Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 16, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FLOTEK INDUSTRIES INC/CN/ | |
Entity Central Index Key | 928054 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 53,486,963 |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $2,499 | $1,266 |
Accounts receivable, net of allowance for doubtful accounts of $851 and $847 at March 31, 2015 and December 31, 2014, respectively | 56,011 | 78,624 |
Inventories | 98,162 | 85,958 |
Deferred tax assets, net | 1,799 | 2,696 |
Other current assets | 9,275 | 11,055 |
Total current assets | 167,746 | 179,599 |
Property and equipment, net | 88,239 | 86,111 |
Goodwill | 72,820 | 71,131 |
Deferred tax assets, net | 13,486 | 12,907 |
Other intangible assets, net | 72,716 | 73,528 |
TOTAL ASSETS | 415,007 | 423,276 |
Current liabilities: | ||
Accounts payable | 28,427 | 33,185 |
Accrued liabilities | 7,651 | 12,314 |
Income taxes payable | 1,755 | 1,307 |
Interest payable | 106 | 93 |
Current portion of long-term debt | 24,417 | 18,643 |
Total current liabilities | 62,356 | 65,542 |
Long-term debt, less current portion | 23,613 | 25,398 |
Deferred tax liabilities, net | 23,297 | 25,982 |
Total liabilities | 109,266 | 116,922 |
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; 55,154,224 shares issued and 53,429,599 shares outstanding at March 31, 2015; 54,633,726 shares issued and 53,357,811 shares outstanding at December 31, 2014 | 6 | 5 |
Additional paid-in capital | 259,139 | 254,233 |
Accumulated other comprehensive income (loss) | -742 | -502 |
Retained earnings | 51,247 | 52,762 |
Treasury stock, at cost; 704,350 and 449,397 shares at March 31, 2015 and December 31, 2014, respectively | -4,267 | -495 |
Flotek Industries, Inc. stockholders’ equity | 305,383 | 306,003 |
Noncontrolling interests | 358 | 351 |
Total equity | 305,741 | 306,354 |
TOTAL LIABILITIES AND EQUITY | $415,007 | $423,276 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $851 | $847 |
Cumulative convertible preferred stock, par value (in dollars per share) | $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 (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 55,154,224 | 54,633,726 |
Common stock, shares outstanding | 53,429,599 | 53,357,811 |
Treasury stock, shares | 704,350 | 449,397 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $82,373 | $102,575 |
Cost of revenue | 55,846 | 58,894 |
Gross margin | 26,527 | 43,681 |
Expenses: | ||
Selling, general and administrative | 23,888 | 21,572 |
Depreciation and amortization | 2,676 | 2,285 |
Research and development | 1,252 | 1,026 |
Total expenses | 27,816 | 24,883 |
Income (loss) from operations | -1,289 | 18,798 |
Other income (expense): | ||
Interest expense | -407 | -454 |
Other income (expense), net | -225 | 54 |
Total other income (expense) | -632 | -400 |
Income (loss) before income taxes | -1,921 | 18,398 |
Income tax benefit (expense) | 406 | -6,380 |
Net income (loss) | ($1,515) | $12,018 |
Earnings (loss) per common share: | ||
Basic earnings (loss) per common share (in dollars per share) | ($0.03) | $0.22 |
Diluted earnings (loss) per common share (in dollars per share) | ($0.03) | $0.22 |
Weighted average common shares: | ||
Weighted average common shares used in computing basic earnings (loss) per common share (in shares) | 54,448 | 53,948 |
Weighted average common shares used in computing diluted earnings (loss) per common share (in shares) | 54,448 | 55,398 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | ($1,515) | $12,018 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | -240 | -149 |
Comprehensive income (loss) | ($1,755) | $11,869 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($1,515) | $12,018 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 4,570 | 4,219 |
Amortization of deferred financing costs | 86 | 106 |
Gain on sale of assets | -1,223 | -558 |
Stock compensation expense | 3,462 | 2,334 |
Deferred income tax benefit | -2,367 | -290 |
Excess tax benefit related to share-based awards | -87 | -1,300 |
Changes in current assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 22,613 | -525 |
Inventories | -11,990 | -9,863 |
Other current assets | 1,782 | 885 |
Accounts payable | -4,758 | 6,700 |
Accrued liabilities | -4,663 | -2,531 |
Income taxes payable | 535 | 4,322 |
Interest payable | 13 | -12 |
Net cash provided by operating activities | 6,458 | 15,505 |
Cash flows from investing activities: | ||
Capital expenditures | -5,590 | -4,115 |
Proceeds from sale of assets | 1,315 | 832 |
Payments for acquisitions, net of cash acquired | -1,250 | -5,286 |
Purchase of patents and other intangible assets | -115 | -135 |
Net cash used in investing activities | -5,640 | -8,704 |
Cash flows from financing activities: | ||
Repayments of indebtedness | -4,786 | -4,786 |
Borrowings on revolving credit facility | 112,151 | 96,750 |
Repayments on revolving credit facility | -103,376 | -99,097 |
Debt issuance costs | 0 | -59 |
Excess tax benefit related to share-based awards | 87 | 1,300 |
Purchase of treasury stock related to share-based awards | -1,055 | -4,045 |
Proceeds from sale of common stock | 256 | 231 |
Repurchase of common stock | -2,651 | 0 |
Proceeds from exercise of stock options | 22 | 443 |
Proceeds from exercise of stock warrants | 0 | 1,545 |
Proceeds from noncontrolling interest | 7 | 0 |
Net cash provided by (used in) financing activities | 655 | -7,718 |
Effect of changes in exchange rates on cash and cash equivalents | -240 | -149 |
Net increase (decrease) in cash and cash equivalents | 1,233 | -1,066 |
Cash and cash equivalents at the beginning of period | 1,266 | 2,730 |
Cash and cash equivalents at the end of period | $2,499 | $1,664 |
Unaudited_Consolidated_Stateme3
Unaudited Consolidated Statement of Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interests [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2014 | $306,354 | $5 | ($495) | $254,233 | ($502) | $52,762 | $351 |
Beginning balance, treasury shares at Dec. 31, 2014 | 449,397 | 449,000 | |||||
Beginning balance, shares at Dec. 31, 2014 | 54,634,000 | ||||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net income (loss) | -1,515 | -1,515 | |||||
Foreign currency translation adjustment | -240 | -240 | |||||
