Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FLOTEK INDUSTRIES INC/CN/ | |
Entity Central Index Key | 928,054 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 53,828,748 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,480 | $ 2,208 |
Accounts receivable, net of allowance for doubtful accounts of $874 and $1,189 at March 31, 2016 and December 31, 2015, respectively | 45,631 | 49,197 |
Inventories | 81,084 | 85,492 |
Income taxes receivable | 14,948 | 4,700 |
Deferred tax assets, net | 4,139 | 2,649 |
Other current assets | 6,148 | 7,496 |
Total current assets | 154,430 | 151,742 |
Property and equipment, net | 78,337 | 91,913 |
Goodwill | 72,820 | 72,820 |
Deferred tax assets, net | 3 | 17,229 |
Other intangible assets, net | 58,992 | 69,386 |
TOTAL ASSETS | 364,582 | 403,090 |
Current liabilities: | ||
Accounts payable | 25,244 | 19,444 |
Accrued liabilities | 9,676 | 12,894 |
Income taxes payable | 197 | 2,263 |
Interest payable | 141 | 111 |
Current portion of long-term debt | 44,765 | 32,291 |
Total current liabilities | 80,023 | 67,003 |
Long-term debt, less current portion | 16,470 | 18,255 |
Deferred tax liabilities, net | 1,755 | 23,823 |
Total liabilities | $ 98,248 | $ 109,081 |
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; 56,715,304 shares issued and 53,726,328 shares outstanding at March 31, 2016; 56,220,214 shares issued and 53,536,101 shares outstanding at December 31, 2015 | 6 | 6 |
Additional paid-in capital | 275,797 | 273,451 |
Accumulated other comprehensive income (loss) | (919) | (1,237) |
Retained earnings | 9,115 | 39,300 |
Treasury stock, at cost; 1,850,173 and 1,784,897 shares at March 31, 2016 and December 31, 2015, respectively | (18,023) | (17,869) |
Flotek Industries, Inc. stockholders’ equity | 265,976 | 293,651 |
Noncontrolling interests | 358 | 358 |
Total equity | 266,334 | 294,009 |
TOTAL LIABILITIES AND EQUITY | $ 364,582 | $ 403,090 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 874 | $ 1,189 |
Cumulative convertible preferred stock, at par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
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) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 56,715,304 | 56,220,214 |
Common stock, shares outstanding | 53,726,328 | 53,536,101 |
Treasury stock, shares | 1,850,173 | 1,784,897 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 72,289 | $ 82,373 |
Cost of revenue | 47,360 | 55,846 |
Gross profit | 24,929 | 26,527 |
Expenses: | ||
Selling, general and administrative | 25,453 | 23,568 |
Depreciation and amortization | 2,798 | 2,676 |
Research and development | 2,256 | 1,572 |
Impairment of inventory and long-lived assets | 40,435 | 0 |
Total expenses | 70,942 | 27,816 |
Loss from operations | (46,013) | (1,289) |
Other expense: | ||
Interest expense, net | (489) | (407) |
Other expense, net | (120) | (225) |
Total other expense | (609) | (632) |
Loss before income taxes | (46,622) | (1,921) |
Income tax benefit | 16,437 | 406 |
Net loss | $ (30,185) | $ (1,515) |
Loss per common share: | ||
Basic loss per common share (in dollars per share) | $ (0.55) | $ (0.03) |
Diluted loss per common share (in dollars per share) | $ (0.55) | $ (0.03) |
Weighted average common shares: | ||
Weighted average common shares used in computing basic loss per common share (in shares) | 54,744 | 54,448 |
Weighted average common shares used in computing diluted loss per common share (in shares) | 54,744 | 54,448 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (30,185) | $ (1,515) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 318 | (240) |
Comprehensive income (loss) | $ (29,867) | $ (1,755) |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (30,185) | $ (1,515) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Impairment of inventory and long-lived assets | 40,435 | 0 |
Depreciation and amortization | 4,289 | 4,570 |
Amortization of deferred financing costs | 87 | 86 |
Gain on sale of assets | (468) | (1,223) |
Stock compensation expense | 2,365 | 3,462 |
Deferred income tax benefit | (6,898) | (2,367) |
Reduction in (excess) tax benefit related to share-based awards | 365 | (87) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | 3,099 | 22,484 |
Inventories | (11,984) | (12,065) |
Income taxes receivable | (10,308) | 0 |
Other current assets | 242 | 644 |
Accounts payable | 6,274 | (4,618) |
Accrued liabilities | (2,078) | (3,774) |
Income taxes payable | (1,817) | 618 |
Interest payable | 30 | 13 |
Net cash (used in) provided by operating activities | (6,552) | 6,228 |
Cash flows from investing activities: | ||
Capital expenditures | (4,213) | (5,590) |
Proceeds from sale of assets | 593 | 1,315 |
Payments for acquisitions, net of cash acquired | 0 | (1,250) |
Purchase of patents and other intangible assets | (132) | (115) |
Net cash used in investing activities | (3,752) | (5,640) |
Cash flows from financing activities: | ||
Repayments of indebtedness | (1,785) | (4,786) |
Borrowings on revolving credit facility | 96,000 | 112,151 |
Repayments on revolving credit facility | (83,526) | (103,376) |
Reduction in (excess) tax benefit related to share-based awards | (365) | 87 |
Purchase of treasury stock related to share-based awards | (154) | (1,055) |
Proceeds from sale of common stock | 212 | 256 |
Repurchase of common stock | 0 | (2,651) |
Proceeds from exercise of stock options | 134 | 22 |
Proceeds from noncontrolling interest | 0 | 7 |
Net cash provided by financing activities | 10,516 | 655 |
Effect of changes in exchange rates on cash and cash equivalents | 60 | (10) |
Net increase in cash and cash equivalents | 272 | 1,233 |
Cash and cash equivalents at the beginning of period | 2,208 | 1,266 |
Cash and cash equivalents at the end of period | $ 2,480 | $ 2,499 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statement of Equity - 3 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2015 | $ 294,009 | $ 6 | $ (17,869) | $ 273,451 | $ (1,237) | $ 39,300 | $ 358 |
Beginning balance, shares at Dec. 31, 2015 | 56,220 | 1,785 | |||||
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net loss | (30,185) | (30,185) | |||||
Foreign currency translation adjustment | 318 | 318 | |||||
Stock issued under employee stock purchase plan | 212 | 212 | |||||
Stock issued in payment of stock purchase plan, shares | (34) | ||||||
Stock options exercised | 134 | 134 | |||||
Stock options exercised, shares | 85 | ||||||
Restricted stock granted, shares | 410 | ||||||
Restricted stock forfeited, shares | 78 | ||||||
Treasury stock purchased | (154) | $ (154) | |||||
Treasury stock purchased, shares | 21 | ||||||
Stock compensation expense | 2,365 | 2,365 | |||||
Reduction in tax benefit related to share-based awards | (365) | (365) | |||||
Ending balance at Mar. 31, 2016 | $ 266,334 | $ 6 | $ (18,023) | $ 275,797 | $ (919) | $ 9,115 | $ 358 |
