(Mark One)
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended March 31, 2013 or
|
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
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DELAWARE
(State or other jurisdiction of incorporation or organization)
|
94-2748530
(I.R.S. Employer Identification No.)
|
1133 WESTCHESTER AVENUE, SUITE N222
WHITE PLAINS, NEW YORK
(Address of principal executive offices)
|
10604
(Zip Code)
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Registrant's telephone number, including area code (914) 461-1300
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2603 CAMINO RAMON, SUITE 200, SAN RAMON, CA 94583
(Former name, former address and former fiscal year, if changed since last report)
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Part I.
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Financial Statements
|
|||
Item 1.
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Unaudited Financial Statements
|
|||
Condensed Statements of Operations for the three-month periods ended March 31, 2013 and 2012
|
4
|
|||
Condensed Statements of Comprehensive Income (Loss) for the three-month periods ended March 31, 2013 and 2012
|
5
|
|||
Condensed Balance Sheets as of March 31, 2013 and December 31, 2012
|
6
|
|||
Condensed Statements of Cash Flows for the three-month periods ended March 31, 2013 and 2012
|
7
|
|||
Notes to Condensed Financial Statements
|
8
|
|||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
25
|
||
Item 4.
|
Controls and Procedures
|
30
|
||
Part II.
|
Other Information
|
|||
Item 6.
|
Exhibits
|
31
|
||
Signatures
|
32
|
Three-Month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands, except per-share data)
|
||||||||
Net revenues
|
$ | 26,351 | $ | 14,446 | ||||
Cost of revenues
|
18,691 | 8,759 | ||||||
Gross margin
|
7,660 | 5,687 | ||||||
Operating expenses:
|
||||||||
Selling, general and administrative
|
5,593 | 4,636 | ||||||
Amortization of intangibles
|
2,400 | 813 | ||||||
Total operating expenses
|
7,993 | 5,449 | ||||||
(Loss) income from continuing operations
|
(333 | ) | 238 | |||||
Interest and other income (expense), net
|
1,674 | (220 | ) | |||||
Income from continuing operations before income taxes
|
1,341 | 18 | ||||||
Benefit from (provision for) income taxes
|
1,633 | (138 | ) | |||||
Net income (loss) from continuing operations
|
2,974 | (120 | ) | |||||
Loss from discontinued operations, net of taxes
|
- | (2,348 | ) | |||||
Net income (loss)
|
2,974 | (2,468 | ) | |||||
Net loss attributable to non-controlling interests in consolidated entities
|
||||||||
Continuing operations
|
(336 | ) | - | |||||
Discontinued operations
|
- | (580 | ) | |||||
(336 | ) | (580 | ) | |||||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 3,310 | $ | (1,888 | ) | |||
Basic income (loss) per share:
|
||||||||
Net income (loss) from continuing operations
|
$ | 0.23 | $ | (0.01 | ) | |||
Loss from discontinued operations, net of taxes
|
$ | - | $ | (0.22 | ) | |||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 0.26 | $ | (0.17 | ) | |||
Diluted income (loss) per share:
|
||||||||
Net income (loss) from continuing operations
|
$ | 0.23 | $ | (0.01 | ) | |||
Loss from discontinued operations, net of taxes
|
$ | - | $ | (0.22 | ) | |||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 0.26 | $ | (0.17 | ) | |||
Shares used in computing income (loss) per share:
|
||||||||
Basic
|
12,886 | 10,891 | ||||||
Diluted
|
12,909 | 10,891 |
Three-Month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Net income (loss)
|
$ | 2,974 | $ | (2,468 | ) | |||
Other comprehensive income (loss), net of taxes
|
||||||||
Foreign currency translation adjustment, net of taxes
|
(59 | ) | 5 | |||||
Net unrealized gain on marketable securities, net of taxes
|
2,871 | 307 | ||||||
Comprehensive income (loss)
|
5,786 | (2,156 | ) | |||||
Comprehensive loss attributable to non-controlling interest
|
336 | 580 | ||||||
Comprehensive income (loss) attributable to Steel Excel Inc.
