit Facility | ' | |||||||
Long-Term Debt and Credit Facility | ||||||||
Long-term debt is as follows (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Long-term debt: | ||||||||
Term loan | $ | 37,327 | $ | 45,833 | ||||
Borrowings under revolving credit facility | 4,224 | 16,272 | ||||||
Total long-term debt | 41,551 | 62,105 | ||||||
Less current portion of long-term debt | (11,367 | ) | (26,415 | ) | ||||
Long-term debt, less current portion | $ | 30,184 | $ | 35,690 | ||||
Credit Facility | ||||||||
On May 10, 2013, the Company and certain of its subsidiaries (the “Borrowers”) entered into an Amended and Restated Revolving Credit, Term Loan and Security Agreement (the “Credit Facility”) with PNC Bank, National Association (“PNC Bank”). The Company may borrow under the Credit Facility for working capital, permitted acquisitions, capital expenditures and other corporate purposes. Under terms of the Credit Facility, as amended on December 31, 2013, the Company (a) may borrow up to $75 million under a revolving credit facility and (b) has borrowed $50 million under a term loan. | ||||||||
The Credit Facility is secured by substantially all of the Company's domestic real and personal property, including accounts receivable, inventory, land, buildings, equipment and other intangible assets. The Credit Facility contains customary representations, warranties, and both affirmative and negative covenants, including a financial covenant to maintain a consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to debt ratio of 1.10 to 1.00, a financial covenant to maintain a ratio of funded debt to adjusted EBITDA of not greater than 4.0 to 1.0, and an annual limit on capital expenditures of approximately $36 million. The Credit Facility restricts the payment of cash dividends on common stock. In the event of default, PNC Bank may accelerate the maturity date of any outstanding amounts borrowed under the Credit Facility. | ||||||||
The Credit Facility includes a provision that 25% of EBITDA minus cash paid for taxes, dividends, debt payments and unfunded capital expenditures, not to exceed $3.0 million for any year, be paid within 60 days of the fiscal year end. For the year ended December 31, 2013, the excess cash flow exceeded $3.0 million. Consequently, the Company paid $3.0 million on its term loan balance to PNC Bank on March 3, 2014. This amount is classified as current debt at December 31, 2013. | ||||||||
Each of the Company’s domestic subsidiaries is fully obligated for Credit Facility indebtedness as a Borrower or as a guarantor. | ||||||||
(a) Revolving Credit Facility | ||||||||
Under the revolving credit facility, the Company may borrow up to $75 million through May 10, 2018. This includes a sublimit of $10 million that may be used for letters of credit. The revolving credit facility is secured by substantially all the Company's domestic accounts receivable and inventory. | ||||||||
At September 30, 2014, eligible accounts receivable and inventory securing the revolving credit facility provided availability of $74.8 million under the revolving credit facility. Available borrowing capacity, net of outstanding borrowings, was $70.6 million at September 30, 2014. | ||||||||
The interest rate on advances under the revolving credit facility varies based on the level of borrowing. Rates range (a) between PNC Bank's base lending rate plus 0.5% to 1.0% or (b) between the London Interbank Offered Rate (LIBOR) plus 1.5% to 2.0%. PNC Bank's base lending rate was 3.25% at September 30, 2014. The Company is required to pay a monthly facility fee of 0.25% on any unused amount under the commitment based on daily averages. At September 30, 2014, $4.2 million was outstanding under the revolving credit facility, with $0.2 million borrowed as base rate loans at an interest rate of 3.75% and $4.0 million borrowed as LIBOR loans at an interest rate of 1.66%. | ||||||||
Borrowing under the revolving credit agreement is classified as current debt as a result of the required lockbox arrangement and the subjective acceleration clause. | ||||||||
(b) Term Loan | ||||||||
The Company increased borrowing to $50 million under the term loan on May 10, 2013. Monthly principal payments of $0.6 million are required. The unpaid balance of the term loan is due May 10, 2018. Prepayments are permitted, and may be required in certain circumstances. Amounts repaid under the term loan may not be reborrowed. The term loan is secured by substantially all of the Company's domestic land, buildings, equipment and other intangible assets. | ||||||||
The interest rate on the term loan varies based on the level of borrowing under the revolving credit facility. Rates range (a) between PNC Bank's base lending rate plus 1.25% to 1.75% or (b) between LIBOR plus 2.25% to 2.75%. At September 30, 2014, $37.3 million was outstanding under the term loan, with $0.3 million borrowed as base rate loans at an interest rate of 4.50% and $37.0 million borrowed as LIBOR loans at an interest rate of 2.41%. | ||||||||
Convertible Notes | ||||||||
The Company’s convertible notes have consisted of Convertible Senior Unsecured Notes (“2008 Notes”) and Convertible Senior Secured Notes (“2010 Notes”). On February 15, 2013, the Company repurchased the remaining $5.2 million of outstanding 2008 Notes for cash equal to the original principal amount, plus accrued and unpaid interest. These 2008 Notes were either tendered by the holder pursuant to the Company's tender offer or were redeemed by the Company pursuant to provisions of the indenture for the 2008 Notes. Following this repurchase, the Company no longer has any outstanding convertible senior notes. | ||||||||
Share Lending Agreement | ||||||||
Concurrent with the offering of the 2008 Notes, the Company entered into a share lending agreement (the “Share Lending Agreement”) with Bear, Stearns International Limited which was subsequently acquired and became an indirect, wholly owned subsidiary of JPMorgan Chase & Company (the “Borrower”). In accordance with the Share Lending Agreement, the Company loaned 3.8 million shares of its common stock (the “Borrowed Shares”) to the Borrower for a period commencing February 11, 2008 and ending on the earlier of February 15, 2028 or the date the 2008 Notes were paid. The Borrower was permitted to use the Borrowed Shares only for the purpose of directly or indirectly facilitating the sale of the 2008 Notes and for the establishment of hedge positions by holders of the 2008 Notes. The Company did not require collateral to mitigate any inherent or associated risk of the Share Lending Agreement. | ||||||||
The Company did not receive any proceeds for the Borrowed Shares, but did receive a nominal loan fee of $0.0001 for each share loaned. The Borrower retained all proceeds from sales of Borrowed Shares pursuant to the Share Lending Agreement. Upon conversion or replacement of the 2008 Notes, the number of Borrowed Shares proportionate to the converted or repaid notes were to be returned to the Company. The Borrowed Shares were issued and outstanding for corporate law purposes. Accordingly, holders of Borrowed Shares possessed all of the rights of a holder of the Company’s outstanding shares, including the right to vote the shares on all matters submitted to a vote of stockholders and the right to receive any dividends or other distributions declared or paid on outstanding shares of common stock. Under the Share Lending Agreement, the Borrower agreed to pay to the Company, within one business day after a payment date, an amount equal to any cash dividends that the Company paid on the Borrowed Shares, and to pay or deliver to the Company, upon termination of the loan of Borrowed Shares, any other distribution, in liquidation or otherwise, that the Company made on the Borrowed Shares. | ||||||||