Ending balance, shares at Mar. 31, 2016 | 56,715 | 1,850 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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. The Company’s strategic focus includes energy related chemistry technologies, drilling and production technologies, and consumer and industrial chemistry technologies. Within its energy related 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, major and independent oil and gas exploration and production companies, national and state-owned oil companies, and international supply chain management 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 Florida, Louisiana, New Mexico, North Dakota, Oklahoma, Colorado, 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 representation 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 Condensed 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 (“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 (“U.S. 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, 2015 (“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, 2016 , are not necessarily indicative of the results to be expected for the year ending December 31, 2016 . Use of Estimates The preparation of financial statements in conformity with U.S. 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 (loss). |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Application of New Accounting Standards Effective January 1, 2016, the Company adopted the accounting guidance in Accounting Standards Update (“ASU”) No. 2015-01, “ Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ” This ASU eliminates from U.S. 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. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2016, the Company adopted the accounting guidance in 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. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2016, the Company adopted the accounting guidance in 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. In addition, the Company adopted the accounting guidance in ASU No. 2015-15, which provides additional guidance related to the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. An entity may present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Implementation of these standards did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2016, the Company adopted the accounting guidance in ASU No. 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments .” This standard replaces the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively with a requirement that an acquirer recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the guidance. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. 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. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU No. 2016-08, which improves the operability and understandability of the implementation guidance on principal versus agent considerations. The Company is currently evaluating the impact these pronouncements will have on the consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory .” This standard requires management to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and should 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 November 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes .” This standard eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, “ Leases .” This standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The pronouncement is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and should be applied using a modified retrospective transition approach, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting .” This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. |
Impairment of Inventory and Lon
Impairment of Inventory and Long-Lived Assets | 3 Months Ended |
Mar. 31, 2016 | |
Asset Impairment Charges [Abstract] | |
Impairment of Inventory and Long-Lived Assets | Impairment of Inventory and Long-Lived Assets During the three months ended March 31, 2016 , as a result of changes in the oil and gas industry that have occurred since the beginning of 2016 and their corresponding impact on the Company’s business outlook, the Company evaluated the direction of its business activities. Crude oil prices, which appeared to have stabilized during the fourth quarter of 2015, fell further during the first quarter of 2016, decreasing approximately 21% from average prices seen in the fourth quarter of 2015. The U.S. drilling rig count declined from 698 at December 31, 2015 to 450 at April 1, 2016, a decline of 35.5% . Due to the decreased rig activity and its impact on management’s expectations for future market activity, the Company further refocused operations of its Drilling Technologies segment. The Company decided to exit the business of building and repairing motors in all domestic markets. In addition, changes in drilling technique, including further escalation of the move to a dominance of pad drilling, reduced the marketability of certain other inventory items. The focus of the Production Technologies segment is being shifted to its new technologies for electric submersible pumps for the oil and gas industry and for hydraulic pumping units. Inventory associated with older technologies for these items has been evaluated for impairment. As a result of these changes in focus and projected declines in asset utilization, the Company recorded a pre-tax impairment of inventories as noted below. Changes in the business climate noted above and increasing operating losses experienced within the Drilling Technologies and Production Technologies segments during the three months ended March 31, 2016 caused the Company to test asset groups within these two segments for recoverability. Recoverability of the carrying value of the asset groups was based upon estimated future cash flows while taking into consideration various assumptions and estimates, including future use of the assets, remaining useful life of the assets, and eventual disposition of the assets. Undiscounted estimated cash flows of two asset groups associated with domestic operations in the Drilling Technologies segment did not exceed the carrying value of the respective asset groups. Therefore, the Company performed an analysis of discounted future cash flows to determine the fair value of each of these two asset groups. As a result of this testing, the Company recorded a pre-tax impairment of long-lived assets as noted below. The Company recorded impairment charges during the three months ended March 31, 2016 , as follows (in thousands): Drilling Technologies: Inventories $ 12,653 Long-lived assets: Property and equipment 14,642 Intangible assets other than goodwill 9,227 Production Technologies: Inventories 3,913 Total Impairment $ 40,435 Based on the changes in the business climate discussed above and increasing operating losses experienced during the three months ended March 31, 2016 , goodwill within the Teledrift and Production Technologies reporting units was tested for impairment. However, no impairments of goodwill were recorded based upon this testing. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition 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. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Supplemental non-cash investing and financing activities: Value of common stock issued in acquisitions $ — $ 1,014 Exercise of stock options by common stock surrender — 66 Supplemental cash payment information: Interest paid $ 382 $ 309 Income taxes paid, net of refunds 2,264 1,911 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Revenue: Products $ 65,874 $ 66,160 Rentals 4,052 11,824 Services 2,363 4,389 $ 72,289 $ 82,373 Cost of revenue: Products $ 42,474 $ 45,624 Rentals 1,299 6,285 Services 2,096 2,042 Depreciation 1,491 1,895 $ 47,360 $ 55,846 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are as follows (in thousands): March 31, 2016 December 31, 2015 Raw materials $ 35,616 $ 44,997 Work-in-process 3,838 3,069 Finished goods 41,630 37,426 Inventories $ 81,084 $ 85,492 During the three months ended March 31, 2016, the Company recorded an inventory impairment of $16.6 million (see Note 3). |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are as follows (in thousands): March 31, 2016 December 31, 2015 Land $ 6,907 $ 7,145 Buildings and leasehold improvements 34,650 34,351 Machinery, equipment and rental tools 73,906 85,611 Equipment in progress 13,513 12,304 Furniture and fixtures 2,706 2,749 Transportation equipment 7,208 7,462 Computer equipment and software 11,309 11,382 Property and equipment 150,199 161,004 Less accumulated depreciation (71,862 ) (69,091 ) Property and equipment, net $ 78,337 $ 91,913 During the three months ended March 31, 2016, the Company recorded a fixed asset impairment of $14.6 million (see Note 3). Depreciation expense, including expense recorded in cost of revenue, totaled $3.1 million and $3.4 million for the three months ended March 31, 2016 and 2015 , respectively. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 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, 2015 $ 36,318 $ 19,480 $ 15,333 $ 1,689 $ 72,820 Goodwill impairment recognized — — — — — Balance at March 31, 2016 $ 36,318 $ 19,480 $ 15,333 $ 1,689 $ 72,820 Goodwill within the Teledrift and Production Technologies reporting units was tested for impairment during the three months ended March 31, 2016. No impairments of goodwill were recognized during the three months ended March 31, 2016 and 2015 (see Note 3). |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets Other intangible assets are as follows (in thousands): March 31, 2016 December 31, 2015 Cost Accumulated Amortization Cost Accumulated Amortization Finite-lived intangible assets: Patents and technology $ 21,014 $ 6,150 $ 20,960 $ 5,809 Customer lists 43,540 15,345 52,607 14,640 Trademarks and brand names 7,109 3,526 7,191 3,360 Total finite-lived intangible assets acquired 71,663 25,021 80,758 23,809 Deferred financing costs 1,665 945 1,665 858 Total amortizable intangible assets 73,328 $ 25,966 82,423 $ 24,667 Indefinite-lived intangible assets: Trademarks and brand names 11,630 11,630 Total other intangible assets $ 84,958 $ 94,053 Carrying value: Other intangible assets, net $ 58,992 $ 69,386 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, 2016 and 2015 , respectively. During the three months ended March 31, 2016, the Company recorded an impairment of finite-lived intangible assets of $9.2 million (see Note 3). Amortization of deferred financing costs was $0.1 million and $0.1 million for the three months ended March 31, 2016 and 2015 , respectively. |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 December 31, 2015 Long-term debt: Borrowings under revolving credit facility $ 37,622 $ 25,148 Term loan 23,613 25,398 Total long-term debt 61,235 50,546 Less current portion of long-term debt (44,765 ) (32,291 ) Long-term debt, less current portion $ 16,470 $ 18,255 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, and 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. Effective March 31, 2016 , the Company entered into a Fifth Amendment to the Credit Facility under which the financial covenants to maintain a fixed charge coverage ratio and a ratio of funded debt to adjusted EBITDA were suspended until June 30, 2017. These financial covenants will be reinstated to require compliance with these ratios for the twelve-month period ending June 30, 2017, and continuing as of the last day of each fiscal quarter. The Fifth Amendment establishes a requirement to maintain certain minimum adjusted EBITDA levels for the periods ending September 30, 2016, December 31, 2016, and March 31, 2017. In addition, the Company is required to maintain under its revolving credit facility, a minimum monthly average undrawn availability of $10 million , including a requirement to continuously maintain $5 million of undrawn availability until June 30, 2017. The Fifth Amendment contains an annual limit on capital expenditures for 2016 of approximately $25 million . The annual capital expenditure limit returns to approximately $32 million beginning in the fiscal year 2017. Effective March 31, 2016 , the interest rate on all advances under the revolving credit facility and the term loan was increased by 1.0% . The interest rates disclosed below reflect the new rates. The Credit Facility includes a provision on the term loan 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, 2015 , there was no additional payment required based on this provision. 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 March 31, 2016 , eligible accounts receivable and inventory securing the revolving credit facility provided total borrowing capacity of $60.0 million under the revolving credit facility before $5 million of availability that must remain undrawn through June 30, 2017. Available borrowing capacity, net of outstanding borrowings and the $5 million of availability that must remain undrawn, was $17.4 million at March 31, 2016 . 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 1.5% to 2.0% or (b) between the London Interbank Offered Rate (LIBOR) plus 2.5% to 3.0% . PNC Bank’s base lending rate was 3.50% at March 31, 2016 . 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, 2016 , $37.6 million was outstanding under the revolving credit facility, with $7.6 million borrowed as base rate loans at an interest rate of 5.00% and $30.0 million borrowed as LIBOR loans at an interest rate of 2.94% . 