Stock issued under employee stock purchase plan | 256 | 256 | |||||
Stock issued under employee stock purchase plan, shares | -18,000 | ||||||
Stock options exercised | 88 | 88 | |||||
Stock options exercised, shares | 35,000 | ||||||
Stock surrendered for exercise of stock options | -66 | -66 | |||||
Stock surrendered for exercise of stock options, shares | 4,000 | ||||||
Restricted stock granted | 1 | -1 | |||||
Restricted stock granted, shares | 425,000 | ||||||
Restricted stock forfeited, shares | 7,000 | ||||||
Treasury stock purchased | -1,055 | -1,055 | |||||
Treasury stock purchased, shares | 82,000 | ||||||
Stock compensation expense | 3,462 | 3,462 | |||||
Excess tax benefit related to share-based awards | 87 | 87 | |||||
Investment in Flotek Gulf, LLC and Flotek Gulf Research, LLC | 7 | 7 | |||||
Stock issued in IAL acquisition | 1,014 | 1,014 | |||||
Stock issued in IAL acquisition, shares | 60,000 | ||||||
Repurchase of common stock | -2,651 | -2,651 | |||||
Repurchase of common stock, shares | 180,190 | 180,000 | |||||
Ending balance at Mar. 31, 2015 | $305,741 | $6 | ($4,267) | $259,139 | ($742) | $51,247 | $358 |
Ending balance, treasury shares at Mar. 31, 2015 | 704,350 | 704,000 | |||||
Ending balance, shares at Mar. 31, 2015 | 55,154,000 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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 global, diversified, technology-driven supplier of energy chemistries and consumer and industrial chemistries 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 subsidiaries (collectively referred to as the “Company”), includes energy related chemistry technologies, drilling and production technologies, and consumer and industrial chemistry technologies. Within energy technologies, the Company provides oilfield specialty chemistries and logistics, downhole 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 chemistry 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 Colorado, Florida, Louisiana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Wyoming, Canada, the Netherlands and the Middle East. Flotek’s products are marketed both domestically and internationally, with international presence and/or initiatives in over 20 countries. | |
Flotek was initially incorporated under the laws of the Province of British Columbia on May 17, 1985. On October 23, 2001, Flotek changed its corporate domicile to the state of Delaware. | |
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, 2014 (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 months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. | |
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 | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
(a) Application of New Accounting Standards | |
Effective January 1, 2015, the Company adopted the accounting guidance in Accounting Standards Update (“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. Implementation of this standard did not have a material effect on the consolidated financial statements. | |
Effective January 1, 2015, the Company adopted the accounting guidance in 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. Implementation of this standard did not have a material effect on the consolidated financial statements or the Company's current awards under its existing stock-based compensation plans. | |
(b) New Accounting Requirements and Disclosures | |
In May 2014, the Financial Accounting Standards Board (“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 January 2015, the FASB issued ASU No. 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” This ASU eliminates from generally accepted accounting principles (“GAAP”) the concept of extraordinary items and the need for an entity to separately classify, present, and disclose extraordinary events and transactions, while retaining certain presentation and disclosure guidance for items that are unusual in nature or occur infrequently. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and may be applied retrospectively, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. | |
In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the consolidation analysis performed on certain types of legal entities. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and may be applied retrospectively, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. | |
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported on the Consolidated Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period with early application permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions |
On January 27, 2015, the Company acquired 100% of the assets of International Artificial Lift, LLC (“IAL”) for $1.3 million in cash consideration and 60,024 shares of the Company’s common stock. IAL is a development-stage company that specializes in the design, manufacturing and service of next-generation hydraulic pumping units that serve to increase and maximize production for oil and natural gas wells. | |
On April 1, 2014, the Company acquired 100% of the membership interests in SiteLark, LLC (“SiteLark”) for $0.4 million in cash 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. | |
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 $5.3 million in cash consideration, net of cash received, 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. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||
Supplemental cash flow information is as follows (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Supplemental non-cash investing and financing activities: | ||||||||
Value of common stock issued in acquisitions | $ | 1,014 | $ | 1,750 | ||||
Value of common stock issued in payment of accrued liability | — | 600 | ||||||
Exercise of stock options by common stock surrender | 66 | 1,005 | ||||||
Supplemental cash payment information: | ||||||||
Interest paid | $ | 309 | $ | 360 | ||||
Income taxes paid | 1,911 | 2,039 | ||||||
Revenue
Revenue | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue: | |||||||||
Products | $ | 66,160 | $ | 82,406 | |||||
Rentals | 11,824 | 13,923 | |||||||
Services | 4,389 | 6,246 | |||||||
$ | 82,373 | $ | 102,575 | ||||||
Cost of revenue: | |||||||||
Products | $ | 45,624 | $ | 47,732 | |||||
