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Business Segment, Geographic and Major Customer Information | 9 Months Ended
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Sep. 30, 2012
Business Segment, Geographic and Major Customer Information [Abstract] |
Business Segment, Geographic and Major Customer Information | Note 13 — 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 to determine allocation of resources and assess performance. The operations of the Company can be categorized into three reportable segments: Chemicals and Logistics (“Chemicals”), Drilling Products (“Drilling”) and Artificial Lift.
• |  | Chemicals is comprised of two business divisions: Specialty Chemicals and Logistics. Specialty Chemicals designs, develops, manufactures, packages and markets specialty chemicals used in oil and gas well cementing, stimulation, acidizing, drilling and production. Logistics manages automated material handling, loading facilities and blending capabilities for oilfield services companies.
• |  | Drilling rents, inspects, manufactures and markets down-hole drilling equipment for energy, mining, water well and industrial drilling sectors.
• |  | Artificial Lift assembles and markets artificial lift equipment, notably the Company’s Petrovalve product line of rod pump components, electric submersible pumps, gas separators, valves and services that support natural gas and oil production activities.
The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, as well as estimated income tax provisions (benefits), are not allocated to reportable segments. Summarized financial information regarding reportable segments is as follows (in thousands):
|  | Chemicals |  |  | Drilling |  |  | Artificial Lift |  |  | Corporate |  |  | Total |
As of and for the Three Months Ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue from external customers |  | $ | 44,189 |  |  | $ | 30,424 |  |  | $ | 4,015 |  |  | $ | — |  |  | $ | 78,628 |
Gross margin |  |  | 20,774 |  |  |  | 11,252 |  |  |  | 1,817 |  |  |  | — |  |  |  | 33,843 |
Income (loss) from operations |  |  | 16,530 |  |  |  | 5,329 |  |  |  | 1,384 |  |  |  | (8,650 | ) |  |  | 14,593 |
Depreciation and amortization |  |  | 460 |  |  |  | 2,277 |  |  |  | 54 |  |  |  | 177 |  |  |  | 2,968 |
Total assets |  |  | 53,076 |  |  |  | 122,533 |  |  |  | 10,563 |  |  |  | 31,963 |  |  |  | 218,135 |
Capital expenditures |  |  | 733 |  |  |  | 2,384 |  |  |  | 5 |  |  |  | 2,643 |  |  |  | 5,765 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue from external customers |  | $ | 43,639 |  |  | $ | 26,963 |  |  | $ | 4,456 |  |  | $ | — |  |  | $ | 75,058 |
Gross margin |  |  | 17,393 |  |  |  | 11,091 |  |  |  | 2,233 |  |  |  | — |  |  |  | 30,717 |
Income (loss) from operations |  |  | 13,795 |  |  |  | 5,585 |  |  |  | 1,811 |  |  |  | (5,086 | ) |  |  | 16,105 |
Depreciation and amortization |  |  | 409 |  |  |  | 2,056 |  |  |  | 50 |  |  |  | 53 |  |  |  | 2,568 |
Total assets |  |  | 56,880 |  |  |  | 111,804 |  |  |  | 10,162 |  |  |  | 32,182 |  |  |  | 211,028 |
Capital expenditures |  |  | 928 |  |  |  | 945 |  |  |  | 38 |  |  |  | 403 |  |  |  | 2,314 |
|  | Chemicals |  |  | Drilling |  |  | Artificial Lift |  |  | Corporate |  |  | Total |
As of and for the Nine Months Ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue from external customers |  | $ | 137,827 |  |  | $ | 89,214 |  |  | $ | 9,085 |  |  | $ | — |  |  | $ | 236,126 |
Gross margin |  |  | 61,856 |  |  |  | 34,764 |  |  |  | 3,699 |  |  |  | — |  |  |  | 100,319 |
Income (loss) from operations |  |  | 50,005 |  |  |  | 17,320 |  |  |  | 2,284 |  |  |  | (22,679 | ) |  |  | 46,930 |
Depreciation and amortization |  |  | 1,321 |  |  |  | 6,738 |  |  |  | 148 |  |  |  | 261 |  |  |  | 8,468 |
Total assets |  |  | 53,076 |  |  |  | 122,533 |  |  |  | 10,563 |  |  |  | 31,963 |  |  |  | 218,135 |
Capital expenditures |  |  | 2,896 |  |  |  | 7,724 |  |  |  | 73 |  |  |  | 4,550 |  |  |  | 15,243 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net revenue from external customers |  | $ | 99,707 |  |  | $ | 74,068 |  |  | $ | 10,106 |  |  | $ | — |  |  | $ | 183,881 |
Gross margin |  |  | 39,705 |  |  |  | 30,844 |  |  |  | 3,557 |  |  |  | — |  |  |  | 74,106 |
Income (loss) from operations |  |  | 30,586 |  |  |  | 16,187 |  |  |  | 2,205 |  |  |  | (15,683 | ) |  |  | 33,295 |
Depreciation and amortization |  |  | 1,189 |  |  |  | 5,979 |  |  |  | 155 |  |  |  | 209 |  |  |  | 7,532 |
Total assets |  |  | 56,880 |  |  |  | 111,804 |  |  |  | 10,162 |  |  |  | 32,182 |  |  |  | 211,028 |
Capital expenditures |  |  | 1,090 |  |  |  | 3,900 |  |  |  | 48 |  |  |  | 933 |  |  |  | 5,971 |
Geographic Information Revenue by country is based upon the location where services are provided and products are sold. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
U.S. |  | $ | 68,512 |  |  | $ | 63,906 |  |  | $ | 206,394 |  |  | $ | 159,756 |
Other countries |  |  | 10,116 |  |  |  | 11,152 |  |  |  | 29,731 |  |  |  | 24,125 |
Total |  | $ | 78,628 |  |  | $ | 75,058 |  |  | $ | 236,125 |  |  | $ | 183,881 |
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 September 30, |  |  | Nine Months Ended September 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Customer A |  |  | 16.6 | % |  |  | 14.6 | % |  |  | 15.2 | % |  |  | 13.7 | %
Customer B |  |  | 9.5 | % |  |  | 12.8 | % |  |  | 10.4 | % |  |  | 11.7 | %
Customer C |  |  | 12.1 | % |  |  | 5.8 | % |  |  | 9.8 | % |  |  | 4.5 | %
Over 97% of Customer A’s revenue for the three and nine month periods ended September 30, 2012 and 2011, was attributable to sales within the Chemicals segment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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