To the extent the Borrowed Shares loaned under the Share Lending Agreement were not sold or returned to the Company, the Borrower agreed to not vote any borrowed shares of which the Borrower was the owner of record. The Borrower also agreed, under the Share Lending Agreement, to not transfer or dispose of any borrowed shares unless such transfer or disposition was pursuant to a registration statement that was effective under the Securities Act of 1933, as amended. Investors that purchased shares from the Borrower, and all subsequent transferees of such purchasers, were entitled to the same voting rights, with respect to owned shares, as any other holder of common stock. | ||||||||
During 2011 and 2012, the Borrower returned 1,360,442 shares of the Company’s borrowed common stock. On January 22, 2013, the remaining 2,439,558 shares of the Company's common stock held by J.P. Morgan Markets Limited were returned to the Company. No consideration was paid by the Company for the return of the Borrowed Shares. The Share Lending Agreement has been terminated. | ||||||||
Shares that had been loaned under the Share Lending Agreement were not considered outstanding for the purpose of computing and reporting earnings per share. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income, adjusted for the effect of assumed conversion of convertible notes, by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive. | ||||||||||||||||
In connection with the sale of the 2008 Notes, the Company entered into a Share Lending Agreement for 3.8 million shares of the Company’s common stock (see Note 9). Contractual undertakings of the Borrower had the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of the Borrowed Shares, and all shares outstanding under the Share Lending Agreement were contractually obligated to be returned to the Company. As a result, shares loaned under the Share Lending Agreement were not considered outstanding for the purpose of computing and reporting earnings per share. The Share Lending Agreement was terminated on January 22, 2013 upon the return of all Borrowed Shares to the Company. | ||||||||||||||||
On February 15, 2013, the Company repurchased the remaining $5.2 million of outstanding 2008 Notes for cash. Following this repurchase, the Company no longer has any outstanding convertible senior notes. For the nine months ended September 30, 2013, the Company’s convertible notes were excluded from the calculation of diluted earnings per common share, as inclusion was anti-dilutive. In addition, for the three and nine months ended September 30, 2013, approximately 0.1 million stock options with an exercise price in excess of the average market price of the Company’s common stock were excluded from the calculation of diluted earnings per common share. | ||||||||||||||||
Basic and diluted earnings per common share are as follows (in thousands, except per share data): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income - Basic and Diluted | $ | 14,272 | $ | 8,968 | $ | 37,330 | $ | 25,173 | ||||||||
Weighted average common shares outstanding - Basic | 54,789 | 52,742 | 54,464 | 50,819 | ||||||||||||
Assumed conversions: | ||||||||||||||||
Incremental common shares from warrants | — | 1,365 | 162 | 1,404 | ||||||||||||
Incremental common shares from stock options | 867 | 1,134 | 901 | 1,143 | ||||||||||||
Incremental common shares from restricted stock units | 34 | 76 | 9 | 41 | ||||||||||||
Weighted average common shares outstanding - Diluted | 55,690 | 55,317 | 55,536 | 53,407 | ||||||||||||
Basic earnings per common share | $ | 0.26 | $ | 0.17 | $ | 0.69 | $ | 0.5 | ||||||||
Diluted earnings per common share | $ | 0.26 | $ | 0.16 | $ | 0.67 | $ | 0.47 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company categorizes financial assets and liabilities into the three levels of the fair value hierarchy. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value and bases categorization within the hierarchy on the lowest level of input that is available and significant to the fair value measurement. | ||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities; | |||||||||||||||
• | Level 2 — Observable inputs other than Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||||||||||||||
• | Level 3 — Significant unobservable inputs that are supported by little or no market activity or that are based on the reporting entity’s assumptions about the inputs. | |||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||||
The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these accounts. The Company had no cash equivalents at September 30, 2014 or December 31, 2013. | ||||||||||||||||
The carrying value and estimated fair value of the Company’s long-term debt are as follows (in thousands): | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Term loan | $ | 37,327 | $ | 37,327 | $ | 45,833 | $ | 45,833 | ||||||||
Borrowings under revolving credit facility | 4,224 | 4,224 | 16,272 | 16,272 | ||||||||||||
The carrying value of the term loan and borrowings under the revolving credit facility approximate their fair value because the interest rates are variable. | ||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||
The Company's non-financial assets, including property and equipment, goodwill and other intangible assets are measured at fair value on a non-recurring basis and are subject to fair value adjustment in certain circumstances. No impairment of any of these assets was recognized during the nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
At September 30, 2014 and December 31, 2013, no liabilities were required to be measured at fair value on a recurring basis. There were no transfers in or out of either Level 1 or Level 2 fair value measurements during the nine months ended September 30, 2014 and 2013 and the year ended December 31, 2013. During the nine months ended September 30, 2014 and 2013 and the year ended December 31, 2013, there were no transfers in or out of the Level 3 hierarchy. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The Company’s corporate organizational structure requires the filing of two separate consolidated U.S. Federal income tax returns. Taxable income of one group cannot be offset by tax attributes, including net operating losses, of the other group. | ||||||||||||
A reconciliation of the effective tax rate to the U.S. federal statutory tax rate is as follows: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Federal statutory tax rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||
State income taxes, net of federal benefit | 1.8 | 3.6 | 2.1 | 3.2 | ||||||||
Return to accrual adjustments | (4.9 | ) | 1.1 | (1.8 | ) | 0.4 | ||||||
Domestic production activities deduction | (1.9 | ) | (2.3 | ) | (2.4 | ) | (2.4 | ) | ||||
Other | (0.2 | ) | 1.2 | 0.1 | 0.5 | |||||||
Effective income tax rate | 29.8 | % | 38.6 | % | 33 | % | 36.7 | % | ||||
Fluctuations in effective tax rates were historically impacted by permanent tax differences with no associated income tax impact and existing deferred tax asset valuation allowances. The return to accrual adjustments for the three and nine months ended September 30, 2014 include the effect of a decrease in deferred tax liabilities related to a change in state tax apportionment. | ||||||||||||
Deferred taxes are presented in the balance sheets as follows (in thousands): | ||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||
Current deferred tax assets | $ | 2,840 | $ | 2,522 | ||||||||
Non-current deferred tax assets | 14,090 | 15,012 | ||||||||||
Non-current deferred tax liabilities | (26,048 | ) | (27,575 | ) | ||||||||