|
$ | 6,122 | $ | (1,576 | ) |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 75,500 | $ | 71,556 | ||||
Marketable securities
|
186,338 | 199,128 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $0
|
15,190 | 17,257 | ||||||
Deferred income taxes
|
188 | 188 | ||||||
Prepaid expenses and other current assets
|
5,613 | 3,482 | ||||||
Total current assets
|
282,829 | 291,611 | ||||||
Property and equipment, net
|
77,673 | 77,768 | ||||||
Goodwill
|
58,257 | 53,093 | ||||||
Intangible assets, net
|
37,486 | 39,887 | ||||||
Investment in associated company
|
4,000 | - | ||||||
Deferred income taxes
|
1,696 | 1,696 | ||||||
Other long-term assets
|
2,322 | 2,440 | ||||||
Total assets
|
$ | 464,263 | $ | 466,495 | ||||
Liabilities and Stockholders' Equity:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 2,453 | $ | 4,282 | ||||
Accrued expenses and other liabilities
|
10,111 | 6,103 | ||||||
Current portion of long-term debt
|
- | 4,000 | ||||||
Current portion of capital lease obligations
|
413 | 413 | ||||||
3/4% convertible senior subordinated notes due 2023
|
346 | 346 | ||||||
Total current liabilities
|
13,323 | 15,144 | ||||||
Capital lease obligations, net of current portion
|
878 | 984 | ||||||
Long-term debt, net of current portion
|
- | 9,000 | ||||||
Deferred income taxes
|
39 | 33 | ||||||
Other long-term liabilities
|
9,753 | 9,372 | ||||||
Total liabilities
|
23,993 | 34,533 | ||||||
Commitments and contingencies (Note 11)
|
||||||||
Stockholders' equity:
|
||||||||
Common stock
|
13 | 13 | ||||||
Additional paid-in capital
|
229,692 | 231,170 | ||||||
Accumulated other comprehensive income
|
3,758 | 946 | ||||||
Retained earnings
|
203,082 | 199,772 | ||||||
Total Steel Excel Inc. stockholders' equity
|
436,545 | 431,901 | ||||||
Non-controlling interest
|
3,725 | 61 | ||||||
Total stockholders' equity
|
440,270 | 431,962 | ||||||
Total liabilities and stockholders' equity
|
$ | 464,263 | $ | 466,495 |
Three-Month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Cash Flows From Operating Activities:
|
||||||||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 3,310 | $ | (1,888 | ) | |||
Less: Loss from discontinued operations
|
- | (2,348 | ) | |||||
Net income from continuing operations, net of taxes
|
3,310 | 460 | ||||||
Adjustments to reconcile net income from continuing operations, to net cash provided by (used in) operating activities of continuing operations:
|
||||||||
Stock-based compensation expense
|
620 | 25 | ||||||
Depreciation and amortization
|
5,001 | 1,831 | ||||||
Accretion and amortization related to marketable securities, net
|
258 | 439 | ||||||
Adjustment of deferred income taxes
|
(1,818 | ) | 153 | |||||
Loss on disposal of long-lived assets
|
23 | - | ||||||
Net loss attributable to non-controlling interest
|
(336 | ) | (580 | ) | ||||
Changes in current assets and liabilities:
|
||||||||
Accounts receivable
|
2,067 | (6,926 | ) | |||||
Prepaid expenses and other current assets
|
(2,130 | ) | (1,408 | ) | ||||
Other assets
|
119 | (18 | ) | |||||
Accounts payable
|
(2,059 | ) | 2,124 | |||||
Accrued expenses and other liabilities
|
3,384 | 1,063 | ||||||
Net cash provided by (used in) operating activities of continuing operations
|
8,439 | (2,837 | ) | |||||
Net cash used in operating activities of discontinued operations
|
- | (709 | ) | |||||
Net cash provided by (used in) operating activities
|
8,439 | (3,546 | ) | |||||
Cash Flows From Investing Activities:
|
||||||||
Purchases of net assets in acquisitions
|
- | (48,131 | ) | |||||
Purchases of property and equipment
|
(2,459 | ) | (1,625 | ) | ||||
Investment in associated company
|
(4,000 | ) | - | |||||
Investment by non-controlling interest
|
- | 75 | ||||||
Purchases of marketable securities
|
(47,192 | ) | (198,630 | ) | ||||
Sales of marketable securities
|
8,315 | 261,312 | ||||||
Maturities of marketable securities
|
56,045 | 27,500 | ||||||
Net cash provided by investing activities
|
10,709 | 40,501 | ||||||
Cash Flows From Financing Activities:
|
||||||||
Repurchases of common stock
|
(2,098 | ) | - | |||||
Repayments of capital lease obligations
|
(106 | ) | - | |||||
Repayments of long-term debt
|
(13,000 | ) | - | |||||
Net cash used in financing activities
|
(15,204 | ) | - | |||||
Net increase in cash and cash equivalents
|
3,944 | 36,955 | ||||||
Effect of foreign currency translation on cash and cash equivalents
|
- | (4 | ) | |||||
Cash and cash equivalents, beginning balance
|
71,556 | 8,487 | ||||||
Cash and cash equivalents, ending balance
|
$ | 75,500 | $ | 45,438 |
Amount
|
||||
(in thousands)
|
||||
Cash
|
$ | 840 | ||
Property and equipment
|
70 | |||
Other assets
|
2 | |||
Accounts payable
|
(71 | ) | ||
Accrued liabilties and other current liabilities
|
(952 | ) | ||
Long-term liabilities
|
(53 | ) | ||
(164 | ) | |||
Non-controlling interest
|
(4,000 | ) | ||
Goodwill
|
5,164 | |||
Net assets acquired
|
$ | 1,000 |
Amount
|
||||
(in thousands)
|
||||
Current assets
|
$ | 526 | ||
Long-term assets
|
$ | 5,341 | ||
Current liabilities
|
$ | 1,209 | ||
Long-term liabilities
|
$ | 53 |
Amount
|
||||
(in thousands)
|
||||
Net revenues
|
$ | 30,148 | ||
Income from continuing operations, net of taxes
|
$ | 2,987 | ||
Income (loss) from discontinued operations, net of taxes
|
$ | (2,348 | ) | |
Net income attributable to Steel Excel Inc.