Rentals | 6,285 | 6,513 | |||||||
Services | 2,042 | 2,715 | |||||||
Depreciation | 1,895 | 1,934 | |||||||
$ | 55,846 | $ | 58,894 | ||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories are as follows (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw materials | $ | 55,492 | $ | 31,581 | ||||
Work-in-process | 3,211 | 3,129 | ||||||
Finished goods | 39,459 | 51,248 | ||||||
Inventories | $ | 98,162 | $ | 85,958 | ||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment are as follows (in thousands): | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Land | $ | 7,122 | $ | 6,780 | |||||
Buildings and leasehold improvements | 33,933 | 33,765 | |||||||
Machinery, equipment and rental tools | 85,108 | 80,731 | |||||||
Equipment in progress | 4,429 | 7,299 | |||||||
Furniture and fixtures | 2,619 | 2,528 | |||||||
Transportation equipment | 6,959 | 6,566 | |||||||
Computer equipment and software | 10,322 | 7,605 | |||||||
Property and equipment | 150,492 | 145,274 | |||||||
Less accumulated depreciation | (62,253 | ) | (59,163 | ) | |||||
Property and equipment, net | $ | 88,239 | $ | 86,111 | |||||
Depreciation expense, including expense recorded in cost of revenue, totaled $3.4 million and $3.0 million for the three months ended March 31, 2015 and 2014, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||||||||
During the three months ended March 31, 2015, the Company recognized $1.7 million of goodwill within the Production Technologies reporting unit in connection with the acquisition of IAL. There were no impairments of goodwill recognized during the three months ended March 31, 2015. | ||||||||||||||||||||
Changes in the carrying value of goodwill for each reporting unit are as follows (in thousands): | ||||||||||||||||||||
Energy Chemistry Technologies | Consumer and Industrial Chemistry Technologies | Teledrift® | Production Technologies | Total | ||||||||||||||||
Balance at December 31, 2014 | $ | 36,318 | $ | 19,480 | $ | 15,333 | $ | — | $ | 71,131 | ||||||||||
Addition upon acquisition of IAL | — | — | — | 1,689 | 1,689 | |||||||||||||||
Balance at March 31, 2015 | $ | 36,318 | $ | 19,480 | $ | 15,333 | $ | 1,689 | $ | 72,820 | ||||||||||
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 $1.2 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||
Amortization of deferred financing costs was $0.1 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. |
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facility | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt and Credit Facility | Long-Term Debt and Credit Facility | |||||||
Long-term debt is as follows (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Long-term debt: | ||||||||
Borrowings under revolving credit facility | $ | 17,274 | $ | 8,500 | ||||
Term loan | 30,756 | 35,541 | ||||||
Total long-term debt | 48,030 | 44,041 | ||||||
Less current portion of long-term debt | (24,417 | ) | (18,643 | ) | ||||
Long-term debt, less current portion | $ | 23,613 | $ | 25,398 | ||||
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, 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 $34 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, 2014, 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 2, 2015. This amount is classified as current debt at December 31, 2014. | ||||||||
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 of the Company’s domestic accounts receivable and inventory. | ||||||||
At March 31, 2015, 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 $57.5 million at March 31, 2015. | ||||||||
The interest rate on advances under the revolving credit facility varies based on the level of borrowing under the Credit Facility. 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 March 31, 2015. The Company is required to pay a monthly facility fee of 0.25% per annum, on any unused amount under the commitment based on daily averages. At March 31, 2015, $17.3 million was outstanding under the revolving credit facility, with $6.3 million borrowed as base rate loans at an interest rate of 3.75% and $11.0 million borrowed as LIBOR loans at an interest rate of 1.68%. | ||||||||
Borrowing under the revolving credit facility 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 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 March 31, 2015, $30.8 million was outstanding under the term loan, with $0.8 million borrowed as base rate loans at an interest rate of 4.50% and $30.0 million borrowed as LIBOR loans at an interest rate of 2.43%. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | Earnings (Loss) Per Share | ||||||||
Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive. | |||||||||
Potentially dilutive securities were excluded from the calculation of diluted earning (loss) per share for the three months ended March 31, 2015, since including them would have an anti-dilutive effect on earnings (loss) per share due to the net loss incurred during the period. Securities convertible into shares of common stock that were not considered in the diluted earnings (loss) per share calculation were 1.5 million stock options and 0.4 million restricted stock units. | |||||||||
Basic and diluted earnings per common share are as follows (in thousands, except per share data): | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) - Basic and Diluted | $ | (1,515 | ) | $ | 12,018 | ||||
Weighted average common shares outstanding - Basic | 54,448 | 53,948 | |||||||
Assumed conversions: | |||||||||
Incremental common shares from stock warrants | — | 486 | |||||||
Incremental common shares from stock options | — | 949 | |||||||
Incremental common shares from restricted stock units | — | 15 | |||||||
Weighted average common shares outstanding - Diluted | 54,448 | 55,398 | |||||||
Basic earnings (loss) per common share | $ | (0.03 | ) | $ | 0.22 | ||||
Diluted earnings (loss) per common share | $ | (0.03 | ) | $ | 0.22 | ||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 or December 31, 2014. | ||||||||||||||||
The carrying value and estimated fair value of the Company’s long-term debt are as follows (in thousands): | ||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Term loan | $ | 30,756 | $ | 30,756 | $ | 35,541 | $ | 35,541 | ||||||||