Net deferred tax assets (liabilities) | $ | (9,118 | ) | $ | (10,041 | ) | ||||||
During the three months ended September 30, 2014, the Company recorded a final adjustment related to the acquisition of Florida Chemical that increased current deferred tax assets by $1.2 million (see Note 3). |
Convertible_Preferred_Stock_an
Convertible Preferred Stock and Stock Warrants | 9 Months Ended |
Sep. 30, 2014 | |
Warrants and Rights Note Disclosure [Abstract] | ' |
Convertible Preferred Stock and Stock Warrants | ' |
Convertible Preferred Stock and Stock Warrants | |
In August 2009, the Company sold 16,000 units (the “Units”), consisting of preferred stock and warrants for $1,000 per Unit. Each Unit consisted of one share of Series A cumulative convertible preferred stock (“Convertible Preferred Stock”), detachable warrants to purchase up to 155 shares of the Company's common stock at an exercise price of $2.31 per share (“Exercisable Warrants”) and detachable contingent warrants to purchase up to 500 shares of the Company's common stock at an exercise price of $2.45 per share (“Contingent Warrants”). | |
Preferred Stock | |
Each share of Convertible Preferred Stock was convertible at any time, at the holder’s option, into 434.782 shares of the Company’s common stock. The conversion rate represented an equivalent conversion price of approximately $2.30 per share of common stock. | |
Each share of Convertible Preferred Stock had a liquidation preference of $1,000. Dividends accrued at a rate of 15% of the liquidation preference per year and accumulated, if not paid quarterly. Subsequent to February 11, 2010, the Company had the ability to convert the preferred shares into common shares if the closing price of the common stock met certain price criteria. In the event any Convertible Preferred Stock was converted, the Company was obligated to pay an amount, in cash or common stock, equal to eight quarterly dividend payments less any dividends previously paid. | |
In February 2011, the Company exercised its contractual right to mandatorily convert all outstanding shares of Convertible Preferred Stock into shares of common stock at the prevailing conversion rate of 434.782 shares of common stock for each share of preferred stock. Currently, the Company has no issued or outstanding shares of preferred stock. | |
Stock Warrants | |
Exercisable Warrants were exercisable upon issuance and expire August 12, 2014, if not exercised. Contingent Warrants became exercisable on November 9, 2009, and expire November 9, 2014, if not exercised. Prior to June 14, 2012, the warrants contained anti-dilution price protection in the event the Company issued shares of common stock or securities exercisable for, or convertible into, common stock at a price per share less than the warrants’ exercise price. In accordance with these contractual anti-dilution price adjustment provisions, the warrants were re-priced as a result of a payment of a portion of the initial and deferred commitment fees related to the Company’s term loan with common stock on March 31, 2010 and September 30, 2010. | |
Due to the anti-dilution price adjustment provisions established at the issuance date, the warrants were deemed to be a liability and were recorded at fair value at the date of issuance. The warrant liability was adjusted to fair value at the end of each reporting period through the statement of operations during the period the anti-dilution price adjustment provisions were in effect. On June 14, 2012, contractual provisions within the Company’s Exercisable and Contingent Warrant agreements were modified to eliminate the anti-dilution price adjustment provisions of the warrants and remove the cash settlement provisions in the event of a change of control. The amended warrants then qualified to be classified as equity. Accordingly, the Company revalued the warrants as of June 14, 2012, the date of contractual amendment. The change in fair value of the warrant liability compared to the fair value on December 31, 2011, $2.6 million, was recognized in income during 2012. The revalued warrant liability of $14.0 million was reclassified to additional-paid-in-capital on June 14, 2012. There were no longer fair value adjustments because the warrants continued to meet the criteria for equity classification. | |
The Company used the Black-Scholes option-pricing model to estimate the fair value of the warrant liability for each reporting period. On June 14, 2012, the date the warrants were amended, inputs into the fair value calculation included the actual remaining term of the warrants, a volatility rate of 58.1%, a risk-free rate of return of 0.36%, and an assumed dividend rate of zero. | |
On February 7, 2014, warrants were exercised to purchase 1,277,250 shares of the Company's common stock at $1.21 per share. The Company received cash proceeds of $1.5 million in connection with the warrants exercised. Following the exercise, the Company no longer had any outstanding warrants from its sale of preferred stock and warrants in August 2009. |
Business_Segment_Geographic_an
Business Segment, Geographic and Major Customer Information | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Business Segment, Geographic and Major Customer Information | ' | |||||||||||||||||||||||
Business Segment, Geographic and Major Customer Information | ||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||
Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-makers in deciding how to allocate resources and assess performance. The operations of the Company are categorized into four reportable segments: Energy Chemical Technologies, Consumer and Industrial Chemical Technologies, Drilling Technologies and Production Technologies. | ||||||||||||||||||||||||
• | Energy Chemical Technologies designs, develops, manufactures, packages and markets specialty chemicals used in oil and natural gas well drilling, cementing, completion, stimulation and production. In addition, the Company's chemistries are used in specialized enhanced and improved oil recovery markets. Activities in this segment also include construction and management of automated material handling facilities and management of loading facilities and blending operations for oilfield services companies. | |||||||||||||||||||||||
• | Consumer and Industrial Chemical Technologies designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and the specialty chemical industry. These technologies are used by beverage and food companies, fragrance companies, and companies providing household and industrial cleaning products. | |||||||||||||||||||||||
• | Drilling Technologies rents, sells, inspects, manufactures and markets down-hole drilling equipment used in energy, mining, water well and industrial drilling activities. | |||||||||||||||||||||||
• | Production Technologies assembles and markets production-related equipment, including the Petrovalve product line of rod pump components, electric submersible pumps, gas separators, valves and services that support natural gas and oil production activities. | |||||||||||||||||||||||
The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes, are not allocated to reportable segments. | ||||||||||||||||||||||||
Summarized financial information of the reportable segments is as follows (in thousands): | ||||||||||||||||||||||||
As of and for the three months ended September 30, | Energy Chemical Technologies | Consumer and Industrial Chemical Technologies | Drilling Technologies | Production Technologies | Corporate and | Total | ||||||||||||||||||
Other | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 68,181 | $ | 13,713 | $ | 29,920 | $ | 4,947 | $ | — | $ | 116,761 | ||||||||||||