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 Credit Facility. Rates range (a) between PNC Bank’s base lending rate plus 2.25% to 2.75% or (b) between LIBOR plus 3.25% to 3.75% . At March 31, 2016 , $23.6 million was outstanding under the term loan, with $0.6 million borrowed as base rate loans at an interest rate of 5.75% and $23.0 million borrowed as LIBOR loans at an interest rate of 3.69% . |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share Basic loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted loss per common share is calculated by dividing net 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 loss per share for the three months ended March 31, 2016 and 2015 , since including them would have an anti-dilutive effect on 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 loss per share calculations were 0.7 million stock options and 0.8 million restricted stock units for the three months ended March 31, 2016 and 1.5 million stock options and 0.4 million restricted stock units for the three months ended March 31, 2015 . Basic and diluted loss per common share are as follows (in thousands, except per share data): Three months ended March 31, 2016 2015 Net loss - Basic and Diluted $ (30,185 ) $ (1,515 ) Weighted average common shares outstanding - Basic 54,744 54,448 Assumed conversions: Incremental common shares from stock options — — Incremental common shares from restricted stock units — — Weighted average common shares outstanding - Diluted 54,744 54,448 Basic loss per common share $ (0.55 ) $ (0.03 ) Diluted loss per common share $ (0.55 ) $ (0.03 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 , or December 31, 2015 . The carrying value and estimated fair value of the Company’s long-term debt are as follows (in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Term loan $ 23,613 $ 23,613 $ 25,398 $ 25,398 Borrowings under revolving credit facility 37,622 37,622 25,148 25,148 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. During the three months ended March 31, 2016 , the Company recorded an impairment of $14.6 million for property and equipment and $9.2 million for other intangible assets (see Note 3). Loss on impairment is reported in operating expenses. No impairments of property and equipment or other intangible assets were recognized during the three months ended March 31, 2015 . No impairments of goodwill were recognized during the three months ended March 31, 2016 and 2015 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the year ended December 31, 2015, the Company restructured its legal entities such that there will be only one U.S. tax filing group filing a single U.S. consolidated federal income tax return beginning in 2016. Prior to 2016, the Company’s corporate organizational structure required the filing of two separate consolidated U.S. Federal income tax returns. Taxable income of one group could not be offset by tax attributes, including net operating losses, of the other group. A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: Three months ended March 31, 2016 2015 U.S. federal statutory tax rate (35.0 )% (35.0 )% State income taxes, net of federal benefit (1.2 ) (5.4 ) Non-U.S. income taxed at different rates 0.3 23.6 Non-deductible expenses — (5.4 ) Domestic production activities deduction — 1.1 Other 0.6 — Effective income tax rate (35.3 )% (21.1 )% Fluctuations in effective tax rates have historically been impacted by permanent tax differences with no associated income tax impact, changes in state apportionment factors, including the effect on state deferred tax assets and liabilities, and benefits of non-U.S. income taxed at lower rates. Changes in the effective tax rate during the three months ended March 31, 2016 included the Company not qualifying for the domestic production activities deduction. Deferred taxes are presented in the balance sheets as follows (in thousands): March 31, 2016 December 31, 2015 Current deferred tax assets $ 4,139 $ 2,649 Non-current deferred tax assets 3 17,229 Non-current deferred tax liabilities (1,755 ) (23,823 ) Net deferred tax assets (liabilities) $ 2,387 $ (3,945 ) |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 , the Company did not repurchase any shares of its outstanding common stock. 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. In June 2015, the Company’s Board of Directors authorized the repurchase of up to an additional $50 million of the Company’s common stock. Repurchases may be made in open market or through privately negotiated transactions. Through March 31, 2016 , the Company has not repurchased any of its common stock under this authorization. As of March 31, 2016 , the Company has $54.9 million remaining under its share repurchase programs. |
Business Segment, Geographic an
Business Segment, Geographic and Major Customer Information | 3 Months Ended |
Mar. 31, 2016 | |
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, Consumer and Industrial Chemistry 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, and industrial drilling activities. • Production Technologies assembles and markets production-related equipment, including the Petrovalve ® product line of rod pump components, hydraulic pumping units, 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 Other Total 2016 Net revenue from external customers $ 44,679 $ 19,133 $ 6,456 $ 2,021 $ — $ 72,289 Gross profit 18,769 5,025 1,025 110 — 24,929 Income (loss) from operations 8,013 3,389 (40,951 ) (5,430 ) (11,034 ) (46,013 ) Depreciation and amortization 1,244 510 1,821 218 496 4,289 Total assets 149,006 110,344 68,284 23,682 13,266 364,582 Capital expenditures 3,014 143 238 185 633 4,213 2015 Net revenue from external customers $ 46,643 $ 13,463 $ 18,694 $ 3,573 $ — $ 82,373 Gross profit 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 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, 2016 2015 U.S. $ 57,793 $ 64,195 Other countries 14,496 18,178 Total $ 72,289 $ 82,373 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, 2016 2015 Customer A 21.1 % 12.0 % Customer B 10.9 % 10.3 % Over 94% 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, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Class Action Litigation In November 2015, four putative securities class action lawsuits were filed in the United States District Court for the Southern District of Texas against the Company and certain of its officers. The lawsuits have been consolidated into a single case, and an amended complaint has been filed. The amended complaint asserts that the Company made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. The complaint seeks an award of damages in an unspecified amount on behalf of a putative class consisting of persons who purchased the Company’s common stock between October 23, 2014 and November 9, 2015, inclusive. In January 2016, three derivative lawsuits were filed, two in the District Court of Harris County, Texas (which have since been consolidated into one case) and one in the United States District Court for the Southern District of Texas, on behalf of the Company against certain of its officers and its current directors. The lawsuits allege violations of law, breaches of fiduciary duty, and unjust enrichment against the defendants. The Company believes the class action lawsuit and the derivative lawsuits are without merit, and it intends to vigorously defend against all claims asserted. Discovery has not yet commenced. At this time, the Company is unable to reasonably estimate the outcome of this litigation. In addition, the Company has received notice from the U.S. Securities and Exchange Commission that it has opened an inquiry related to similar issues to those raised in the above-described litigation. Other 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. 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 a major financial institution and balances often exceed insurable amounts. |