|
$ | 1,219 |
Shares
|
Weighted
Average |
Weighted
Average |
Aggregate
Intrinsic |
|||||||||||||
(in thousands)
|
||||||||||||||||
Outstanding at December 31, 2012
|
65 | $ | 30.93 | |||||||||||||
Granted
|
- | $ | - | |||||||||||||
Exercised
|
- | $ | - | |||||||||||||
Forfeited
|
- | $ | - | |||||||||||||
Expired
|
- | $ | - | |||||||||||||
Outstanding at March 31, 2013
|
65 | $ | 30.93 | 7.51 | $ | 4,647.50 | ||||||||||
Options vested and expected to vest at March 31, 2013
|
65 | $ | 30.93 | 7.51 | $ | 4,647.50 | ||||||||||
Options exerxcisable at March 31, 2013
|
49 | $ | 31.81 | 7.05 | $ | 1,746.66 |
Shares
|
Weighted
Average |
|||||||
(in thousands)
|
||||||||
Non-vested restricted stock units at December 31, 2012
|
17 | $ | 0.01 | |||||
Awarded
|
- | $ | - | |||||
Vested
|
(1 | ) | $ | 0.01 | ||||
Forfeited
|
- | $ | - | |||||
Non-vested restricted stock units at March 31, 2013
|
16 | $ | 0.002 |
Three-month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Stock-based compensation expense by caption
|
||||||||
Selling, general and administrative
|
$ | 620 | $ | 25 | ||||
Effect on income (loss) from continuing operations
|
$ | 620 | $ | 25 | ||||
Stock-based compensation expense by award type:
|
||||||||
Stock options
|
$ | 25 | $ | 16 | ||||
Restricted stock
|
595 | 9 | ||||||
Effect on income (loss) from continuing operations
|
$ | 620 | $ | 25 |
Amount
|
||||
(in thousands)
|
||||
Revenues
|
$ | 361 | ||
Loss from discontinued operations before income taxes
|
$ | (2,348 | ) | |
Benefit from income taxes
|
- | |||
Loss from discontinued operations, net of taxes
|
(2,348 | ) |
Cost
|
Gross
Unrealized |
Gross
Unrealized |
Estimated
Fair |
|||||||||||||
(in thousands)
|
||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Short-term deposits
|
$ | 47,490 | $ | - | $ | - | $ | 47,490 | ||||||||
Mutual funds
|
10,368 | 2,724 | - | 13,092 | ||||||||||||
United States government securities
|
78,346 | 131 | - | 78,477 | ||||||||||||
Corporate securities
|
30,387 | 2,829 | (686 | ) | 32,530 | |||||||||||
Corporate obligations
|
54,373 | 1,029 | (472 | ) | 54,930 | |||||||||||
Commercial paper
|
21,541 | 5 | - | 21,546 | ||||||||||||
Total available-for-sale securities
|
242,505 | 6,718 | (1,158 | ) | 248,065 | |||||||||||
Amounts classified as cash equivalents
|
(61,727 | ) | - | - | (61,727 | ) | ||||||||||
Amounts classified as marketable securities
|
$ | 180,778 | $ | 6,718 | $ | (1,158 | ) | $ | 186,338 |
Cost
|
Gross
Unrealized |
Gross
Unrealized |
Estimated
Fair |
|||||||||||||
(in thousands)
|
||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Short-term deposits
|
$ | 48,596 | $ | - | $ | - | $ | 48,596 | ||||||||
Mutual funds
|
10,368 | 1,452 | - | 11,820 | ||||||||||||
United States government securities
|
99,299 | 178 | - | 99,477 | ||||||||||||
Corporate securities
|
20,842 | 1,255 | (1,980 | ) | 20,117 | |||||||||||
Corporate obligations
|
48,708 | 283 | (277 | ) | 48,714 | |||||||||||
Commercial paper
|
22,275 | 16 | - | 22,291 | ||||||||||||
Total available-for-sale securities
|
250,088 | 3,184 | (2,257 | ) | 251,015 | |||||||||||
Amounts classified as cash equivalents
|
(51,887 | ) | - | - | (51,887 | ) | ||||||||||
Amounts classified as marketable securities
|
$ | 198,201 | $ | 3,184 | $ | (2,257 | ) | $ | 199,128 |
Less than 12 Months
|
12 Months or Greater
|
Total
|
||||||||||||||||||||||
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
U.S. government securities
|
$ | 1,408 | $ | - | $ | - | $ | - | $ | 1,408 | $ | - | ||||||||||||
Corporate oligations
|
5,406 | 2 | 6,536 | 470 | 11,942 | 472 | ||||||||||||||||||
Total
|
$ | 6,814 | $ | 2 | $ | 6,536 | $ | 470 | $ | 13,350 | $ | 472 |
|
||||||||||||||||||||||||
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
Fair
Value |
Gross
Unrealized |
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
U.S. government securities
|
$ | 88,420 | $ | - | $ | 11,056 | $ | - | $ | 99,476 | $ | - | ||||||||||||
Corporate oligations
|
24,346 | (2 | ) | 24,370 | (272 | ) | 48,716 | (274 | ) | |||||||||||||||
Total
|
$ | 112,766 | $ | (2 | ) | $ | 35,426 | $ | (272 | ) | $ | 148,192 | $ | (274 | ) |
Cost
|
Estimated
Fair Value
|
|||||||
(in thousands)
|
||||||||
Mature in one year or less
|
$ | 214,006 | $ | 219,000 | ||||
Mature after one year through three years
|
7,998 | 8,415 | ||||||
Mature in more than three years
|
20,501 | 20,650 | ||||||
Total
|
$ | 242,505 | $ | 248,065 |
Fair Value Measurements
at Reporting Date Used |
||||||||||||||||
Total
|
Quoted Prices
in Active |
Significant
Other |
Significant
Unobservable |
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash, including short-term deposits(1)
|
$ | 60,581 | $ | 60,581 | $ | - | $ | - | ||||||||
United States government securities(2)
|
78,476 | 78,476 | - | - | ||||||||||||
Corporate securities(2)
|
32,537 | 32,531 | - | 6 | ||||||||||||
Commercial paper(2)
|
21,546 | - | 21,546 | - | ||||||||||||
Corporate obligations(2)
|
54,929 | - | 33,210 | 21,719 | ||||||||||||
Non-controlling interests in certain funds(3)
|
1,021 | - | - | 1,021 | ||||||||||||
$ | 249,090 | $ | 171,588 | $ | 54,756 | $ | 22,746 | |||||||||
Liabilities
|
||||||||||||||||
Acquisition-related contingent consideration(4)
|
$ | (475 | ) | $ | - | $ | - | $ | (475 | ) |
(1)
|
At March 31, 2013, the Company recorded $47.5 million and $13.1 million within “Cash and cash equivalents” and “Marketable securities,” respectively.
