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Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information

 

13.

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.

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 Frac®.  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 at the same facilities and using the same machinery and equipment as the oilfield products, however they are sold to industrial companies.  These products are designed for use in various industrial technology applications, including, but not limited to, casting and milling.  Our chief operating decision maker reviews discrete financial information as a whole for all of our manufacturing, consulting and software businesses.  Manufacturing includes the manufacture of technology products, base ceramics, industrial ceramics, sand and contract manufacturing, regardless of the industry the products are ultimately sold to.  See Note 2 for disaggregated revenue information.

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 two-year period ended December 31, 2019 is shown in the following tables.  Intersegment sales are not material.

 

 

 

Oilfield and Industrial Technologies and Services

 

 

Environmental Technologies and Services

 

 

Total

 

 

 

($ in thousands)

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

135,555

 

 

$

26,152

 

 

$

161,707

 

(Loss) income before income taxes

 

 

(306,827

)

 

 

412

 

 

 

(306,415

)

Total assets

 

 

177,460

 

 

 

14,054

 

 

 

191,514

 

Capital expenditures

 

 

1,899

 

 

 

293

 

 

 

2,192

 

Depreciation and amortization

 

 

29,694

 

 

 

1,013

 

 

 

30,707

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

178,609

 

 

$

32,136

 

 

$

210,745

 

(Loss) income before income taxes

 

 

(77,264

)

 

 

2,723

 

 

 

(74,541

)

Total assets

 

 

456,416

 

 

 

17,950

 

 

 

474,366

 

Capital expenditures

 

 

1,093

 

 

 

946

 

 

 

2,039

 

Depreciation and amortization

 

 

33,452

 

 

 

1,153

 

 

 

34,605

 

 

Geographic Information

Long-lived assets, consisting of net property, plant and equipment, operating lease ROU assets and other long-term assets, as of December 31 in the United States and other countries are as follows:

 

 

 

2019

 

 

2018

 

Long-lived assets:

 

 

 

 

 

 

 

 

United States

 

$

76,424

 

 

$

272,903

 

International

 

 

1,597

 

 

 

5,910

 

Total

 

$

78,021

 

 

$

278,813

 

 

Revenues outside the United States accounted for 27% and 19% of the Company’s revenues for 2019 and 2018, respectively.  Revenues for the years ended December 31 in the United States, Canada and other countries are as follows:

 

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

United States

 

$

118,604

 

 

$

171,167

 

Canada

 

 

2,479

 

 

 

6,086

 

Other international

 

 

40,624

 

 

 

33,492

 

Total

 

$

161,707

 

 

$

210,745

 

 

Sales to Customers

 

The following schedule presents customers, primarily from the Oilfield and Industrial Technologies and Services segment, from whom the Company derived 10% or more of total revenues for the years ended December 31:

 

 

 

 

 

 

 

A

 

 

B

 

 

C

 

2019

 

*

 

 

*

 

 

 

26.0

%

2018

 

 

12.7

%

 

 

13.7

%

 

*

 

 

* Less than 10%