Gross margin | 28,424 | 3,310 | 11,928 | 2,416 | — | 46,078 | ||||||||||||||||||
Income (loss) from operations | 19,903 | 1,758 | 5,557 | 1,583 | (7,954 | ) | 20,847 | |||||||||||||||||
Depreciation and amortization | 1,103 | 547 | 2,433 | 81 | 298 | 4,462 | ||||||||||||||||||
Total assets | 144,738 | 89,574 | 142,774 | 18,252 | 17,080 | 412,418 | ||||||||||||||||||
Capital expenditures | 2,580 | 7 | 818 | 141 | 703 | 4,249 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 51,670 | $ | 15,292 | $ | 27,569 | $ | 3,857 | $ | — | $ | 98,388 | ||||||||||||
Gross margin | 21,849 | 3,588 | 10,821 | 1,244 | — | 37,502 | ||||||||||||||||||
Income (loss) from operations | 16,247 | 2,301 | 4,309 | 769 | (8,539 | ) | 15,087 | |||||||||||||||||
Depreciation and amortization | 932 | 382 | 2,438 | 60 | 213 | 4,025 | ||||||||||||||||||
Total assets | 121,876 | 97,129 | 136,832 | 16,542 | 8,600 | 380,979 | ||||||||||||||||||
Capital expenditures | 161 | 165 | 1,596 | 225 | 328 | 2,475 | ||||||||||||||||||
As of and for the nine months ended September 30, | Energy Chemical Technologies | Consumer and Industrial Chemical Technologies | Drilling Technologies | Production Technologies | Corporate and | Total | ||||||||||||||||||
Other | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 193,148 | $ | 39,351 | $ | 82,061 | $ | 10,093 | $ | — | $ | 324,653 | ||||||||||||
Gross margin | 85,074 | 10,237 | 32,477 | 4,280 | — | 132,068 | ||||||||||||||||||
Income (loss) from operations | 60,690 | 5,064 | 13,073 | 1,925 | (23,432 | ) | 57,320 | |||||||||||||||||
Depreciation and amortization | 3,264 | 1,529 | 7,363 | 244 | 876 | 13,276 | ||||||||||||||||||
Total assets | 144,738 | 89,574 | 142,774 | 18,252 | 17,080 | 412,418 | ||||||||||||||||||
Capital expenditures | 5,383 | 37 | 6,139 | 252 | 1,683 | 13,494 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 144,029 | $ | 27,967 | $ | 86,268 | $ | 11,953 | $ | — | $ | 270,217 | ||||||||||||
Gross margin | 61,548 | 7,281 | 34,622 | 4,275 | — | 107,726 | ||||||||||||||||||
Income (loss) from operations | 45,300 | 4,648 | 15,510 | 2,712 | (27,004 | ) | 41,166 | |||||||||||||||||
Depreciation and amortization | 2,201 | 634 | 7,215 | 181 | 717 | 10,948 | ||||||||||||||||||
Total assets | 121,876 | 97,129 | 136,832 | 16,542 | 8,600 | 380,979 | ||||||||||||||||||
Capital expenditures | 3,077 | 165 | 4,066 | 1,669 | 1,008 | 9,985 | ||||||||||||||||||
Geographic Information | ||||||||||||||||||||||||
Revenue by country is based on the location where services are provided and products are used. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands): | ||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
U.S. | $ | 92,643 | $ | 84,640 | $ | 271,663 | $ | 234,151 | ||||||||||||||||
Other countries | 24,118 | 13,748 | 52,990 | 36,066 | ||||||||||||||||||||
Total | $ | 116,761 | $ | 98,388 | $ | 324,653 | $ | 270,217 | ||||||||||||||||
Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements. | ||||||||||||||||||||||||
Major Customers | ||||||||||||||||||||||||
One customer accounted for 12.7% and 15.5% of consolidated revenue for the three months ended September 30, 2014 and 2013, respectively, and 17.0% and 16.6% of consolidated revenue for the nine months ended September 30, 2014 and 2013, respectively. Over 93% of the revenue from this customer was for sales in the Energy Chemical Technologies segment. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
The Company is subject to routine litigation and other claims that arise in the normal course of business. Management is not aware of any pending or threatened lawsuits or proceedings that are expected to have a material effect on the Company’s financial position, results of operations or liquidity. | |
Representation Agreements | |
In February 2011, the Company entered into two separate representation agreements with Basin Supply Corporation (“Basin Supply”), a multinational, energy industry-focused supply chain management company, to market certain of the Company’s specialty chemicals and down-hole drilling products and services within various international markets, including the Middle East, Africa, Latin America and the former Soviet Union. Both agreements are effective through December 31, 2015. Under each agreement, Basin Supply is eligible to receive warrants to purchase Flotek common stock (at an exercise price of 125% of the price of Flotek's common stock on the grant date) upon exceeding contractually defined annual base and “stretch” sales targets. The number of warrants that could be issued under the terms of each of the agreements is 100,000 during 2014. | |
Concentrations and Credit Risk | |
The majority of the Company’s revenue is derived from the oil and gas industry. Customers include major oilfield services companies, major integrated oil and natural gas companies, independent oil and natural gas companies, pressure pumping service companies and state-owned national oil companies. This concentration of customers in one industry increases credit and business risks. | |
The Company is subject to concentrations of credit risk within trade accounts receivable as the Company does not generally require collateral as support for trade receivables. In addition, the majority of the Company’s cash is maintained at one major financial institution and balances often exceed insurable amounts. |
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying Unaudited Consolidated Financial Statements and accompanying footnotes (collectively the “Financial Statements”) reflect all adjustments, in the opinion of management, necessary for fair presentation of the financial condition and results of operations for the periods presented. All such adjustments are normal and recurring in nature. The Financial Statements, including selected notes, have been prepared in accordance with applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting and do not include all information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for comprehensive financial statement reporting. These interim Financial Statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “Annual Report”). A copy of the Annual Report is available on the SEC’s website, www.sec.gov, under the Company’s ticker symbol (“FTK”) or on Flotek’s website, www.flotekind.com. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassifications did not impact net income. | |
Application of New Accounting Standards | ' |
Application of New Accounting Standards | |
Effective January 1, 2014, the Company adopted the accounting guidance in Accounting Standards Update ("ASU") No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which provides guidance for reporting unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. Implementation of this standard did not have a material effect on the consolidated financial statements. | |
(b) New Accounting Requirements and Disclosures | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The ASU is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the potential impacts of the new standard on its existing stock-based compensation plans. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. | |
In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued operations. The ASU will also require entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The pronouncement is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) of components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The Company is currently evaluating this guidance and does not expect that adoption will have a material effect on the consolidated financial statements. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Components of supplemental cash flow information | ' | |||||||
Supplemental cash flow information is as follows (in thousands): | ||||||||