|
(2)
|
Recorded within “Marketable securities.”
|
(3)
|
Recorded within “Other long-term assets.”
|
(4)
|
Recorded within “Other long-term liabilities.”
|
Fair Value Measurements
at Reporting Date Used |
||||||||||||||||
Total
|
Quoted Prices
in Active |
Significant
Other |
Significant
Unobservable |
|||||||||||||
(in thousands)
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash, including short-term deposits(1)
|
$ | 80,085 | $ | 80,085 | $ | - | $ | - | ||||||||
United States government securities(2)
|
99,477 | 99,477 | - | - | ||||||||||||
Corporate securities(2)
|
20,117 | 20,117 | - | - | ||||||||||||
Commercial paper(2)
|
22,291 | - | 22,291 | - | ||||||||||||
Corporate obligations(2)
|
48,714 | - | 46,931 | 1,783 | ||||||||||||
Non-controlling interests in certain funds(3)
|
1,021 | - | - | 1,021 | ||||||||||||
$ | 271,705 | $ | 199,679 | $ | 69,222 | $ | 2,804 | |||||||||
Liabilities
|
||||||||||||||||
Acquisition-related contingent consideration(4)
|
$ | (475 | ) | $ | - | $ | - | $ | (475 | ) |
(1)
|
At December 31 2012, the Company recorded $68.2 million and $11.9 million within “Cash and cash equivalents” and “Marketable securities,” respectively.
|
(2)
|
Recorded within “Marketable securities.”
|
(3)
|
Recorded within “Other long-term assets.”
|
(4)
|
Recorded within “Other long-term liabilities.”
|
Assets
|
Liabilities
|
|||||||
(in thousands)
|
||||||||
Balance, December 31, 2012
|
$ | 2,804 | $ | (475 | ) | |||
Purchases/distributions
|
19,900 | - | ||||||
Change in fair value
|
42 | - | ||||||
Balance, March 31, 2013
|
$ | 22,746 | $ | (475 | ) |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Rigs and other equipment
|
$ | 70,617 | $ | 68,404 | ||||
Buildings and improvements
|
13,183 | 12,019 | ||||||
Land
|
1,068 | 1,068 | ||||||
Vehicles
|
1,744 | 1,639 | ||||||
Furniture and fixtures
|
289 | 289 | ||||||
Assets in progress
|
1,345 | 2,342 | ||||||
88,246 | 85,761 | |||||||
Accumulated depreciation
|
(10,573 | ) | (7,993 | ) | ||||
Property and equipment, net
|
$ | 77,673 | $ | 77,768 |
March 31, 2013
|
|||||||||||||||||
Cost
|
Accumulated
Amortization |
Net
|
Amortization
Method
|
Estimated
Useful Life (years)
|
|||||||||||||
(in thousands)
|
|||||||||||||||||
Steel Sports:
|
|||||||||||||||||
Customer relationships
|
$ | 235 | $ | (78 | ) | 157 |
Straight-line
|
5
|
|||||||||
Steel Energy:
|
|||||||||||||||||
Customer relationships
|
43,100 | (8,372 | ) | 34,728 |
Accelerated
|
10
|
|||||||||||
Trade names
|
4,100 | (1,499 | ) | 2,601 |
Accelerated
|
5
|
|||||||||||
47,200 | (9,871 | ) | 37,329 | ||||||||||||||
|
$ | 47,435 | $ | (9,949 | ) | $ | 37,486 |
December 31, 2012 | |||||||||||||||||
Cost |
Accumulated
Amortization
|
Net |
Amortization
Method |
Estimated
Useful Life
(years)
|
|||||||||||||
(in thousands) | |||||||||||||||||
Steel Sports:
|
|||||||||||||||||
Customer relationships
|
$ |
235
|
$ |
(67)
|
168
|
Straight-line
|
5
|
||||||||||
Steel Energy:
|
|||||||||||||||||
Customer relationships
|
43,100
|
(6,356)
|
36,744
|
Accelerated
|
10
|
||||||||||||
Trade names
|
4,100
|
(1,125)
|
2,975
|
Accelerated
|
5
|
||||||||||||
47,200
|
(7,481)
|
39,719
|
|||||||||||||||
|
$ |
47,435
|
$ |
(7,548)
|
$ |
39,887
|
Steel Sports
|
Steel Energy
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
For the year ended December 31:
|
||||||||||||
2013 (remaining nine months)
|
$ | 35 | $ | 6,145 | $ | 6,180 | ||||||
2014
|
47 | 6,565 | 6,612 | |||||||||
2015
|
47 | 5,234 | 5,281 | |||||||||
2016
|
28 | 4,245 | 4,273 | |||||||||
2017
|
- | 3,158 | 3,158 | |||||||||
Thereafter
|
- | 11,982 | 11,982 | |||||||||
$ | 157 | $ | 37,329 | $ | 37,486 |
Amount
|
||||
(in thousands)
|
||||
Balance, December 31, 2012
|
$ | 53,093 | ||
Goodwill acquired in the acquisition of Sports-event Company
|
5,164 | |||
Balance, March 31, 2013
|
$ | 58,257 |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Goodwill
|
$ | 60,245 | $ | 55,081 | ||||
Accumulated impairment
|
(1,988 | ) | (1,988 | ) | ||||
