XML 29 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
Segment Information
 9 Months Ended
Sep. 30, 2015
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 products 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.  Our CODM does not make resource allocation decisions or access 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 September 30, 2015 (in thousands):
 
Rental
 
Sales
 
Service & Maintenance
 
Retirement of Rental Equipment
 
Corporate
 
Total
Revenue
$
18,491

 
$
2,468

 
$
234

 
$
—

 
$
—

 
$
21,193

Operating costs and expenses
7,327

 
1,740

 
70

 
(3
)
 
8,261

 
17,395

Other income, net
—

 
—

 
—

 
—

 
13

 
13

Income before provision for income taxes
$
11,164

 
$
728

 
$
164

 
$
3

 
$
(8,248
)
 
$
3,811


For the three months ended September 30, 2014 (in thousands):
 
Rental
 
Sales
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
20,177

 
$
5,218

 
$
204

 
$
—

 
$
25,599

Operating costs and expenses
8,110

 
3,493

 
101

 
8,055

 
19,759

Other income, net
—

 
—

 
—

 
127

 
127

Income before provision for  income taxes
$
12,067

 
$
1,725

 
$
103

 
$
(7,928
)
 
$
5,967




For the nine months ended September 30, 2015 (in thousands):
 
Rental
 
Sales
 
Service & Maintenance
 
Retirement of Rental Equipment
 
Corporate
 
Total
Revenue
$
58,806

 
$
10,672

 
$
686

 
$
—

 
$
—

 
$
70,164

Operating costs and expenses
22,062

 
7,706

 
151

 
4,370

 
25,371

 
59,660

Other income, net
—

 
—

 
—

 
—

 
54

 
54

Income before provision for income taxes
$
36,744

 
$
2,966

 
$
535

 
$
(4,370
)
 
$
(25,317
)
 
$
10,558



For the nine months ended September 30, 2014 (in thousands):
 
Rental
 
Sales
 
Service & Maintenance
 
Corporate
 
Total
Revenue
$
58,431

 
$
10,831

 
$
611

 
$
—

 
$
69,873

Operating costs and expenses
23,815

 
6,826

 
269

 
23,676

 
54,586

Other income, net
—

 
—

 
—

 
174

 
174

Income before provision for  income taxes
$
34,616

 
$
4,005

 
$
342

 
$
(23,502
)
 
$
15,461