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
Supplemental non-cash investing and financing activities: | ||||||||
Value of common stock issued in acquisitions | $ | 2,043 | $ | 52,711 | ||||
Final Florida Chemical acquisition adjustment | 1,162 | — | ||||||
Value of common stock issued in payment of accrued liability | 600 | — | ||||||
Equipment acquired through capital leases | — | 866 | ||||||
Exercise of stock options by common stock surrender | 1,183 | 2,979 | ||||||
Supplemental cash payment information: | ||||||||
Interest paid | $ | 1,038 | $ | 1,410 | ||||
Income taxes paid | 18,393 | 13,343 | ||||||
Revenue_Tables
Revenue (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Revenue [Abstract] | ' | |||||||||||||||
Differentiation of revenue and cost of revenue | ' | |||||||||||||||
Revenue and cost of revenue by source are as follows (in thousands): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Products | $ | 92,708 | $ | 76,376 | $ | 257,415 | $ | 204,229 | ||||||||
Rentals | 16,966 | 15,375 | 45,954 | 46,794 | ||||||||||||
Services | 7,087 | 6,637 | 21,284 | 19,194 | ||||||||||||
$ | 116,761 | $ | 98,388 | $ | 324,653 | $ | 270,217 | |||||||||
Cost of revenue: | ||||||||||||||||
Products | $ | 57,315 | $ | 50,367 | $ | 155,048 | $ | 131,875 | ||||||||
Rentals | 8,272 | 6,868 | 22,444 | 17,666 | ||||||||||||
Services | 3,074 | 1,610 | 9,042 | 7,179 | ||||||||||||
Depreciation | 2,022 | 2,041 | 6,051 | 5,771 | ||||||||||||
$ | 70,683 | $ | 60,886 | $ | 192,585 | $ | 162,491 | |||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
Inventories are as follows (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 29,681 | $ | 13,953 | ||||
Work-in-process | 2,880 | 1,904 | ||||||
Finished goods | 51,026 | 50,019 | ||||||
Inventories | 83,587 | 65,876 | ||||||
Less reserve for excess and obsolete inventory | (2,148 | ) | (2,744 | ) | ||||
Inventories, net | $ | 81,439 | $ | 63,132 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Components of property and equipment | ' | ||||||||
Property and equipment are as follows (in thousands): | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Land | $ | 5,852 | $ | 5,088 | |||||
Buildings and leasehold improvements | 32,695 | 32,269 | |||||||
Machinery, equipment and rental tools | 78,839 | 71,073 | |||||||
Equipment in progress | 6,771 | 4,601 | |||||||
Furniture and fixtures | 2,499 | 2,400 | |||||||
Transportation equipment | 6,168 | 6,340 | |||||||
Computer equipment and software | 7,513 | 7,617 | |||||||
Property and equipment | 140,337 | 129,388 | |||||||
Less accumulated depreciation | (57,067 | ) | (50,274 | ) | |||||
Property and equipment, net | $ | 83,270 | $ | 79,114 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Changes in the carrying value of goodwill | ' | |||||||||||||||
Changes in the carrying value of goodwill for each reporting unit are as follows (in thousands): | ||||||||||||||||
Energy Chemical Technologies | Consumer and Industrial Chemical Technologies | Teledrift® | Total | |||||||||||||
Balance at December 31, 2013 | $ | 30,296 | $ | 20,642 | $ | 15,333 | $ | 66,271 | ||||||||
Final Florida Chemical acquisition | — | (1,162 | ) | — | (1,162 | ) | ||||||||||
adjustment | ||||||||||||||||
Addition upon acquisition of EOGA | 5,455 | — | — | 5,455 | ||||||||||||
Addition upon acquisition of SiteLark | 567 | — | — | 567 | ||||||||||||
Balance at September 30, 2014 | $ | 36,318 | $ | 19,480 | $ | 15,333 | $ | 71,131 | ||||||||
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facility (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Components of long-term debt | ' | |||||||
Long-term debt is as follows (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Long-term debt: | ||||||||
Term loan | $ | 37,327 | $ | 45,833 | ||||
Borrowings under revolving credit facility | 4,224 | 16,272 | ||||||
Total long-term debt | 41,551 | 62,105 | ||||||
Less current portion of long-term debt | (11,367 | ) | (26,415 | ) | ||||
Long-term debt, less current portion | $ | 30,184 | $ | 35,690 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Components of basic and diluted earnings per common share | ' | |||||||||||||||
Basic and diluted earnings per common share are as follows (in thousands, except per share data): | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income - Basic and Diluted | $ | 14,272 | $ | 8,968 | $ | 37,330 | $ | 25,173 | ||||||||
Weighted average common shares outstanding - Basic | 54,789 | 52,742 | 54,464 | 50,819 | ||||||||||||
Assumed conversions: | ||||||||||||||||
Incremental common shares from warrants | — | 1,365 | 162 | 1,404 | ||||||||||||
Incremental common shares from stock options | 867 | 1,134 | 901 | 1,143 | ||||||||||||
Incremental common shares from restricted stock units | 34 | 76 | 9 | 41 | ||||||||||||
Weighted average common shares outstanding - Diluted | 55,690 | 55,317 | 55,536 | 53,407 | ||||||||||||
Basic earnings per common share | $ | 0.26 | $ | 0.17 | $ | 0.69 | $ | 0.5 | ||||||||
Diluted earnings per common share | $ | 0.26 | $ | 0.16 | $ | 0.67 | $ | 0.47 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Carrying value and estimated fair value of convertible notes and long-term debt | ' | |||||||||||||||
The carrying value and estimated fair value of the Company’s long-term debt are as follows (in thousands): | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Term loan | $ | 37,327 | $ | 37,327 | $ | 45,833 | $ | 45,833 | ||||||||
Borrowings under revolving credit facility | 4,224 | 4,224 | 16,272 | 16,272 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Reconciliation of effective tax rate to the U.S. federal statutory tax rate | ' | |||||||||||
A reconciliation of the effective tax rate to the U.S. federal statutory tax rate is as follows: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Federal statutory tax rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||
State income taxes, net of federal benefit | 1.8 | 3.6 | 2.1 | 3.2 | ||||||||
Return to accrual adjustments | (4.9 | ) | 1.1 | (1.8 | ) | 0.4 | ||||||
Domestic production activities deduction | (1.9 | ) | (2.3 | ) | (2.4 | ) | (2.4 | ) | ||||
Other | (0.2 | ) | 1.2 | 0.1 | 0.5 | |||||||
Effective income tax rate | 29.8 | % | 38.6 | % | 33 | % | 36.7 | % | ||||
Schedule of deferred tax assets and liabilities | ' | |||||||||||
Deferred taxes are presented in the balance sheets as follows (in thousands): | ||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||
Current deferred tax assets | $ | 2,840 | $ | 2,522 | ||||||||
Non-current deferred tax assets | 14,090 | 15,012 | ||||||||||
Non-current deferred tax liabilities | (26,048 | ) | (27,575 | ) | ||||||||
Net deferred tax assets (liabilities) | $ | (9,118 | ) | $ | (10,041 | ) |
Business_Segment_Geographic_an1
Business Segment, Geographic and Major Customer Information (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Financial information regarding reportable segments | ' | |||||||||||||||||||||||
Summarized financial information of the reportable segments is as follows (in thousands): | ||||||||||||||||||||||||
As of and for the three months ended September 30, | Energy Chemical Technologies | Consumer and Industrial Chemical Technologies | Drilling Technologies | Production Technologies | Corporate and | Total | ||||||||||||||||||
Other | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 68,181 | $ | 13,713 | $ | 29,920 | $ | 4,947 | $ | — | $ | 116,761 | ||||||||||||
Gross margin | 28,424 | 3,310 | 11,928 | 2,416 | — | 46,078 | ||||||||||||||||||
Income (loss) from operations | 19,903 | 1,758 | 5,557 | 1,583 | (7,954 | ) | 20,847 | |||||||||||||||||
Depreciation and amortization | 1,103 | 547 | 2,433 | 81 | 298 | 4,462 | ||||||||||||||||||