Organization and Significant 25
Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Unaudited Condensed 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 (“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 (“U.S. 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, 2015 (“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, 2016 , are not necessarily indicative of the results to be expected for the year ending December 31, 2016 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 (loss). |
Application of New Accounting Standards | Application of New Accounting Standards Effective January 1, 2016, the Company adopted the accounting guidance in Accounting Standards Update (“ASU”) No. 2015-01, “ Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ” This ASU eliminates from U.S. 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. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2016, the Company adopted the accounting guidance in 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. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2016, the Company adopted the accounting guidance in 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. In addition, the Company adopted the accounting guidance in ASU No. 2015-15, which provides additional guidance related to the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. An entity may present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Implementation of these standards did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2016, the Company adopted the accounting guidance in ASU No. 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments .” This standard replaces the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively with a requirement that an acquirer recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the guidance. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. 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. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU No. 2016-08, which improves the operability and understandability of the implementation guidance on principal versus agent considerations. The Company is currently evaluating the impact these pronouncements will have on the consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory .” This standard requires management to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and should 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 November 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes .” This standard eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, “ Leases .” This standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The pronouncement is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and should be applied using a modified retrospective transition approach, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting .” This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. |
Impairment of Inventory and L26
Impairment of Inventory and Long-Lived Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Impairment Charges [Abstract] | |
Schedule of asset impairment charges | he Company recorded impairment charges during the three months ended March 31, 2016 , as follows (in thousands): Drilling Technologies: Inventories $ 12,653 Long-lived assets: Property and equipment 14,642 Intangible assets other than goodwill 9,227 Production Technologies: Inventories 3,913 Total Impairment $ 40,435 |
Supplemental Cash Flow Inform27
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Supplemental non-cash investing and financing activities: Value of common stock issued in acquisitions $ — $ 1,014 Exercise of stock options by common stock surrender — 66 Supplemental cash payment information: Interest paid $ 382 $ 309 Income taxes paid, net of refunds 2,264 1,911 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Revenue: Products $ 65,874 $ 66,160 Rentals 4,052 11,824 Services 2,363 4,389 $ 72,289 $ 82,373 Cost of revenue: Products $ 42,474 $ 45,624 Rentals 1,299 6,285 Services 2,096 2,042 Depreciation 1,491 1,895 $ 47,360 $ 55,846 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of inventory | Inventories are as follows (in thousands): March 31, 2016 December 31, 2015 Raw materials $ 35,616 $ 44,997 Work-in-process 3,838 3,069 Finished goods 41,630 37,426 Inventories $ 81,084 $ 85,492 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of property and equipment | Property and equipment are as follows (in thousands): March 31, 2016 December 31, 2015 Land $ 6,907 $ 7,145 Buildings and leasehold improvements 34,650 34,351 Machinery, equipment and rental tools 73,906 85,611 Equipment in progress 13,513 12,304 Furniture and fixtures 2,706 2,749 Transportation equipment 7,208 7,462 Computer equipment and software 11,309 11,382 Property and equipment 150,199 161,004 Less accumulated depreciation (71,862 ) (69,091 ) Property and equipment, net $ 78,337 $ 91,913 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 $ 36,318 $ 19,480 $ 15,333 $ 1,689 $ 72,820 Goodwill impairment recognized — — — — — Balance at March 31, 2016 $ 36,318 $ 19,480 $ 15,333 $ 1,689 $ 72,820 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | Other intangible assets are as follows (in thousands): March 31, 2016 December 31, 2015 Cost Accumulated Amortization Cost Accumulated Amortization Finite-lived intangible assets: Patents and technology $ 21,014 $ 6,150 $ 20,960 $ 5,809 Customer lists 43,540 15,345 52,607 14,640 Trademarks and brand names 7,109 3,526 7,191 3,360 Total finite-lived intangible assets acquired 71,663 25,021 80,758 23,809 Deferred financing costs 1,665 945 1,665 858 Total amortizable intangible assets 73,328 $ 25,966 82,423 $ 24,667 Indefinite-lived intangible assets: Trademarks and brand names 11,630 11,630 Total other intangible assets $ 84,958 $ 94,053 Carrying value: Other intangible assets, net $ 58,992 $ 69,386 |
Long-Term Debt and Credit Fac33