Borrowings under revolving credit facility | 17,274 | 17,274 | 8,500 | 8,500 | ||||||||||||
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 three months ended March 31, 2015 and 2014. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
Federal statutory tax rate | 35 | % | 35 | % | |||||
State income taxes, net of federal benefit | 5.4 | 2.3 | |||||||
Non-US income taxed at different rates | (23.6 | ) | — | ||||||
Non-deductible expenses | 5.4 | 0.1 | |||||||
Domestic production activities deduction | (1.1 | ) | (2.7 | ) | |||||
Effective income tax rate | 21.1 | % | 34.7 | % | |||||
The decline in the effective tax rate for the three months ended March 31, 2015, compared to the three months ended March 31, 2014, was primarily due to the mix of pre-tax profit and loss between domestic and international taxing jurisdictions. The Company plans to permanently reinvest profits from international operations into opportunities to expand the Company’s international presence. | |||||||||
Deferred taxes are presented in the balance sheets as follows (in thousands): | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Current deferred tax assets | $ | 1,799 | $ | 2,696 | |||||
Non-current deferred tax assets | 13,486 | 12,907 | |||||||
Non-current deferred tax liabilities | (23,297 | ) | (25,982 | ) | |||||
Net deferred tax assets (liabilities) | $ | (8,012 | ) | $ | (10,379 | ) |
Convertible_Preferred_Stock_an
Convertible Preferred Stock and Stock Warrants | 3 Months Ended |
Mar. 31, 2015 | |
Warrants and Rights Note Disclosure [Abstract] | |
Convertible Preferred Stock and Stock Warrants | Convertible Preferred Stock and Stock Warrants |
In August 2009, the Company sold convertible preferred stock with detachable warrants to purchase shares of the Company’s common stock. In February 2011, the Company exercised its contractual right to mandatorily convert all outstanding shares of convertible preferred stock into shares of common stock. Currently, the Company has no issued or outstanding shares of preferred stock. | |
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 has any outstanding warrants. |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program |
In November 2012, the Company's Board of Directors authorized the repurchase of up to $25 million of the Company's common stock. Repurchases may be made in the open market or through privately negotiated transactions. During the three months ended March 31, 2015, the Company repurchased 180,190 shares of its outstanding common stock on the open market at a cost of $2.7 million, inclusive of transaction costs, or an average price of $14.71 per share. | |
As of March 31, 2015, the Company has $12.0 million remaining under its share repurchase program. |
Business_Segment_Geographic_an
Business Segment, Geographic and Major Customer Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 Chemistry Technologies (previously referred to as Energy Chemical Technologies), Consumer and Industrial Chemistry Technologies (previously referred to as Consumer and Industrial Chemical Technologies), Drilling Technologies and Production Technologies. | ||||||||||||||||||||||||
• | Energy Chemistry Technologies designs, develops, manufactures, packages and markets specialty chemistries 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 Chemistry 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 downhole drilling equipment used in energy, mining, water well and industrial drilling activities. | |||||||||||||||||||||||
• | Production Technologies assembles and markets production-related equipment, including the PetrovalveTM 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 March 31, | Energy Chemistry Technologies | Consumer and Industrial Chemistry Technologies | Drilling Technologies | Production Technologies | Corporate and | Total | ||||||||||||||||||
Other | ||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 46,643 | $ | 13,463 | $ | 18,694 | $ | 3,573 | $ | — | $ | 82,373 | ||||||||||||
Gross margin | 16,100 | 3,706 | 5,991 | 730 | — | 26,527 | ||||||||||||||||||
Income (loss) from operations | 6,821 | 2,381 | (637 | ) | (539 | ) | (9,315 | ) | (1,289 | ) | ||||||||||||||
Depreciation and amortization | 1,204 | 552 | 2,319 | 125 | 370 | 4,570 | ||||||||||||||||||
Total assets | 152,423 | 92,438 | 141,229 | 25,176 | 3,741 | 415,007 | ||||||||||||||||||
Capital expenditures | 2,361 | 22 | 2,124 | 638 | 445 | 5,590 | ||||||||||||||||||
2014 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 62,377 | $ | 13,030 | $ | 24,901 | $ | 2,267 | $ | — | $ | 102,575 | ||||||||||||
Gross margin | 29,220 | 4,033 | 9,788 | 640 | — | 43,681 | ||||||||||||||||||
Income (loss) from operations | 21,623 | 2,335 | 3,317 | (79 | ) | (8,398 | ) | 18,798 | ||||||||||||||||
Depreciation and amortization | 1,067 | 433 | 2,437 | 70 | 212 | 4,219 | ||||||||||||||||||
Total assets | 137,638 | 93,217 | 136,141 | 14,864 | 8,656 | 390,516 | ||||||||||||||||||
Capital expenditures | 1,386 | 14 | 3,296 | 61 | 233 | 4,990 | ||||||||||||||||||
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 March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
U.S. | $ | 64,195 | $ | 87,331 | ||||||||||||||||||||
Other countries | 18,178 | 15,244 | ||||||||||||||||||||||
Total | $ | 82,373 | $ | 102,575 | ||||||||||||||||||||
Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements. | ||||||||||||||||||||||||
Major Customers | ||||||||||||||||||||||||
Revenue from major customers, as a percentage of consolidated revenue, is as follows: | ||||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Customer A | 12 | % | * | |||||||||||||||||||||
Customer B | 10.3 | % | 15.4 | % | ||||||||||||||||||||
* This customer did not account for more than 10% of revenue during the period. | ||||||||||||||||||||||||
Over 93% of the revenue from these customers was for sales in the Energy Chemistry Technologies segment. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
EPA Environmental Proceeding | |