Total assets | 144,738 | 89,574 | 142,774 | 18,252 | 17,080 | 412,418 | ||||||||||||||||||
Capital expenditures | 2,580 | 7 | 818 | 141 | 703 | 4,249 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 51,670 | $ | 15,292 | $ | 27,569 | $ | 3,857 | $ | — | $ | 98,388 | ||||||||||||
Gross margin | 21,849 | 3,588 | 10,821 | 1,244 | — | 37,502 | ||||||||||||||||||
Income (loss) from operations | 16,247 | 2,301 | 4,309 | 769 | (8,539 | ) | 15,087 | |||||||||||||||||
Depreciation and amortization | 932 | 382 | 2,438 | 60 | 213 | 4,025 | ||||||||||||||||||
Total assets | 121,876 | 97,129 | 136,832 | 16,542 | 8,600 | 380,979 | ||||||||||||||||||
Capital expenditures | 161 | 165 | 1,596 | 225 | 328 | 2,475 | ||||||||||||||||||
As of and for the nine months ended September 30, | Energy Chemical Technologies | Consumer and Industrial Chemical Technologies | Drilling Technologies | Production Technologies | Corporate and | Total | ||||||||||||||||||
Other | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 193,148 | $ | 39,351 | $ | 82,061 | $ | 10,093 | $ | — | $ | 324,653 | ||||||||||||
Gross margin | 85,074 | 10,237 | 32,477 | 4,280 | — | 132,068 | ||||||||||||||||||
Income (loss) from operations | 60,690 | 5,064 | 13,073 | 1,925 | (23,432 | ) | 57,320 | |||||||||||||||||
Depreciation and amortization | 3,264 | 1,529 | 7,363 | 244 | 876 | 13,276 | ||||||||||||||||||
Total assets | 144,738 | 89,574 | 142,774 | 18,252 | 17,080 | 412,418 | ||||||||||||||||||
Capital expenditures | 5,383 | 37 | 6,139 | 252 | 1,683 | 13,494 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 144,029 | $ | 27,967 | $ | 86,268 | $ | 11,953 | $ | — | $ | 270,217 | ||||||||||||
Gross margin | 61,548 | 7,281 | 34,622 | 4,275 | — | 107,726 | ||||||||||||||||||
Income (loss) from operations | 45,300 | 4,648 | 15,510 | 2,712 | (27,004 | ) | 41,166 | |||||||||||||||||
Depreciation and amortization | 2,201 | 634 | 7,215 | 181 | 717 | 10,948 | ||||||||||||||||||
Total assets | 121,876 | 97,129 | 136,832 | 16,542 | 8,600 | 380,979 | ||||||||||||||||||
Capital expenditures | 3,077 | 165 | 4,066 | 1,669 | 1,008 | 9,985 | ||||||||||||||||||
Revenue by geographic location | ' | |||||||||||||||||||||||
Revenue by geographic location is as follows (in thousands): | ||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
U.S. | $ | 92,643 | $ | 84,640 | $ | 271,663 | $ | 234,151 | ||||||||||||||||
Other countries | 24,118 | 13,748 | 52,990 | 36,066 | ||||||||||||||||||||
Total | $ | 116,761 | $ | 98,388 | $ | 324,653 | $ | 270,217 | ||||||||||||||||
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
country | Flotek Gulf, LLC and Flotek Gulf Research, LLC [Member] | Flotek and Tasneea [Member] | Flotek and Tasneea [Member] | Tasneea [Member] | ||
Florida Gulf, LLC [Member] | Florida Gulf Research, LLC [Member] | Flotek Gulf, LLC and Flotek Gulf Research, LLC [Member] | ||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' |
Number of countries Flotek actively markets products and services, over 20 countries | 20 | ' | ' | ' | ' | ' |
Ownership percentage of noncontrolling interest | ' | ' | 55.00% | ' | ' | ' |
Ownership percentage of noncontrolling interest by noncontrolling owners | ' | ' | ' | ' | ' | 45.00% |
Transfer of initial capital | ' | ' | ' | $400,000 | $400,000 | ' |
Restricted cash | $801,000 | $0 | ' | ' | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Jan. 02, 2014 | Apr. 02, 2014 | 10-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | |
EOGA [Member] | SiteLark [Member] | Florida Chemical [Member] | Florida Chemical [Member] | Florida Chemical [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percent of membership interests acquired | ' | ' | 100.00% | 100.00% | ' | ' | ' |
Consideration transferred, cash payments | ' | ' | $6,400,000 | $400,000 | ' | ' | ' |
Consideration transferred, common stock issued, shares | ' | ' | 94,354 | 5,327 | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | 106,400,000 | ' | ' |
Final adjustment related to acquisition, increase in current deferred tax assets | $1,162,000 | $0 | ' | ' | ' | $1,200,000 | $1,162,000 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental non-cash investing and financing activities: | ' | ' |
Value of common stock issued in acquisitions | $2,043 | $52,711 |
Final Florida Chemical acquisition adjustment | 1,162 | 0 |
Value of common stock issued in payment of accrued liability | 600 | 0 |
Equipment acquired through capital leases | 0 | 866 |
Exercise of stock options by common stock surrender | 1,183 | 2,979 |
Supplemental cash payment information: | ' | ' |
Interest paid | 1,038 | 1,410 |
Income taxes paid | $18,393 | $13,343 |
Revenue_Details
Revenue (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Differentiation of revenue and cost of revenue | ' | ' | ' | ' |
Revenue: Products | $92,708 | $76,376 | $257,415 | $204,229 |
Revenue: Rentals | 16,966 | 15,375 | 45,954 | 46,794 |
Revenue: Services | 7,087 | 6,637 | 21,284 | 19,194 |
Total revenue | 116,761 | 98,388 | 324,653 | 270,217 |
Cost of Revenue: Products | 57,315 | 50,367 | 155,048 | 131,875 |
Cost of Revenue: Rentals | 8,272 | 6,868 | 22,444 | 17,666 |
Cost of Revenue: Services | 3,074 | 1,610 | 9,042 | 7,179 |
Cost of Revenue: Depreciation | 2,022 | 2,041 | 6,051 | 5,771 |
Total cost of revenue | $70,683 | $60,886 | $192,585 | $162,491 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Inventory | ' | ' |
Raw materials | $29,681 | $13,953 |
Work-in-process | 2,880 | 1,904 |
Finished goods | 51,026 | 50,019 |
Inventories | 83,587 | 65,876 |
Less reserve for excess and obsolete inventory | -2,148 | -2,744 |
Inventories, net | $81,439 | $63,132 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Property, Plant and Equipment | ' | ' |
Land | $5,852 | $5,088 |
Buildings and leasehold improvements | 32,695 | 32,269 |
Machinery, equipment and rental tools | 78,839 | 71,073 |
Equipment in progress | 6,771 | 4,601 |
Furniture and fixtures | 2,499 | 2,400 |
Property and equipment | 140,337 | 129,388 |
Less accumulated depreciation | -57,067 | -50,274 |
Property and equipment , net | 83,270 | 79,114 |
Transportation equipment [Member] | ' | ' |
Components of Property, Plant and Equipment | ' | ' |
Property and equipment | 6,168 | 6,340 |
Computer equipment and software [Member] | ' | ' |
Components of Property, Plant and Equipment | ' | ' |
Property and equipment | $7,513 | $7,617 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense, inclusive of expense captured in cost of revenue | $3.30 | $3 | $9.70 | $8.40 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Goodwill [Line Items] | ' | ' | ' | ' |
Impairments of goodwill recognized | $0 | $0 | $0 | $0 |
Energy Chemical Technologies [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill acquired | ' | ' | $6,000,000 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Carrying Value of Goodwill (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Energy Chemical Technologies [Member] | Consumer and Industrial Chemical Technologies [Member] | Consumer and Industrial Chemical Technologies [Member] | Teledrift [Member] | Teledrift [Member] | Florida Chemical [Member] | Florida Chemical [Member] | Florida Chemical [Member] | Florida Chemical [Member] | Florida Chemical [Member] | EOGA [Member] | EOGA [Member] | EOGA [Member] | EOGA [Member] | SiteLark [Member] | SiteLark [Member] | SiteLark [Member] | SiteLark [Member] | |||