Long-Term Debt and Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt is as follows (in thousands): March 31, 2016 December 31, 2015 Long-term debt: Borrowings under revolving credit facility $ 37,622 $ 25,148 Term loan 23,613 25,398 Total long-term debt 61,235 50,546 Less current portion of long-term debt (44,765 ) (32,291 ) Long-term debt, less current portion $ 16,470 $ 18,255 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per common share | Basic and diluted loss per common share are as follows (in thousands, except per share data): Three months ended March 31, 2016 2015 Net loss - Basic and Diluted $ (30,185 ) $ (1,515 ) Weighted average common shares outstanding - Basic 54,744 54,448 Assumed conversions: Incremental common shares from stock options — — Incremental common shares from restricted stock units — — Weighted average common shares outstanding - Diluted 54,744 54,448 Basic loss per common share $ (0.55 ) $ (0.03 ) Diluted loss per common share $ (0.55 ) $ (0.03 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying value and estimated fair value of long-term debt | The carrying value and estimated fair value of the Company’s long-term debt are as follows (in thousands): March 31, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Term loan $ 23,613 $ 23,613 $ 25,398 $ 25,398 Borrowings under revolving credit facility 37,622 37,622 25,148 25,148 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of effective tax rate to the U.S. federal statutory tax rate | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: Three months ended March 31, 2016 2015 U.S. federal statutory tax rate (35.0 )% (35.0 )% State income taxes, net of federal benefit (1.2 ) (5.4 ) Non-U.S. income taxed at different rates 0.3 23.6 Non-deductible expenses — (5.4 ) Domestic production activities deduction — 1.1 Other 0.6 — Effective income tax rate (35.3 )% (21.1 )% |
Schedule of deferred tax assets and liabilities | Deferred taxes are presented in the balance sheets as follows (in thousands): March 31, 2016 December 31, 2015 Current deferred tax assets $ 4,139 $ 2,649 Non-current deferred tax assets 3 17,229 Non-current deferred tax liabilities (1,755 ) (23,823 ) Net deferred tax assets (liabilities) $ 2,387 $ (3,945 ) |
Business Segment, Geographic 37
Business Segment, Geographic and Major Customer Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Other Total 2016 Net revenue from external customers $ 44,679 $ 19,133 $ 6,456 $ 2,021 $ — $ 72,289 Gross profit 18,769 5,025 1,025 110 — 24,929 Income (loss) from operations 8,013 3,389 (40,951 ) (5,430 ) (11,034 ) (46,013 ) Depreciation and amortization 1,244 510 1,821 218 496 4,289 Total assets 149,006 110,344 68,284 23,682 13,266 364,582 Capital expenditures 3,014 143 238 185 633 4,213 2015 Net revenue from external customers $ 46,643 $ 13,463 $ 18,694 $ 3,573 $ — $ 82,373 Gross profit 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 |
Revenue by geographic location | Revenue by geographic location is as follows (in thousands): Three months ended March 31, 2016 2015 U.S. $ 57,793 $ 64,195 Other countries 14,496 18,178 Total $ 72,289 $ 82,373 |
Revenue by major customer | Revenue from major customers, as a percentage of consolidated revenue, is as follows: Three months ended March 31, 2016 2015 Customer A 21.1 % 12.0 % Customer B 10.9 % 10.3 % |
Organization and Significant 38
Organization and Significant Accounting Policies (Details) | Mar. 31, 2016country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries Flotek actively markets products and services, over 20 countries | 20 |
Impairment of Inventory and L39
Impairment of Inventory and Long-Lived Assets - Schedule of asset impairment charges (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Inventories | $ 16,600,000 | |
Property and equipment | $ 14,600,000 | 0 |
Total Impairment | 40,435,000 | $ 0 |
Drilling Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 12,653,000 | |
Property and equipment | 14,642,000 | |
Intangible assets other than goodwill | 9,227,000 | |
Production Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | $ 3,913,000 |
Impairment of Inventory and L40
Impairment of Inventory and Long-Lived Assets - Additional Disclosures (Details) | 3 Months Ended | |||
Mar. 31, 2016USD ($)segment | Dec. 31, 2015rig | Mar. 31, 2015USD ($) | Apr. 01, 2016rig | |
Property, Plant and Equipment [Line Items] | ||||
Decrease in crude oil prices (percent) | (21.00%) | |||
Number of segments tested for goodwill | segment | 2 | |||
Impairments of goodwill | $ | $ 0 | $ 0 | ||
UNITED STATES | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of drilling rigs | rig | 698 | 450 | ||
Decrease in number of drilling rigs (percent) | (35.50%) |
Acquisition (Details)
Acquisition (Details) - IAL [Member] $ in Millions | Jan. 27, 2015USD ($)shares |
Business Acquisition [Line Items] | |
Percent of assets acquired | 100.00% |
Consideration transferred, cash payments | $ | $ 1.3 |
Consideration transferred, common stock issued, shares | shares | 60,024 |
Supplemental Cash Flow Inform42
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental non-cash investing and financing activities: | ||
Value of common stock issued in acquisitions | $ 0 | $ 1,014 |
Exercise of stock options by common stock surrender | 0 | 66 |
Supplemental cash payment information: | ||
Interest paid | 382 | 309 |
Income taxes paid, net of refunds | $ 2,264 | $ 1,911 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||
Products | $ 65,874 | $ 66,160 |
Rentals | 4,052 | 11,824 |
Services | 2,363 | 4,389 |
Total revenue | 72,289 | 82,373 |
Cost of revenue: | ||
Products | 42,474 | 45,624 |
Rentals | 1,299 | 6,285 |
Services | 2,096 | 2,042 |
Depreciation | 1,491 | 1,895 |
Total cost of revenue | $ 47,360 | $ 55,846 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Components of Inventory | |||
Raw materials | $ 35,616 | $ 44,997 | |
Work-in-process | 3,838 | 3,069 | |
Finished goods | 41,630 | 37,426 | |
Inventories | $ 81,084 | $ 85,492 | |
Inventory impairment | $ 16,600 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Components of Property, Plant and Equipment | ||
Land | $ 6,907 | $ 7,145 |
Buildings and leasehold improvements | 34,650 | 34,351 |
Machinery, equipment and rental tools | 73,906 | 85,611 |
Equipment in progress | 13,513 | 12,304 |
Furniture and fixtures | 2,706 | 2,749 |
Property and equipment | 150,199 | 161,004 |
Less accumulated depreciation | (71,862) | (69,091) |
Property and equipment, net | 78,337 | 91,913 |
Transportation equipment [Member] | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 7,208 | 7,462 |
Computer equipment and software [Member] | ||
Components of Property, Plant and Equipment | ||
Property and equipment | $ 11,309 | $ 11,382 |
Property and Equipment - Additi
Property and Equipment - Additional Disclosures (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Impairment of property and equipment | $ 14,600,000 | $ 0 |
Depreciation expense, inclusive of expense captured in cost of revenue | $ 3,100,000 | $ 3,400,000 |