On January 9, 2015, FC Pro, LLC (“FC Pro”), a wholly-owned subsidiary of the Company, received a letter and proposed consent agreement and final order from the United States Environmental Protection Agency (“EPA”) concerning alleged violations of the federal hazardous waste regulations at FC Pro’s specialty chemical blending facility in Waller, Texas. Specifically, EPA alleged that FC Pro failed to comply with certain notification, operating, and reporting requirements applicable to generators or large quantity generators of hazardous waste. FC Pro has resolved the alleged violations pursuant to a consent agreement and final order under which it did not admit or deny the allegations and agreed to pay an administrative penalty of $410,868, obtain an EPA identification number, and develop certain specified operating procedures. The consent agreement and final order has been signed by EPA and will become final upon being ratified by the regional judicial officer. Since this enforcement case was initiated, FC Pro has made changes to its operating practices at its Waller facility that it believes has resulted in it no longer generating hazardous waste at that facility. | |
The amount of the civil penalty has been recorded as selling, general and administrative expense during the three months ended March 31, 2015. | |
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 significant 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 a major financial institution and balances often exceed insurable amounts. |
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014 (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 months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. | |
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 and New Accounting Requirements and Disclosures | Application of New Accounting Standards |
Effective January 1, 2015, the Company adopted the accounting guidance in Accounting Standards Update (“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. Implementation of this standard did not have a material effect on the consolidated financial statements. | |
Effective January 1, 2015, the Company adopted the accounting guidance in 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. Implementation of this standard did not have a material effect on the consolidated financial statements or the Company's current awards under its existing stock-based compensation plans. | |
(b) New Accounting Requirements and Disclosures | |
In May 2014, the Financial Accounting Standards Board (“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 January 2015, the FASB issued ASU No. 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” This ASU eliminates from generally accepted accounting principles (“GAAP”) the concept of extraordinary items and the need for an entity to separately classify, present, and disclose extraordinary events and transactions, while retaining certain presentation and disclosure guidance for items that are unusual in nature or occur infrequently. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and may be applied retrospectively, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. | |
In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the consolidation analysis performed on certain types of legal entities. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and may be applied retrospectively, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. | |
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported on the Consolidated Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period with early application permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Components of supplemental cash flow information | Supplemental cash flow information is as follows (in thousands): | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Supplemental non-cash investing and financing activities: | ||||||||
Value of common stock issued in acquisitions | $ | 1,014 | $ | 1,750 | ||||
Value of common stock issued in payment of accrued liability | — | 600 | ||||||
Exercise of stock options by common stock surrender | 66 | 1,005 | ||||||
Supplemental cash payment information: | ||||||||
Interest paid | $ | 309 | $ | 360 | ||||
Income taxes paid | 1,911 | 2,039 | ||||||
Revenue_Tables
Revenue (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Revenue [Abstract] | |||||||||
Differentiation of revenue and cost of revenue | Revenue and cost of revenue by source are as follows (in thousands): | ||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue: | |||||||||
Products | $ | 66,160 | $ | 82,406 | |||||
Rentals | 11,824 | 13,923 | |||||||
Services | 4,389 | 6,246 | |||||||
$ | 82,373 | $ | 102,575 | ||||||
Cost of revenue: | |||||||||
Products | $ | 45,624 | $ | 47,732 | |||||
Rentals | 6,285 | 6,513 | |||||||
Services | 2,042 | 2,715 | |||||||
Depreciation | 1,895 | 1,934 | |||||||
$ | 55,846 | $ | 58,894 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components of Inventory | Inventories are as follows (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Raw materials | $ | 55,492 | $ | 31,581 | ||||
Work-in-process | 3,211 | 3,129 | ||||||
Finished goods | 39,459 | 51,248 | ||||||
Inventories | $ | 98,162 | $ | 85,958 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of property and equipment | Property and equipment are as follows (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Land | $ | 7,122 | $ | 6,780 | |||||
Buildings and leasehold improvements | 33,933 | 33,765 | |||||||
Machinery, equipment and rental tools | 85,108 | 80,731 | |||||||
Equipment in progress | 4,429 | 7,299 | |||||||
Furniture and fixtures | 2,619 | 2,528 | |||||||
Transportation equipment | 6,959 | 6,566 | |||||||
Computer equipment and software | 10,322 | 7,605 | |||||||
Property and equipment | 150,492 | 145,274 | |||||||
Less accumulated depreciation | (62,253 | ) | (59,163 | ) | |||||
Property and equipment, net | $ | 88,239 | $ | 86,111 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 Chemistry Technologies | Consumer and Industrial Chemistry Technologies | Teledrift® | Production Technologies | Total | ||||||||||||||||
Balance at December 31, 2014 | $ | 36,318 | $ | 19,480 | $ | 15,333 | $ | — | $ | 71,131 | ||||||||||
Addition upon acquisition of IAL | — | — | — | 1,689 | 1,689 | |||||||||||||||
Balance at March 31, 2015 | $ | 36,318 | $ | 19,480 | $ | 15,333 | $ | 1,689 | $ | 72,820 | ||||||||||