Net goodwill
|
$ | 58,257 | $ | 53,093 |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Tax-related
|
$ | 1,237 | $ | 1,197 | ||||
Accrued compensation and related taxes
|
3,003 | 3,424 | ||||||
Deferred revenue
|
2,196 | 299 | ||||||
Insurance
|
2,225 | - | ||||||
Professional services
|
431 | 282 | ||||||
Accrued fuel and rig-related charges
|
204 | 162 | ||||||
Other
|
815 | 739 | ||||||
$ | 10,111 | $ | 6,103 |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Tax-related
|
$ | 7,340 | $ | 7,340 | ||||
Phantom stock liability
|
2,072 | 1,798 | ||||||
Deferred compensation
|
288 | 234 | ||||||
Other
|
53 | - | ||||||
$ | 9,753 | $ | 9,372 |
Unrealized
Gain on
Securities
|
Cumulative
Translation
Adjustment
|
Total
|
||||||||||
(in thousands)
|
||||||||||||
Balance at December 31, 2012
|
$ | 927 | $ | 19 | $ | 946 | ||||||
Other comprehensive income (loss) before reclassifications
|
5,854 | (59 | ) | 5,795 | ||||||||
Amounts reclassified to realized gain
|
(1,216 | ) | - | (1,216 | ) | |||||||
Amounts reclassified to benefit from income taxes
|
(1,767 | ) | - | (1,767 | ) | |||||||
Net current period other comprehensive income (loss)
|
2,871 | (59 | ) | 2,812 | ||||||||
Balance at March 31, 2013
|
$ | 3,798 | $ | (40 | ) | $ | 3,758 |
Three-month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Interest income, net
|
$ | 1,829 | $ | 312 | ||||
Realized currency translation gain
|
15 | 49 | ||||||
Loss on disposal of long-lived assets
|
(23 | ) | - | |||||
Write-of of loan to Steel Sports company
|
- | (500 | ) | |||||
Other
|
(147 | ) | (81 | ) | ||||
$ | 1,674 | $ | (220 | ) |
Three-month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Revenues:
|
||||||||
Steel Sports
|
$ | 312 | $ | 156 | ||||
Steel Energy
|
26,039 | 14,290 | ||||||
$ | 26,351 | $ | 14,446 | |||||
Operating income (loss):
|
||||||||
Steel Sports
|
$ | (1,292 | ) | $ | (783 | ) | ||
Steel Energy
|
3,227 | 3,316 | ||||||
Corporate
|
(2,268 | ) | (2,295 | ) | ||||
$ | (333 | ) | $ | 238 | ||||
Depreciation and amortization expense:
|
||||||||
Steel Sports
|
$ | 146 | $ | 126 | ||||
Steel Energy
|
4,854 | 1,692 | ||||||
$ | 5,000 | $ | 1,818 |
March 31, 2013
|
December 31, 2012
|
|||||||
(in thousands)
|
||||||||
Total assets:
|
||||||||
Steel Sports
|
$ | 18,193 | $ | 7,613 | ||||
Steel Energy
|
189,468 | 199,889 | ||||||
Corporate
|
256,602 | 258,993 | ||||||
$ | 464,263 | $ | 466,495 | |||||
Accounts receivable:
|
||||||||
Steel Sports
|
$ | 419 | $ | 158 | ||||
Steel Energy
|
14,771 | 17,099 | ||||||
$ | 15,190 | $ | 17,257 | |||||
Goodwill:
|
||||||||
Steel Sports
|
$ | 5,318 | $ | 154 | ||||
Steel Energy
|
52,939 | 52,939 | ||||||
$ | 58,257 | $ | 53,093 | |||||
Property and equipment, net:
|
||||||||
Steel Sports
|
$ | 6,996 | $ | 6,005 | ||||
Steel Energy
|
70,677 | 71,763 | ||||||
$ | 77,673 | $ | 77,768 |
Three-month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands, except per share data)
|
||||||||
Numerators:
|
||||||||
Net income (loss) from continuing operations
|
$ | 2,974 | $ | (120 | ) | |||
Loss from discontinued operations, net of taxes
|
$ | - | $ | (2,348 | ) | |||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 3,310 | $ | (1,888 | ) | |||
Denominators:
|
||||||||
Basic weighted average common shares outstanding
|
12,886 | 10,891 | ||||||
Effect of dilutive securities:
|
||||||||
Stock-based awards
|
23 | - | ||||||
Diluted weighted average common shares outstanding
|
12,909 | 10,891 | ||||||
Basic income (loss) per share:
|
||||||||
Net income (loss) from continuing operations
|
$ | 0.23 | $ | (0.01 | ) | |||
Loss from discontinued operations, net of taxes
|
$ | - | $ | (0.22 | ) | |||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 0.26 | $ | (0.17 | ) | |||
Diluted income (loss) per share:
|
||||||||
Net income (loss) from continuing operations
|
$ | 0.23 | $ | (0.01 | ) | |||
Loss from discontinued operations, net of taxes
|
$ | - | $ | (0.22 | ) | |||
Net income (loss) attributable to Steel Excel Inc.