Goodwill - Carrying Value of Go
Goodwill - Carrying Value of Goodwill (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 72,820,000 | |
Goodwill impairment recognized | 0 | $ 0 |
Balance, end of period | 72,820,000 | |
Energy Chemistry Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 36,318,000 | |
Goodwill impairment recognized | 0 | |
Balance, end of period | 36,318,000 | |
Consumer and Industrial Chemistry Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 19,480,000 | |
Goodwill impairment recognized | 0 | |
Balance, end of period | 19,480,000 | |
Teledrift [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 15,333,000 | |
Goodwill impairment recognized | 0 | |
Balance, end of period | 15,333,000 | |
Production Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 1,689,000 | |
Goodwill impairment recognized | 0 | |
Balance, end of period | $ 1,689,000 |
Goodwill - Additional Disclosur
Goodwill - Additional Disclosures (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairments of goodwill | $ 0 | $ 0 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of other intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Cost | $ 73,328 | $ 82,423 |
Finite-lived intangible assets, Accumulated Amortization | 25,966 | 24,667 |
Total other intangible assets | 84,958 | 94,053 |
Other intangible assets, net | 58,992 | 69,386 |
Acquired Intangible Assets [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Cost | 71,663 | 80,758 |
Finite-lived intangible assets, Accumulated Amortization | 25,021 | 23,809 |
Patents and technology | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Cost | 21,014 | 20,960 |
Finite-lived intangible assets, Accumulated Amortization | 6,150 | 5,809 |
Customer lists | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Cost | 43,540 | 52,607 |
Finite-lived intangible assets, Accumulated Amortization | 15,345 | 14,640 |
Trademarks and brand names | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Cost | 7,109 | 7,191 |
Finite-lived intangible assets, Accumulated Amortization | 3,526 | 3,360 |
Deferred financing costs | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Cost | 1,665 | 1,665 |
Finite-lived intangible assets, Accumulated Amortization | 945 | 858 |
Trademarks and brand names | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Trademarks and brand names | $ 11,630 | $ 11,630 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Disclosures (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Amortization of finite-lived intangible assets | $ 1,200,000 | $ 1,200,000 |
Impairment of finite-lived intangible assets | 9,200,000 | 0 |
Amortization of deferred financing costs | $ 87,000 | $ 86,000 |
Minimum [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 2 years | |
Maximum [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 20 years |
Long-Term Debt and Credit Fac51
Long-Term Debt and Credit Facility (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Long-term debt: | ||
Long-term debt | $ 61,235 | $ 50,546 |
Less current portion of long-term debt | (44,765) | (32,291) |
Long-term debt, less current portion | 16,470 | 18,255 |
Revolving Credit Facility [Member] | ||
Long-term debt: | ||
Long-term debt | 37,622 | 25,148 |
Term loan [Member] | ||
Long-term debt: | ||
Long-term debt | $ 23,613 | $ 25,398 |
Long-Term Debt and Credit Fac52
Long-Term Debt and Credit Facility - Additional Disclosures (Details) - USD ($) | May. 10, 2013 | Mar. 31, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | |||
Amount borrowed | $ 61,235,000 | $ 50,546,000 | |
Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed | 23,613,000 | $ 25,398,000 | |
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Limit on capital expenditures | 25,000,000 | ||
Annual limit on capital expenditures | $ 32,000,000 | ||
Increase in interest rate (percent) | 1.00% | ||
Covenant, percent of adjusted EBITDA which must be prepaid (percent) | 25.00% | ||
Credit facility ceiling value applicable to 25% of adjusting EBITDA which must be paid | $ 3,000,000 | ||
Covenant, maximum number of days from year end by which prepayment of 25% of adjusted EBITDA is due (in days) | 60 days | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | |
Minimum average undrawn availability during period | 10,000,000 | ||
Undrawn availability required | 5,000,000 | ||
Credit facility, availability | 60,000,000 | ||
Credit facility, available borrowing capacity, net of outstanding borrowings | $ 17,400,000 | ||
Credit facility, commitment fee percentage (percent) | 0.25% | ||
Credit facility, amount outstanding | $ 37,600,000 | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | PNC Bank Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Base lending rate (percent) | 3.50% | ||
Credit facility, amount outstanding | $ 7,600,000 | ||
Credit facility, interest rate at period end (percent) | 5.00% | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, amount outstanding | $ 30,000,000 | ||
Credit facility, interest rate at period end (percent) | 2.94% | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | Minimum [Member] | PNC Bank Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 1.50% | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 2.50% | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | Maximum [Member] | PNC Bank Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 2.00% | ||
Credit Facility | Line of Credit [Member] | Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 3.00% | ||
Credit Facility | Letter of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 10,000,000 | ||
Credit Facility | Term loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, face amount | 50,000,000 | ||
Monthly principal payments | $ 600,000 | ||
Amount borrowed | 23,600,000 | ||
Credit Facility | Term loan [Member] | PNC Bank Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed | $ 600,000 | ||
Debt, interest rate at period end | 5.75% | ||
Credit Facility | Term loan [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed | $ 23,000,000 | ||
Debt, interest rate at period end | 3.69% | ||
Credit Facility | Term loan [Member] | Minimum [Member] | PNC Bank Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 2.25% | ||
Credit Facility | Term loan [Member] | Minimum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 3.25% | ||
Credit Facility | Term loan [Member] | Maximum [Member] | PNC Bank Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 2.75% | ||
Credit Facility | Term loan [Member] | Maximum [Member] | LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility, variable percentage rate spread (percent) | 3.75% |
Loss Per Share - Additional Dis
Loss Per Share - Additional Disclosures (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of earnings per share (in shares) | 0.7 | 1.5 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of earnings per share (in shares) | 0.8 | 0.4 |