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facility (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Components of long-term debt | Long-term debt is as follows (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Long-term debt: | ||||||||
Borrowings under revolving credit facility | $ | 17,274 | $ | 8,500 | ||||
Term loan | 30,756 | 35,541 | ||||||
Total long-term debt | 48,030 | 44,041 | ||||||
Less current portion of long-term debt | (24,417 | ) | (18,643 | ) | ||||
Long-term debt, less current portion | $ | 23,613 | $ | 25,398 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) - Basic and Diluted | $ | (1,515 | ) | $ | 12,018 | ||||
Weighted average common shares outstanding - Basic | 54,448 | 53,948 | |||||||
Assumed conversions: | |||||||||
Incremental common shares from stock warrants | — | 486 | |||||||
Incremental common shares from stock options | — | 949 | |||||||
Incremental common shares from restricted stock units | — | 15 | |||||||
Weighted average common shares outstanding - Diluted | 54,448 | 55,398 | |||||||
Basic earnings (loss) per common share | $ | (0.03 | ) | $ | 0.22 | ||||
Diluted earnings (loss) per common share | $ | (0.03 | ) | $ | 0.22 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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): | |||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Term loan | $ | 30,756 | $ | 30,756 | $ | 35,541 | $ | 35,541 | ||||||||
Borrowings under revolving credit facility | 17,274 | 17,274 | 8,500 | 8,500 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
Federal statutory tax rate | 35 | % | 35 | % | |||||
State income taxes, net of federal benefit | 5.4 | 2.3 | |||||||
Non-US income taxed at different rates | (23.6 | ) | — | ||||||
Non-deductible expenses | 5.4 | 0.1 | |||||||
Domestic production activities deduction | (1.1 | ) | (2.7 | ) | |||||
Effective income tax rate | 21.1 | % | 34.7 | % | |||||
Schedule of deferred tax assets and liabilities | Deferred taxes are presented in the balance sheets as follows (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Current deferred tax assets | $ | 1,799 | $ | 2,696 | |||||
Non-current deferred tax assets | 13,486 | 12,907 | |||||||
Non-current deferred tax liabilities | (23,297 | ) | (25,982 | ) | |||||
Net deferred tax assets (liabilities) | $ | (8,012 | ) | $ | (10,379 | ) |
Business_Segment_Geographic_an1
Business Segment, Geographic and Major Customer Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 March 31, | Energy Chemistry Technologies | Consumer and Industrial Chemistry Technologies | Drilling Technologies | Production Technologies | Corporate and | Total | ||||||||||||||||||
Other | ||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 46,643 | $ | 13,463 | $ | 18,694 | $ | 3,573 | $ | — | $ | 82,373 | ||||||||||||
Gross margin | 16,100 | 3,706 | 5,991 | 730 | — | 26,527 | ||||||||||||||||||
Income (loss) from operations | 6,821 | 2,381 | (637 | ) | (539 | ) | (9,315 | ) | (1,289 | ) | ||||||||||||||
Depreciation and amortization | 1,204 | 552 | 2,319 | 125 | 370 | 4,570 | ||||||||||||||||||
Total assets | 152,423 | 92,438 | 141,229 | 25,176 | 3,741 | 415,007 | ||||||||||||||||||
Capital expenditures | 2,361 | 22 | 2,124 | 638 | 445 | 5,590 | ||||||||||||||||||
2014 | ||||||||||||||||||||||||
Net revenue from external customers | $ | 62,377 | $ | 13,030 | $ | 24,901 | $ | 2,267 | $ | — | $ | 102,575 | ||||||||||||
Gross margin | 29,220 | 4,033 | 9,788 | 640 | — | 43,681 | ||||||||||||||||||
Income (loss) from operations | 21,623 | 2,335 | 3,317 | (79 | ) | (8,398 | ) | 18,798 | ||||||||||||||||
Depreciation and amortization | 1,067 | 433 | 2,437 | 70 | 212 | 4,219 | ||||||||||||||||||
Total assets | 137,638 | 93,217 | 136,141 | 14,864 | 8,656 | 390,516 | ||||||||||||||||||
Capital expenditures | 1,386 | 14 | 3,296 | 61 | 233 | 4,990 | ||||||||||||||||||
Revenue by geographic location | Revenue by geographic location is as follows (in thousands): | |||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
U.S. | $ | 64,195 | $ | 87,331 | ||||||||||||||||||||
Other countries | 18,178 | 15,244 | ||||||||||||||||||||||
Total | $ | 82,373 | $ | 102,575 | ||||||||||||||||||||
Revenue by Major Customer | Revenue from major customers, as a percentage of consolidated revenue, is as follows: | |||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Customer A | 12 | % | * | |||||||||||||||||||||
Customer B | 10.3 | % | 15.4 | % | ||||||||||||||||||||
* This customer did not account for more than 10% of revenue during the period. |
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Details) | Mar. 31, 2015 |
country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries Flotek actively markets products and services, over 20 countries | 20 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 27, 2015 | Apr. 02, 2014 | Jan. 02, 2014 |
IAL [Member] | |||
Business Acquisition [Line Items] | |||
Percent of membership interests acquired | 100.00% | ||
Consideration transferred, cash payments | $1.30 | ||
Consideration transferred, common stock issued, shares | 60,024 | ||
SiteLark [Member] | |||
Business Acquisition [Line Items] | |||
Percent of membership interests acquired | 100.00% | ||
Consideration transferred, cash payments | 0.4 | ||
Consideration transferred, common stock issued, shares | 5,327 | ||
EOGA [Member] | |||
Business Acquisition [Line Items] | |||
Percent of membership interests acquired | 100.00% | ||
Consideration transferred, cash payments | $5.30 | ||
Consideration transferred, common stock issued, shares | 94,354 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental non-cash investing and financing activities: | ||
Value of common stock issued in acquisitions | $1,014 | $1,750 |
Value of common stock issued in payment of accrued liability | 0 | 600 |
Exercise of stock options by common stock surrender | 66 | 1,005 |
Supplemental cash payment information: | ||
Interest paid | 309 | 360 |
Income taxes paid | $1,911 | $2,039 |
Revenue_Details
Revenue (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Products | $66,160 | $82,406 |
Rentals | 11,824 | 13,923 |
Services | 4,389 | 6,246 |
Total revenue | 82,373 | 102,575 |
Cost of revenue: | ||
Products | 45,624 | 47,732 |
Rentals | 6,285 | 6,513 |
Services | 2,042 | 2,715 |
Depreciation | 1,895 | 1,934 |