Energy Chemical Technologies [Member] | Consumer and Industrial Chemical Technologies [Member] | Teledrift [Member] | Energy Chemical Technologies [Member] | Consumer and Industrial Chemical Technologies [Member] | Teledrift [Member] | Energy Chemical Technologies [Member] | Consumer and Industrial Chemical Technologies [Member] | Teledrift [Member] | ||||||||||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at December 31, 2013 | $66,271 | ' | $30,296 | $19,480 | $20,642 | $15,333 | $15,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Final Florida Chemical acquisition adjustment | -1,162 | 0 | ' | ' | ' | ' | ' | -1,200 | -1,162 | 0 | -1,162 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Addition upon acquisition | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,455 | 5,455 | 0 | 0 | 567 | 567 | 0 | 0 |
Balance at September 30, 2014 | $71,131 | ' | $36,318 | $19,480 | $20,642 | $15,333 | $15,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization of Intangible Assets | $1,200,000 | $1,300,000 | $3,600,000 | $2,700,000 |
Amortization of deferred financing costs | $100,000 | ' | $257,000 | $65,000 |
Minimum [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization period | ' | ' | '2 years | ' |
Maximum [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization period | ' | ' | '20 years | ' |
LongTerm_Debt_and_Credit_Facil2
Long-Term Debt and Credit Facility (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term debt: | ' | ' |
Long-term debt | $41,551 | $62,105 |
Less amount reported as current | -11,367 | -26,415 |
Long-term debt, less current portion | 30,184 | 35,690 |
Term loan [Member] | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | 37,327 | 45,833 |
Revolving Credit Facility [Member] | ' | ' |
Long-term debt: | ' | ' |
Long-term debt | $4,224 | $16,272 |
LongTerm_Debt_and_Credit_Facil3
Long-Term Debt and Credit Facility - Credit Facility (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 03, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Line of Credit [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Term loan [Member] | Term loan [Member] | Term loan [Member] | PNC Bank Base Rate [Member] | PNC Bank Base Rate [Member] | London Interbank Lending Rate (LIBOR) [Member] | London Interbank Lending Rate (LIBOR) [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | Term loan [Member] | Line of Credit [Member] | Term loan [Member] | PNC Bank Base Rate [Member] | PNC Bank Base Rate [Member] | London Interbank Lending Rate (LIBOR) [Member] | London Interbank Lending Rate (LIBOR) [Member] | PNC Bank Base Rate [Member] | PNC Bank Base Rate [Member] | London Interbank Lending Rate (LIBOR) [Member] | London Interbank Lending Rate (LIBOR) [Member] | |||||||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | Term loan [Member] | Line of Credit [Member] | Term loan [Member] | Line of Credit [Member] | Term loan [Member] | Line of Credit [Member] | Term loan [Member] | |||||||||||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | $75,000,000 | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, face amount | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, financial covenant, EBITDA to debt ratio, upper range | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, financial covenant, funded debt to adjusted EBITDA ratio | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual limit on capital expenditures | ' | ' | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant, Percent of Adjusted EBITDA Which Must Be Prepaid | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility Ceiling Value, Applicable to 25% Of Adjusted EBITDA Which Must Be Paid | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant, Maximum Number of Days From Year End By Which Prepayment of 25% of Adjusted EBTDA is Due | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess Cash Flow Minimum Achieved Under Loan Covenant | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid on term loan due to covenant requirement | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, variable percentage rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.25% | 1.50% | 2.25% | 1.00% | 1.75% | 2.00% | 2.75% |
Base lending rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, commitment fee percentage | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' | 1.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | ' | 2.41% | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, availability | ' | ' | ' | 74,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, available borrowing capacity, net of outstanding borrowings | ' | ' | ' | 70,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | 41,551,000 | 62,105,000 | ' | ' | 4,224,000 | 16,272,000 | ' | ' | 37,327,000 | 45,833,000 | ' | 300,000 | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly principal payments | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_and_Credit_Facil4
Long-Term Debt and Credit Facility - Convertible Notes (Details) (2008 Notes [Member], USD $) | Feb. 15, 2013 |
In Millions, unless otherwise specified | |
2008 Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Notes repurchased | $5.20 |
LongTerm_Debt_and_Credit_Facil5
Long-Term Debt and Credit Facility - Additional Disclosures (Details) (USD $) | 0 Months Ended | 24 Months Ended | |
Jan. 22, 2013 | Dec. 31, 2012 | Feb. 11, 2008 | |
Debt Disclosure [Abstract] | ' | ' | ' |
Share lending agreement, number of common stock shares loaned | ' | ' | 3,800,000 |
Own share lending arrangement nominal loan fee per share | ' | ' | $0.00 |
Return of borrowed shares, in shares | 2,439,558 | 1,360,442 | ' |
Consideration paid for return of shares borrowed under share lending agreement | ' | $0 | ' |
Earnings_Per_Share_Basic_and_D
Earnings Per Share - Basic and Diluted Earnings per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income - Basic and Diluted | $14,272 | $8,968 | $37,330 | $25,173 |
Weighted average common shares outstanding - Basic | 54,789 | 52,742 | 54,464 | 50,819 |
Assumed conversions: | ' | ' | ' | ' |
Incremental common shares from warrants | 0 | 1,365 | 162 | 1,404 |
Incremental common shares from stock options | 867 | 1,134 | 901 | 1,143 |
Incremental common shares from restricted stock units | 34 | 76 | 9 | 41 |
Weighted average common shares outstanding - Diluted | 55,690 | 55,317 | 55,536 | 53,407 |
Basic earnings per common share | $0.26 | $0.17 | $0.69 | $0.50 |
Diluted earnings per common share | $0.26 | $0.16 | $0.67 | $0.47 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Disclosures (Details) (USD $) | Feb. 11, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 15, 2013 |
In Millions, unless otherwise specified | Stock Options [Member] | Stock Options [Member] | 2008 Notes [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Common stock included in share lending agreement | 3.8 | ' | ' | ' |
Notes repurchased | ' | ' | ' | $5.20 |
Anti-dilutive securities excluded from calculation of earnings per share | ' | 0.1 | 0.1 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Disclosures (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Cash equivalents | $0 | ' | $0 |
Asset impairment | $0 | $0 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Other Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Borrowings under revolving credit facility | $4,224 | $16,272 |
Carrying Value [Member] | Term loan [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | 37,327 | 45,833 |
Fair Value [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Borrowings under revolving credit facility | 4,224 | 16,272 |
Fair Value [Member] | Term loan [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Long-term debt | $37,327 | $45,833 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Filinggroup | Florida Chemical [Member] | Florida Chemical [Member] | Consumer and Industrial Chemical Technologies [Member] | ||
Florida Chemical [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Number of U.S. tax return filing groups | 2 | ' | ' | ' | ' |