Loss Per Share - Basic and Dilu
Loss Per Share - Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Class of Stock [Line Items] | ||
Net loss - Basic and Diluted | $ (30,185) | $ (1,515) |
Weighted average common shares outstanding - Basic (in shares) | 54,744 | 54,448 |
Assumed conversions: | ||
Weighted average common shares outstanding - Diluted (in shares) | 54,744 | 54,448 |
Basic loss per common share (in dollars per share) | $ (0.55) | $ (0.03) |
Diluted loss per common share (in dollars per share) | $ (0.55) | $ (0.03) |
Stock Options [Member] | ||
Assumed conversions: | ||
Incremental common shares from stock options and restricted stock units (in shares) | 0 | 0 |
Restricted Stock Units [Member] | ||
Assumed conversions: | ||
Incremental common shares from stock options and restricted stock units (in shares) | 0 | 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Disclosures (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Cash equivalents | $ 0 | $ 0 | |
Impairment of property and equipment | 14,600,000 | $ 0 | |
Impairment intangible assets | 9,200,000 | 0 | |
Impairments of goodwill | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrowings under revolving credit facility | $ 37,622 | $ 25,148 |
Carrying Value [Member] | Term loan [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | 23,613 | 25,398 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrowings under revolving credit facility | 37,622 | 25,148 |
Fair Value [Member] | Term loan [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | $ 23,613 | $ 25,398 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - Filinggroup | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Number of U.S. tax return filing groups | 1 | 2 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory tax rate | (35.00%) | (35.00%) |
State income taxes, net of federal benefit | (1.20%) | (5.40%) |
Non-U.S. income taxed at different rates | 0.30% | 23.60% |
Non-deductible expenses | 0.00% | (5.40%) |
Domestic production activities deduction | (0.00%) | 1.10% |
Other | 0.60% | 0.00% |
Effective income tax rate | (35.30%) | (21.10%) |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $ 4,139 | $ 2,649 |
Non-current deferred tax assets | 3 | 17,229 |
Non-current deferred tax liabilities | (1,755) | (23,823) |
Net deferred tax assets | $ 2,387 | |
Net deferred tax liabilities | $ (3,945) |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | Nov. 30, 2012 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase of common stock | $ 154,000 | |||
Stock repurchase program, remaining amount | $ 54,900,000 | |||
Share Repurchase Program, November 2012 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount (up to) | $ 25,000,000 | |||
Repurchase of common stock during period (in shares) | 0 | 180,190 | ||
Repurchase of common stock | $ 2,700,000 | |||
Repurchase of common stock (in dollars per share) | $ 14.71 | |||
Share Repurchase Program, June 2015 [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount (up to) | $ 50,000,000 | |||
Repurchase of common stock (in shares) | 0 |
Business Segment, Geographic 61
Business Segment, Geographic and Major Customer Information - Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | $ 72,289 | $ 82,373 | |
Gross profit | 24,929 | 26,527 | |
Income (loss) from operations | (46,013) | (1,289) | |
Depreciation and amortization | 4,289 | 4,570 | |
Total assets | 364,582 | 415,007 | $ 403,090 |
Capital expenditures | 4,213 | 5,590 | |
Operating Segments [Member] | Energy Chemistry Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 44,679 | 46,643 | |
Gross profit | 18,769 | 16,100 | |
Income (loss) from operations | 8,013 | 6,821 | |
Depreciation and amortization | 1,244 | 1,204 | |
Total assets | 149,006 | 152,423 | |
Capital expenditures | 3,014 | 2,361 | |
Operating Segments [Member] | Consumer and Industrial Chemistry Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 19,133 | 13,463 | |
Gross profit | 5,025 | 3,706 | |
Income (loss) from operations | 3,389 | 2,381 | |
Depreciation and amortization | 510 | 552 | |
Total assets | 110,344 | 92,438 | |
Capital expenditures | 143 | 22 | |
Operating Segments [Member] | Drilling Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 6,456 | 18,694 | |
Gross profit | 1,025 | 5,991 | |
Income (loss) from operations | (40,951) | (637) | |
Depreciation and amortization | 1,821 | 2,319 | |
Total assets | 68,284 | 141,229 | |
Capital expenditures | 238 | 2,124 | |
Operating Segments [Member] | Production Technologies [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 2,021 | 3,573 | |
Gross profit | 110 | 730 | |
Income (loss) from operations | (5,430) | (539) | |
Depreciation and amortization | 218 | 125 | |
Total assets | 23,682 | 25,176 | |
Capital expenditures | 185 | 638 | |
Corporate and Other [Member] | |||
Summarized financial information regarding reportable segments | |||
Net revenue from external customers | 0 | 0 | |
Gross profit | 0 | 0 | |
Income (loss) from operations | (11,034) | (9,315) | |
Depreciation and amortization | 496 | 370 | |
Total assets | 13,266 | 3,741 | |
Capital expenditures | $ 633 | $ 445 |
Business Segment, Geographic 62
Business Segment, Geographic and Major Customer Information - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 72,289 | $ 82,373 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 57,793 | 64,195 |
Other countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 14,496 | $ 18,178 |
Business Segment, Geographic 63
Business Segment, Geographic and Major Customer Information - Additional Disclosures (Details) - segment | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 4 | |
Customer Concentration Risk [Member] | Customer A [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue by major customers (percent) | 21.10% | 12.00% |
Customer Concentration Risk [Member] | Customer B [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue by major customers (percent) | 10.90% | 10.30% |
Customer Concentration Risk [Member] | Major Customers [Member] | Sales [Member] | Energy Chemistry Technologies [Member] | Minimum [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenue by major customers (percent) | 94.00% |
Commitments and Contingencies -
Commitments and Contingencies - (Details) - lawsuit | 1 Months Ended | |
Jan. 31, 2016 | Nov. 30, 2015 | |
Punitive Lawsuits Filed in the United States District Court for the Southern District of Texas [Member] | ||
Loss Contingencies [Line Items] | ||
Number of lawsuits filed | 1 | 4 |
Derivative Lawsuit Against Officers and Directors [Member] | ||
Loss Contingencies [Line Items] | ||
Number of lawsuits filed | 3 | |
Derivative Lawsuit Filed in District Court of Harris County, Texas [Member] | ||
Loss Contingencies [Line Items] | ||
Number of lawsuits filed | 2 |