Total cost of revenue | $55,846 | $58,894 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Components of Inventory | ||
Raw materials | $55,492 | $31,581 |
Work-in-process | 3,211 | 3,129 |
Finished goods | 39,459 | 51,248 |
Inventories | $98,162 | $85,958 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Components of Property, Plant and Equipment | ||
Land | $7,122 | $6,780 |
Buildings and leasehold improvements | 33,933 | 33,765 |
Machinery, equipment and rental tools | 85,108 | 80,731 |
Equipment in progress | 4,429 | 7,299 |
Furniture and fixtures | 2,619 | 2,528 |
Property and equipment | 150,492 | 145,274 |
Less accumulated depreciation | -62,253 | -59,163 |
Property and equipment, net | 88,239 | 86,111 |
Transportation equipment [Member] | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 6,959 | 6,566 |
Computer equipment and software [Member] | ||
Components of Property, Plant and Equipment | ||
Property and equipment | $10,322 | $7,605 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense, inclusive of expense captured in cost of revenue | $3.40 | $3 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Goodwill [Line Items] | |
Impairments of goodwill recognized | $0 |
IAL [Member] | |
Goodwill [Line Items] | |
Goodwill acquired | 1,689,000 |
Production Technologies [Member] | IAL [Member] | |
Goodwill [Line Items] | |
Goodwill acquired | $1,689,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Carrying Value of Goodwill (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Roll Forward] | ||
Balance at December 31, 2014 | $71,131 | |
Balance at March 31, 2015 | 72,820 | 71,131 |
IAL [Member] | ||
Goodwill [Roll Forward] | ||
Addition upon acquisition of IAL | 1,689 | |
Energy Chemistry Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2014 | 36,318 | |
Balance at March 31, 2015 | 36,318 | 36,318 |
Energy Chemistry Technologies [Member] | IAL [Member] | ||
Goodwill [Roll Forward] | ||
Addition upon acquisition of IAL | 0 | |
Consumer and Industrial Chemistry Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2014 | 19,480 | |
Balance at March 31, 2015 | 19,480 | 19,480 |
Consumer and Industrial Chemistry Technologies [Member] | IAL [Member] | ||
Goodwill [Roll Forward] | ||
Addition upon acquisition of IAL | 0 | |
Teledrift [Member] | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2014 | 15,333 | |
Balance at March 31, 2015 | 15,333 | 15,333 |
Teledrift [Member] | IAL [Member] | ||
Goodwill [Roll Forward] | ||
Addition upon acquisition of IAL | 0 | |
Production Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Balance at December 31, 2014 | 0 | |
Balance at March 31, 2015 | 1,689 | 0 |
Production Technologies [Member] | IAL [Member] | ||
Goodwill [Roll Forward] | ||
Addition upon acquisition of IAL | $1,689 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $1,200,000 | $1,200,000 |
Amortization of deferred financing costs | $86,000 | $106,000 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Long-term debt: | ||
Total long-term debt | $48,030 | $44,041 |
Less current portion of long-term debt | -24,417 | -18,643 |
Long-term debt, less current portion | 23,613 | 25,398 |
Revolving Credit Facility [Member] | ||
Long-term debt: | ||
Total long-term debt | 17,274 | 8,500 |
Term loan [Member] | ||
Long-term debt: | ||
Total long-term debt | $30,756 | $35,541 |
LongTerm_Debt_and_Credit_Facil3
Long-Term Debt and Credit Facility - Credit Facility (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 02, 2015 | |
Line of Credit Facility [Line Items] | |||
Credit facility, financial covenant, EBITDA to debt ratio, upper range | 1.1 | ||
Credit facility, financial covenant, funded debt to adjusted EBITDA ratio | 4 | ||
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 borrowed | 48,030,000 | 44,041,000 | |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Annual limit on capital expenditures | 34,000,000 | ||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 75,000,000 | ||
Credit facility, availability | 74,800,000 | ||
Credit facility, available borrowing capacity, net of outstanding borrowings | 57,500,000 | ||
Credit facility, commitment fee percentage | 0.25% | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed | 17,274,000 | 8,500,000 | |
Letter of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 10,000,000 | ||
Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, face amount | 50,000,000 | ||
Amount paid on term loan due to covenant requirement | 3,000,000 | ||
Amount borrowed | 30,756,000 | 35,541,000 | |
Monthly principal payments | 600,000 | ||
PNC Bank Base Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Base lending rate | 3.25% | ||
Credit facility, amount outstanding | 6,300,000 | ||
Credit facility, interest rate at period end | 3.75% | ||
PNC Bank Base Rate [Member] | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, interest rate at period end | 4.50% | ||
Amount borrowed | 800,000 | ||
LIBOR [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, amount outstanding | 11,000,000 | ||
Credit facility, interest rate at period end | 1.68% | ||
LIBOR [Member] | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, interest rate at period end | 2.43% | ||
Amount borrowed | $30,000,000 | ||
Minimum [Member] | PNC Bank Base Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 0.50% | ||
Minimum [Member] | PNC Bank Base Rate [Member] | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 1.25% | ||
Minimum [Member] | LIBOR [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 1.50% | ||
Minimum [Member] | LIBOR [Member] | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 2.25% | ||
Maximum [Member] | PNC Bank Base Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 1.00% | ||
Maximum [Member] | PNC Bank Base Rate [Member] | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 1.75% | ||
Maximum [Member] | LIBOR [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 2.00% | ||
Maximum [Member] | LIBOR [Member] | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread | 2.75% |
Earnings_Per_Share_Antidilutiv
Earnings Per Share - Antidilutive Securities (Details) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from the computation of earnings per share | 1.5 |