Final adjustment related to acquisition, increase in current deferred tax assets | $1,162 | $0 | $1,200 | $1,162 | $1,162 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.80% | 3.60% | 2.10% | 3.20% |
Return to accrual adjustments | -4.90% | 1.10% | -1.80% | 0.40% |
Domestic production activities deduction | -1.90% | -2.30% | -2.40% | -2.40% |
Other | -0.20% | 1.20% | 0.10% | 0.50% |
Effective income tax rate | 29.80% | 38.60% | 33.00% | 36.70% |
Income_Taxes_Deferred_Taxes_De
Income Taxes - Deferred Taxes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current deferred tax assets | $2,840 | $2,522 |
Non-current deferred tax assets | 14,090 | 15,012 |
Non-current deferred tax liabilities | -26,048 | -27,575 |
Net deferred tax assets (liabilities) | ($9,118) | ($10,041) |
Convertible_Preferred_Stock_an1
Convertible Preferred Stock and Stock Warrants (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Feb. 07, 2014 | Jun. 14, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 04, 2011 | Aug. 12, 2009 | |
payment | |||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Issuance of cumulative convertible preferred stock and warrants | ' | ' | ' | ' | ' | ' | 16,000 |
Issue price of cumulative convertible preferred stock and warrants | ' | ' | ' | ' | ' | ' | $1,000 |
Issuance of detachable warrants to acquire common stock | ' | ' | ' | ' | ' | ' | 155 |
Issuance of detachable Contingent Warrants to acquire common stock | ' | ' | ' | ' | ' | ' | 500 |
Preferred Stock | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock shares issued upon conversion | ' | ' | 434.782 | ' | ' | 434.782 | ' |
Conversion price of convertible preferred stock | ' | ' | $2.30 | ' | ' | ' | ' |
Cumulative convertible preferred stock, liquidation preference | ' | ' | $1,000 | ' | ' | ' | ' |
Dividends accrued, liquidation preference annual payment rate | ' | ' | 15.00% | ' | ' | ' | ' |
Number of quarterly dividend payments | ' | ' | 8 | ' | ' | ' | ' |
Stock Warrants | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of warrant liability | ' | ' | ' | ' | $2,600,000 | ' | ' |
Revalued warrant liability | ' | 14,000,000 | ' | ' | ' | ' | ' |
Stock warrants exercised, shares | 1,277,250 | ' | ' | ' | ' | ' | ' |
Common stock issued with warrant exercise, exercise price per share | $1.21 | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of stock warrants | $1,500,000 | ' | $1,545,000 | $323,000 | ' | ' | ' |
Exercisable Warrants [Member] | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Exercise price of the exercisable warrants | ' | ' | ' | ' | ' | ' | $2.31 |
Contingently Exercisable Warrants [Member] | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Exercise price of the exercisable warrants | ' | ' | ' | ' | ' | ' | $2.45 |
Stock Warrants | ' | ' | ' | ' | ' | ' | ' |
Volatility rate | ' | 58.10% | ' | ' | ' | ' | ' |
Risk-free return rate | ' | 0.36% | ' | ' | ' | ' | ' |
Expected dividend rate | ' | 0.00% | ' | ' | ' | ' | ' |
Business_Segment_Geographic_an2
Business Segment, Geographic and Major Customer Information - Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Summarized financial information regarding reportable segments | ' | ' | ' | ' | ' |
Net revenue from external customers | $116,761 | $98,388 | $324,653 | $270,217 | ' |
Gross margin | 46,078 | 37,502 | 132,068 | 107,726 | ' |
Income (loss) from operations | 20,847 | 15,087 | 57,320 | 41,166 | ' |
Depreciation and amortization | 4,462 | 4,025 | 13,276 | 10,948 | ' |
Total assets | 412,418 | 380,979 | 412,418 | 380,979 | 375,581 |
Capital expenditures | 4,249 | 2,475 | 13,494 | 9,985 | ' |
Energy Chemical Technologies [Member] | ' | ' | ' | ' | ' |
Summarized financial information regarding reportable segments | ' | ' | ' | ' | ' |
Net revenue from external customers | 68,181 | 51,670 | 193,148 | 144,029 | ' |
Gross margin | 28,424 | 21,849 | 85,074 | 61,548 | ' |
Income (loss) from operations | 19,903 | 16,247 | 60,690 | 45,300 | ' |
Depreciation and amortization | 1,103 | 932 | 3,264 | 2,201 | ' |
Total assets | 144,738 | 121,876 | 144,738 | 121,876 | ' |
Capital expenditures | 2,580 | 161 | 5,383 | 3,077 | ' |
Consumer and Industrial Chemical Technologies [Member] | ' | ' | ' | ' | ' |
Summarized financial information regarding reportable segments | ' | ' | ' | ' | ' |
Net revenue from external customers | 13,713 | 15,292 | 39,351 | 27,967 | ' |
Gross margin | 3,310 | 3,588 | 10,237 | 7,281 | ' |
Income (loss) from operations | 1,758 | 2,301 | 5,064 | 4,648 | ' |
Depreciation and amortization | 547 | 382 | 1,529 | 634 | ' |
Total assets | 89,574 | 97,129 | 89,574 | 97,129 | ' |
Capital expenditures | 7 | 165 | 37 | 165 | ' |
Drilling Products [Member] | ' | ' | ' | ' | ' |
Summarized financial information regarding reportable segments | ' | ' | ' | ' | ' |
Net revenue from external customers | 29,920 | 27,569 | 82,061 | 86,268 | ' |
Gross margin | 11,928 | 10,821 | 32,477 | 34,622 | ' |
Income (loss) from operations | 5,557 | 4,309 | 13,073 | 15,510 | ' |
Depreciation and amortization | 2,433 | 2,438 | 7,363 | 7,215 | ' |
Total assets | 142,774 | 136,832 | 142,774 | 136,832 | ' |
Capital expenditures | 818 | 1,596 | 6,139 | 4,066 | ' |
Production Technologies [Member] | ' | ' | ' | ' | ' |
Summarized financial information regarding reportable segments | ' | ' | ' | ' | ' |
Net revenue from external customers | 4,947 | 3,857 | 10,093 | 11,953 | ' |
Gross margin | 2,416 | 1,244 | 4,280 | 4,275 | ' |
Income (loss) from operations | 1,583 | 769 | 1,925 | 2,712 | ' |
Depreciation and amortization | 81 | 60 | 244 | 181 | ' |
Total assets | 18,252 | 16,542 | 18,252 | 16,542 | ' |
Capital expenditures | 141 | 225 | 252 | 1,669 | ' |
Corporate and Other [Member] | ' | ' | ' | ' | ' |
Summarized financial information regarding reportable segments | ' | ' | ' | ' | ' |
Net revenue from external customers | 0 | 0 | 0 | 0 | ' |
Gross margin | 0 | 0 | 0 | 0 | ' |
Income (loss) from operations | -7,954 | -8,539 | -23,432 | -27,004 | ' |
Depreciation and amortization | 298 | 213 | 876 | 717 | ' |
Total assets | 17,080 | 8,600 | 17,080 | 8,600 | ' |
Capital expenditures | $703 | $328 | $1,683 | $1,008 | ' |
Business_Segment_Geographic_an3
Business Segment, Geographic and Major Customer Information - Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue by geographic location | ' | ' | ' | ' |
Revenue | $116,761 | $98,388 | $324,653 | $270,217 |
U.S. [Member] | ' | ' | ' | ' |
Revenue by geographic location | ' | ' | ' | ' |
Revenue | 92,643 | 84,640 | 271,663 | 234,151 |
Other countries [Member] | ' | ' | ' | ' |
Revenue by geographic location | ' | ' | ' | ' |
Revenue | $24,118 | $13,748 | $52,990 | $36,066 |
Business_Segment_Geographic_an4
Business Segment, Geographic and Major Customer Information - Additional Disclosures (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of segments | ' | ' | 4 | ' |
Customer Concentration Risk [Member] | Major Customers [Member] | Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Percentage of revenue by major customers | 12.70% | 15.50% | 17.00% | 16.60% |
Customer Concentration Risk [Member] | Major Customers [Member] | Sales [Member] | Chemical Technologies [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Percentage of revenue by major customers | ' | ' | 93.00% | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 1 Months Ended | 9 Months Ended |
Feb. 28, 2011 | Sep. 30, 2014 | |
agreement | majorfinancialinstitution | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Separate representation agreements | 2 | ' |
Exercise price of warrant | 125.00% | ' |
Potential number of warrants issued under representation agreements during 2013 and 2014 | 100,000 | ' |
Number of financial institutions maintaining cash | ' | 1 |