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Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
ASC 280-10-50, “Operating Segments”, defines 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. Based on this, Management believes that it operates in one business segment.
 
In their analysis of product lines as potential operating segments, Management also considered ASC 280-10-50-11, “Aggregation Criteria”, which 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 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.
 
We are 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 and crude oil.  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.

For the three months ended June 30, 2013 (in thousands):
 
Sales
 
Rental
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
3,329

 
$
16,721

 
$
208

 
$
—

 
$
20,258

Operating costs and expenses
1,600

 
6,258

 
85

 
6,471

 
14,414

Other income (expense)
—

 
—

 
—

 
(79
)
 
(79
)
Income before provision for income taxes
$
1,729

 
$
10,463

 
$
123

 
$
(6,550
)
 
$
5,765


For the three months ended June 30, 2012 (in thousands):
 
Sales
 
Rental
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
10,649

 
$
13,671

 
$
188

 
$
—

 
$
24,508

Operating costs and expenses
7,563

 
5,874

 
98

 
6,144

 
19,679

Other income (expense)
—

 
—

 
—

 
58

 
58

Income before provision for  income taxes
$
3,086

 
$
7,797

 
$
90

 
$
(6,086
)
 
$
4,887



For the six months ended June 30, 2013 (in thousands):
 
Sales
 
Rental
 
Service & Maintenance
 
Corporate
 
Total
Revenue
11,164

 
32,728

 
349

 
$
—

 
$
44,241

Operating costs and expenses
6,482

 
13,070

 
153

 
12,555

 
32,260

Other income (expense)
—

 
—

 
—

 
226

 
226

Income before provision for income taxes
$
4,682

 
$
19,658

 
$
196

 
$
(12,329
)
 
$
12,207


For the six months ended June 30, 2012 (in thousands):
 
Sales
 
Rental
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
23,080

 
$
27,409

 
$
395

 
$
—

 
$
50,884

Operating costs and expenses
17,118

 
11,383

 
191

 
11,741

 
40,433

Other income (expense)
—

 
—

 
—

 
94

 
94

Income before provision for  income taxes
$
5,962

 
$
16,026

 
$
204

 
$
(11,647
)
 
$
10,545