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Segment Information
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information

10.

Segment Information

The Company has two operating segments: 1) oilfield and industrial technologies and services and 2) environmental technologies and services.  Discrete financial information is available for each operating segment.  Management of each operating segment reports to our Chief Executive Officer, the Company’s chief operating decision maker, who regularly evaluates income before income taxes as the measure to evaluate segment performance and to allocate resources.  The accounting policies of each segment are the same as those described in the summary of significant accounting policies in Note 1 of the consolidated financial statements included in the annual report on Form 10-K for the year ended December 31, 2017.

The Company’s oilfield and industrial technologies and services segment manufactures and sells technology ceramic products and services, base ceramic proppant and frac sand for both the oilfield and industrial sectors.  These products have different technology features and product characteristics, which vary based on the application for which they are intended to be used.  The various ceramic products’ manufacturing processes are similar.

Oilfield ceramic technology products, base ceramic proppant and frac sand proppant are manufactured and sold to pressure pumping companies and oil and gas operators for use in the hydraulic fracturing of natural gas and oil wells.   This segment also promotes increased production and Estimated Ultimate Recovery (“EUR”) of oil and natural gas by providing industry-leading technology to Design, Build, and Optimize the FracTM.  Through our wholly-owned subsidiary StrataGen, Inc., we sell one of the most widely used fracture stimulation software under the brand FracPro® and provide fracture design and consulting services to oil and natural gas E&P companies under the brand StrataGen.

Our industrial ceramic technology products are manufactured and sold to industrial companies.  These products are designed for use in various industrial technology applications, including, but not limited to, casting and milling.  

Our environmental technologies and services segment designs, manufactures and sells products and services intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (“LOE”).  AGPI, a wholly-owned subsidiary of ours, provides spill prevention, containment and countermeasure systems for the oil and gas industry.  AGPI uses proprietary technology designed to enable its clients to extend the life of their storage assets, reduce the potential for hydrocarbon spills and provide containment of stored materials.

Summarized financial information for the Company’s operating segments for the three and nine months ended September 30, 2018 and 2017 is shown in the following tables.  Intersegment sales are not material.

 

 

 

Oilfield and Industrial Technologies and Services

 

 

Environmental Technologies and Services

 

 

Total

 

Three Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

44,595

 

 

$

9,224

 

 

$

53,819

 

(Loss) income before income taxes

 

 

(17,904

)

 

 

997

 

 

 

(16,907

)

Depreciation and amortization

 

 

8,372

 

 

 

311

 

 

 

8,683

 

Three Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

44,847

 

 

$

5,326

 

 

$

50,173

 

Loss before income taxes

 

 

(178,603

)

 

 

(178

)

 

 

(178,781

)

Depreciation and amortization

 

 

11,223

 

 

 

309

 

 

 

11,532

 

Nine Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

136,850

 

 

$

24,325

 

 

$

161,175

 

(Loss) income before income taxes

 

 

(56,217

)

 

 

2,232

 

 

 

(53,985

)

Depreciation and amortization

 

 

25,755

 

 

 

897

 

 

 

26,652

 

Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

111,669

 

 

$

16,746

 

 

$

128,415

 

Loss before income taxes

 

 

(235,803

)

 

 

(455

)

 

 

(236,258

)

Depreciation and amortization

 

 

33,947

 

 

 

976

 

 

 

34,923