|
$ | 0.26 | $ | (0.17 | ) |
Three-month Period
Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Outstanding stock options
|
62 | 87 | ||||||
Outstanding restricted stock
|
- | 17 | ||||||
3/4% Convertible senior subordinated notes
|
3 | 3 | ||||||
65 | 107 |
Three-month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Interest paid
|
$ | 192 | $ | - | ||||
Income taxes paid
|
$ | 130 | $ | - | ||||
Non-cash investing and financing activities:
|
||||||||
Unrealized gains on available-for-sale securities
|
$ | 2,871 | $ | 307 |
Three-month Period
Ended March 31, |
||||||||
2013
|
2012
|
|||||||
(in thousands)
|
||||||||
Steel Sports net revenues
|
$ | 312 | $ | 156 | ||||
Steel Energy net revenues
|
26,039 | 14,290 | ||||||
Consolidated net revenues
|
$ | 26,351 | $ | 14,446 | ||||
Steel Sports gross margin
|
170 | 123 | ||||||
Steel Energy gross margin
|
7,490 | 5,564 | ||||||
Consolidated gross margin
|
$ | 7,660 | $ | 5,687 | ||||
As a % of revenues
|
29 | % | 39 | % |
(a)
|
(b)
|
(c)
|
(d)
|
|||||||||||||
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||||||||
Month of January 2013
|
12,000 | $ | 24.95 | - | 76,177 | |||||||||||
Month of February 2013
|
4,400 | $ | 24.50 | - | 71,777 | |||||||||||
Month of March 2013
|
64,538 | $ | 26.16 | - | 207,239 | |||||||||||
Total
|
80,938 | $ | 25.92 | - |
31.1*
|
Certification of the Principal Executive Officer, Jack L. Howard, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2*
|
Certification of the Principal Financial Officer, Mark. A. Zorko, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1*
|
Certifications of the Principal Executive Officer, Jack L. Howard, and the Principal Financial Officer, Mark A. Zorko, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS**
|
XBRL Instance Document.
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
* Filed herewith.
|
|
** Furnished with this Form 10-Q. In accordance with Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for the purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under these sections.
|
Steel Excel Inc.
|
||
By:
|
/s/Jack L. Howard |
Date: May 7, 2013
|
Jack L. Howard
Vice Chairman
(principal executive officer)
|
||
By:
|
/s/Mark A. Zorko | |
Mark A. Zorko
Chief Financial Officer
(principal financial officer)
|
Date: May 7, 2013
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Steel Excel Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/Jack L. Howard | |
Date: May 7, 2013
|
Jack L. Howard
Vice Chairman
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Steel Excel Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/Mark A. Zorko | |
Date: May 7, 2013
|
Mark A. Zorko
Chief Financial Officer
|
By:/s/Jack L. Howard
|
|
Date: May 7, 2013
|
Jack L. Howard
Vice Chairman
|
By:/s/Mark A. Zorko
|
|
Date: May 7, 2013
|
Mark A. Zorko
Chief Financial Officer
|
Note 3 - Acquisitions (Detail) - The carrying amounts and classifications of assets and liabilities included in the Company’s March 3 (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
---|---|
Current liabilities [Member]
|
|
Liabilities | $ 1,209 |
Long-term liabilities [Member]
|
|
Liabilities | 53 |
Current assets [Member]
|
|
Assets | 526 |
Long-term assets [Member]
|
|
Assets | $ 5,341 |
Note 8 - Long-Lived Assets (Detail) - Property and equipment, net: (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Property Plant and Equipment Gross | $ 88,246 | $ 85,761 |
Accumulated depreciation | (10,573) | (7,993) |
Property and equipment, net | 77,673 | 77,768 |
Rigs and Other Equipment [Member]
|
||
Property Plant and Equipment Gross | 70,617 | 68,404 |
Building and Building Improvements [Member]
|
||
Property Plant and Equipment Gross | 13,183 | 12,019 |
Land [Member]
|
||
Property Plant and Equipment Gross | 1,068 | 1,068 |
Vehicles [Member]
|
||
Property Plant and Equipment Gross | 1,744 | 1,639 |
Furniture and Fixtures [Member]
|
||
Property Plant and Equipment Gross | 289 | 289 |
Assets in Progress [Member]
|
||
Property Plant and Equipment Gross | $ 1,345 | $ 2,342 |
Note 16 - Related Party Transactions (Detail) (USD $)
|
3 Months Ended | 1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|---|
Mar. 31, 2013
Steel Excel [Member]
Percentage Owned By Steel Partners [Member]
|
Mar. 31, 2013
Interest Income [Member]
WebBank [Member]
|
Mar. 31, 2013
SP Corporate Services LLC [Member]
Monthly Fees for Financial Management and Administrative Services [Member]
|
Mar. 31, 2013
SP Corporate Services LLC [Member]
Monthly Expanded Services [Member]
|
Mar. 31, 2013
SP Corporate Services LLC [Member]
|
Mar. 31, 2012
SP Corporate Services LLC [Member]
|
Mar. 31, 2013
WebBank [Member]
Short-term Deposits [Member]
|
|
Equity Method Investment, Ownership Percentage | 51.50% | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 35,000 | $ 300,000 | $ 1,000,000 | $ 100,000 | |||
Accounts Payable, Related Parties | 300,000 | ||||||
Due from Related Parties, Current | 15,100,000 | ||||||
Revenue from Related Parties | $ 24,690 |
Note 8 - Long-Lived Assets (Detail) - Intangible assets, net: (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Cost | $ 47,435 | $ 47,435 |
Accumulated amortization | (9,949) | (7,548) |
Net | 37,486 | 39,887 |
Steel Sports [Member] | Customer Relationships [Member]
|
||
Cost | 235 | 235 |
Accumulated amortization | (78) | (67) |
Net | 157 | 168 |
Estimated Useful life | 5 years | 5 years |
Steel Energy [Member] | Customer Relationships [Member]
|
||
Cost | 43,100 | 43,100 |
Accumulated amortization | (8,372) | (6,356) |
Net | 34,728 | 36,744 |
Estimated Useful life | 10 years | 10 years |
Steel Energy [Member] | Trade Names [Member]
|
||
Cost | 4,100 | 4,100 |
Accumulated amortization | (1,499) | (1,125) |
Net | 2,601 | 2,975 |
Estimated Useful life | 5 years | 5 years |