Restricted Stock Units [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from the computation of earnings per share | 0.4 |
Earnings_Per_Share_Basic_and_D
Earnings Per Share - Basic and Diluted Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) - Basic and Diluted | ($1,515) | $12,018 |
Weighted average common shares outstanding - Basic | 54,448 | 53,948 |
Assumed conversions: | ||
Incremental common shares from warrants | 0 | 486 |
Incremental common shares from stock options | 0 | 949 |
Incremental common shares from restricted stock units | 0 | 15 |
Weighted average common shares outstanding - Diluted | 54,448 | 55,398 |
Basic earnings (loss) per common share (in dollars per share) | ($0.03) | $0.22 |
Diluted earnings (loss) per common share (in dollars per share) | ($0.03) | $0.22 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Disclosures (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrowings under revolving credit facility | $17,274 | $8,500 |
Carrying Value [Member] | Term loan [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | 30,756 | 35,541 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrowings under revolving credit facility | 17,274 | 8,500 |
Fair Value [Member] | Term loan [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term debt | $30,756 | $35,541 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Filinggroup | |
Income Tax Disclosure [Abstract] | |
Number of U.S. tax return filing groups | 2 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 35.00% | 35.00% |
State income taxes, net of federal benefit | 5.40% | 2.30% |
Non-US income taxed at different rates | -23.60% | 0.00% |
Non-deductible expenses | 5.40% | 0.10% |
Domestic production activities deduction | -1.10% | -2.70% |
Effective income tax rate | 21.10% | 34.70% |
Income_Taxes_Deferred_Taxes_De
Income Taxes - Deferred Taxes (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $1,799 | $2,696 |
Non-current deferred tax assets | 13,486 | 12,907 |
Non-current deferred tax liabilities | -23,297 | -25,982 |
Net deferred tax assets (liabilities) | ($8,012) | ($10,379) |
Convertible_Preferred_Stock_an1
Convertible Preferred Stock and Stock Warrants (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Feb. 07, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Warrants and Rights Note Disclosure [Abstract] | |||
Stock warrants exercised, shares | 1,277,250 | ||
Warrants exercised, price per share (in dollars per share) | $1.21 | ||
Proceeds from exercise of stock warrants | $1,500 | $0 | $1,545 |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Nov. 30, 2012 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $25,000,000 | |
Repurchase of common stock, shares | 180,190 | |
Repurchase of common stock, value | 2,651,000 | |
Repurchase of common stock, average price pre share (in dollars per share) | $14.71 | |
Stock repurchase program, remaining amount | $13,000,000 |
Business_Segment_Geographic_an2
Business Segment, Geographic and Major Customer Information - Reportable Segments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
segment | |||
Segment Reporting Information [Line Items] | |||
Number of segments | 4 | ||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | $82,373 | $102,575 | |
Gross margin | 26,527 | 43,681 | |
Income (loss) from operations | -1,289 | 18,798 | |
Depreciation and amortization | 4,570 | 4,219 | |
Total assets | 415,007 | 390,516 | 423,276 |
Capital expenditures | 5,590 | 4,990 | |
Energy Chemistry Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 46,643 | 62,377 | |
Gross margin | 16,100 | 29,220 | |
Income (loss) from operations | 6,821 | 21,623 | |
Depreciation and amortization | 1,204 | 1,067 | |
Total assets | 152,423 | 137,638 | |
Capital expenditures | 2,361 | 1,386 | |
Consumer and Industrial Chemistry Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 13,463 | 13,030 | |
Gross margin | 3,706 | 4,033 | |
Income (loss) from operations | 2,381 | 2,335 | |
Depreciation and amortization | 552 | 433 | |
Total assets | 92,438 | 93,217 | |
Capital expenditures | 22 | 14 | |
Drilling Products [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 18,694 | 24,901 | |
Gross margin | 5,991 | 9,788 | |
Income (loss) from operations | -637 | 3,317 | |
Depreciation and amortization | 2,319 | 2,437 | |
Total assets | 141,229 | 136,141 | |
Capital expenditures | 2,124 | 3,296 | |
Production Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 3,573 | 2,267 | |
Gross margin | 730 | 640 | |
Income (loss) from operations | -539 | -79 | |
Depreciation and amortization | 125 | 70 | |
Total assets | 25,176 | 14,864 | |
Capital expenditures | 638 | 61 | |
Corporate and Other [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 0 | 0 | |
Gross margin | 0 | 0 | |
Income (loss) from operations | -9,315 | -8,398 | |
Depreciation and amortization | 370 | 212 | |
Total assets | 3,741 | 8,656 | |
Capital expenditures | $445 | $233 |
Business_Segment_Geographic_an3
Business Segment, Geographic and Major Customer Information - Geographic Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue by geographic location | ||
Revenue | $82,373 | $102,575 |
U.S. [Member] | ||
Revenue by geographic location | ||
Revenue | 64,195 | 87,331 |
Other countries [Member] | ||
Revenue by geographic location | ||
Revenue | $18,178 | $15,244 |
Business_Segment_Geographic_an4
Business Segment, Geographic and Major Customer Information - Major Customer Information (Details) (Customer Concentration Risk [Member], Sales [Member]) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Customer A [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue by major customers | 12.00% | |
Customer B [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue by major customers | 10.30% | 15.40% |
Major Customers [Member] | Energy Chemistry Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue by major customers | 93.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Hazardous Waste Management [Member], FC Pro, LLC [Member], Selling, General and Administrative Expenses [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Hazardous Waste Management [Member] | FC Pro, LLC [Member] | Selling, General and Administrative Expenses [Member] | |
Loss Contingencies [Line Items] | |
Civil penalty | $410,868 |