XML 25 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Information [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
 
Management believes that it operates in one business segment.  Although our MD&A disclosures describe product lines in which we conduct our business; these product lines are managed and operated as one business segment.  ASC 280-10-50, “Operating Segments”, define the characteristics of an operating segment as a) being engaged in business activity from which it may earn revenue and incur expenses, b) being reviewed by the company's chief operating decision maker (CODM) for decisions about resources to be allocated and assess its performance and c) having discrete financial information.  Although we indeed look at our product to analyze the nature of our revenue, other financial information, such as certain costs and expenses, net income and EBITDA are not captured or analyzed by these categories.   Therefore discrete financial information is not available by product line and our CODM does not make resource allocation decisions or assess the performance of the business based on these categories, but rather in the aggregate.
 
However, should a portion of our business be considered an operating segment; management has additionally reviewed the criteria for aggregation.  ASC 280-10-50-11, “Aggregation Criteria”, allows for the aggregation of operating segments if the segments have similar economic characteristics and if the segments are similar in each of the following areas:

•
The nature of the products and services;

•
The nature of the production of processes;

•
The type or class of customer for their products and services;

•
The methods used to distribute their products or provide their services; and

•
The nature of the regulatory environment, if applicable.

The Company is engaged in the business of designing and manufacturing compressors and flares. Our compressors and flares are sold and rented to our customers. In addition, we provide service and maintenance on compressors in our fleet and to third parties.These business activities are similar in all geographic areas.  Our manufacturing process is essentially the same for the entire Company and is performed in house at our facilities in Midland, Texas and Tulsa, Oklahoma.  Our customers primarily consist of entities in the business of producing natural gas.  The maintenance and service of our products is consistent across the entire Company and is performed via an internal fleet of vehicles.  The regulatory environment is similar in every jurisdiction in that the most impacting regulations and practices are the result of federal energy policy.  In addition, the economic characteristics of each customer arrangement are similar in that we maintain policies at the corporate level..
 
Therefore, the Company believes that should product lines be considered separate operating segments, they meet the requirements for aggregation as described above.

For the three months ended March 31, 2012 (in thousands):
 
Sales
 
Rental
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
12,432

 
$
13,738

 
$
206

 
$
—

 
$
26,376

Operating costs and expenses
9,555

 
5,509

 
93

 
5,597

 
20,754

Other income (expense)
—

 
—

 
—

 
36

 
36

Income before provision for income taxes
$
2,877

 
$
8,229

 
$
113

 
$
(5,561
)
 
$
5,658


For the three months ended March 31, 2011 (in thousands):
 
Sales
 
Rental
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
3,877

 
$
10,881

 
$
296

 
$
—

 
$
15,054

Operating costs and expenses
2,548

 
4,362

 
137

 
4,678

 
11,725

Other income (expense)
—

 
—

 
—

 
699

 
699

Income before provision for  income taxes
$
1,329

 
$
6,519

 
$
159

 
$
(3,979
)
 
$
4,028