Steel Energy [Member]
|
||
Cost | 47,200 | 47,200 |
Accumulated amortization | (9,871) | (7,481) |
Net | $ 37,329 | $ 39,719 |
Note 6 - Marketable Securities (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Jan. 31, 2013
Fitness Equipment Company [Member]
|
Jan. 31, 2013
Fitness Equipment Company [Member]
|
|
Single Investment, Max Amount | $ 25 | |||
Available-for-sale Securities, Gross Realized Gains | 1.3 | 0.1 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | |||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 4.0 |
Note 14 - Segment Information (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
|
Note 8 - Long-Lived Assets (Detail) - Goodwill reconciliation: (USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Balance, December 31, 2012 | $ 53,093 |
Balance, March 31, 2013 | 58,257 |
Goodwill acquired in the acquisition of Sports-event Company | $ 5,164 |
Note 17 - Supplemental Disclosures for Cash Flows (Detail) - Supplemental disclosures of cash flows: (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Interest paid | $ 192 | |
Income taxes paid | 130 | |
Non-cash investing and financing activities: | ||
Unrealized gains on available-for-sale securities | $ 2,871 | $ 307 |
Note 4 - Stock Benefit Plans (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
|
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Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] |
|
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Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] |
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Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] |
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Note 7 - Fair Value Measurements (Detail) (USD $)
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Mar. 31, 2013
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Jan. 28, 2013
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Dec. 31, 2012
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Mar. 31, 2013
Cash And Cash Equivalent [Member]
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Dec. 31, 2012
Cash And Cash Equivalent [Member]
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Mar. 31, 2013
Marketable Securities [Member]
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Dec. 31, 2012
Marketable Securities [Member]
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Nov. 30, 2012
Three Point Seven Five Percent Unsecured Convertible Subordinated Debentures Due In 2026 [Member]
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Jan. 28, 2013
"School Specialties" [Member]
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Cash and Cash Equivalents, Fair Value Disclosure | $ 47,500,000 | $ 68,200,000 | $ 13,100,000 | $ 11,900,000 | |||||
Investment Owned, Balance, Principal Amount | 11,900,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||||||
Investment Owned, at Cost | 6,000,000 | ||||||||
Debtor In Possession Financing Receivable | 22,000,000 | ||||||||
Debtor-in-Possession Financing, Amount Arranged | 155,000,000 | ||||||||
Convertible Notes Payable, Current | $ 346,000 | $ 346,000 |
Note 4 - Stock Benefit Plans (Detail) - Stock options activity: (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified |
3 Months Ended |
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Mar. 31, 2013
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Outstanding at December 31, 2012 | 65 |
Outstanding at December 31, 2012 (in Dollars per share) | $ 30.93 |
Outstanding at March 31, 2013 | 65 |
Outstanding at March 31, 2013 (in Dollars per share) | $ 30.93 |
Outstanding at March 31, 2013 | 7 years 186 days |
Outstanding at March 31, 2013 (in Dollars) | $ 4,647.50 |
Options vested and expected to vest at March 31, 2013 | 65 |
Options vested and expected to vest at March 31, 2013 (in Dollars per share) | $ 30.93 |
Options vested and expected to vest at March 31, 2013 | 7 years 186 days |
Options vested and expected to vest at March 31, 2013 (in Dollars) | 4,647.50 |
Options exerxcisable at March 31, 2013 | 49 |
Options exerxcisable at March 31, 2013 (in Dollars per share) | $ 31.81 |
Options exerxcisable at March 31, 2013 | 7 years 18 days |
Options exerxcisable at March 31, 2013 (in Dollars) | $ 1,746.66 |
Note 3 - Acquisitions (Detail) (USD $)
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3 Months Ended | |
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Mar. 31, 2013
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Jan. 31, 2013
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Sports Event Company [Member]
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Equity Method Investment, Ownership Percentage | 20.00% | |
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 1,000,000 | |
Business Acquisition, Contingent Consideration, Potential Cash Payment | 2,000,000 | |
Sports Event Company [Member]
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Business Acquisition, Purchase Price Allocation, Goodwill Amount | 5,164,000 | |
Business Combination, Acquisition Related Costs | $ 30,240 |
Note 7 - Fair Value Measurements (Detail) - Reconciliation of the beginning and ending balances of the Level 3 assets and liabilities: (USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
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Mar. 31, 2013
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Balance, December 31, 2012 | $ 2,804 |
Balance, December 31, 2012 | (475) |
Balance, March 31, 2013 | 22,746 |
Balance, March 31, 2013 | (475) |
Purchases/distributions | 19,900 |
Change in fair value | $ 42 |
Note 14 - Segment Information (Detail) - Segment information, assets: (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
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Dec. 31, 2012
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Total assets: | ||
Total Assets | $ 464,263 | $ 466,495 |
Accounts receivable: | ||
Accounts Receivable | 15,190 | 17,257 |
Goodwill: | ||
Goodwill | 58,257 | 53,093 |
Property and equipment, net: | ||
Property and equipment, net | 77,673 | 77,768 |
Steel Sports [Member]
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Total assets: | ||
Total Assets | 18,193 | 7,613 |
Accounts receivable: | ||
Accounts Receivable | 419 | 158 |
Goodwill: | ||
Goodwill | 5,318 | 154 |
Property and equipment, net: | ||
Property and equipment, net | 6,996 | 6,005 |
Steel Energy [Member]
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Total assets: | ||
Total Assets | 189,468 | 199,889 |
Accounts receivable: | ||
Accounts Receivable | 14,771 | 17,099 |
Goodwill: | ||
Goodwill | 52,939 | 52,939 |
Property and equipment, net: | ||
Property and equipment, net | 70,677 | 71,763 |
Corporate [Member]
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Total assets: | ||
Total Assets | $ 256,602 | $ 258,993 |
Note 9 - Liabilities (Detail) - Other long-term liabilities: (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
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Dec. 31, 2012
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Other Long-term liabilities | $ 9,753 | $ 9,372 |
Tax Related [Member]
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Other Long-term liabilities | 7,340 | 7,340 |
Phantom stock liability [Member]
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Other Long-term liabilities | 2,072 | 1,798 |
Deferred compensation [Member]
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Other Long-term liabilities | 288 | 234 |
Other long-term liabilities [Member]
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Other Long-term liabilities | $ 53 |
Note 3 - Acquisitions
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Business Combination Disclosure [Text Block] |
3.
Acquisitions
On
January 31, 2013, the Company acquired a 20% membership
interest in a sports event company for a cash price of $1.0
million with an option to invest another $2.0
million over the next two years. Pursuant to an operating
agreement, the Company has the ability to control the
operations of this company. In accordance with applicable
accounting rules, the Company determined that this company
was a variable interest entity (“VIE”) and that
the Company was the primary beneficiary. Accordingly, the
Company consolidated this company effective January 31, 2013.
Therefore, this investment was accounted for as a business
combination and the total cash consideration of $1.0 million
has been allocated on a preliminary basis to the net assets
acquired based on their respective estimated fair values at
January 31, 2013 as follows:
The
$5.2 million of goodwill arises from the growth potential the
Company sees for the investment, along with expected
synergies with the Company’s current sports-related
businesses, and is expected to be deductible for tax
purposes. The acquisition-related costs for this purchase
included in “Selling, general and administrative”
expenses in the Condensed Statements of Operations were
$30,240 for the three-month period ended March 31,
2013.
The
carrying amounts and classifications of assets and
liabilities included in the Company’s March 31, 2013
Condensed Balance Sheet for this consolidated VIE are as
follows:
The
sports-event company’s results of operations are
included in the accompanying financial statements since the
acquisition date, January 31, 2013. The Company is in the
process of completing its assessment of the fair value of net
assets acquired from this acquisition. Therefore, the fair
values presented are provisional pending completion of the
final valuation of the net assets.
The
Company is not including pro forma information for Steel
Sports companies for the periods prior to their acquisition
because they were not material to the Company’s results
of operations and earnings per share. The following pro forma
financial information presents the combined fiscal 2012
period results of the Company and its Steel Energy companies,
as if all acquisitions had occurred at the beginning of the
fiscal 2012 period. Such pro forma results are not
necessarily indicative of what would have actually occurred
had the acquisitions been in effect for the entire period.
The pro forma fiscal 2012 period financial results are as
follows:
There
is no pro forma information for the fiscal 2013 period as all
companies are already included in the condensed financial
statements as presented.
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Note 10 - Accumulated Other Comprehensive Income (Detail) - Changes, net of tax, in Accumulated other comprehensive income are as follows: (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
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Mar. 31, 2012
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Balance at December 31, 2012 | $ 927 | |
Balance at December 31, 2012 | 19 | |
Balance at December 31, 2012 | 946 | |
Balance at March 31, 2013 | 3,798 | |
Balance at March 31, 2013 | (40) | |
Balance at March 31, 2013 | 3,758 | |
Other comprehensive income (loss) before reclassifications | 5,854 | |
Other comprehensive income (loss) before reclassifications | (59) | 5 |
Other comprehensive income (loss) before reclassifications | 5,795 | |
Amounts reclassified to realized gain | (1,216) | |
Amounts reclassified to realized gain | (1,216) | |
Amounts reclassified to benefit from income taxes | (1,767) | |
Net current period other comprehensive income (loss) | 2,871 | 307 |
Net current period other comprehensive income (loss) | (59) | |
Net current period other comprehensive income (loss) | $ 2,812 |