XML 72 R20.htm IDEA: XBRL DOCUMENT v2.4.0.6
Business Segment, Geographic and Major Customer Information
3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
Business Segment, Geographic and Major Customer Information
Business Segment, Geographic and Major Customer Information
Segment Information
Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-makers in deciding how to allocate resources and assess performance. The operations of the Company are categorized into three reportable segments: Chemicals and Logistics (“Chemicals”), Drilling Products (“Drilling”) and Artificial Lift.
Chemicals is comprised of two business divisions: Specialty Chemicals and Logistics. Specialty Chemicals designs, develops, manufactures, packages and markets specialty chemicals used in oil and gas well cementing, stimulation, acidizing, drilling and production. Logistics manages automated material handling, loading facilities and blending capabilities for oilfield services companies.
Drilling rents, inspects, manufactures and markets downhole drilling equipment used in energy, mining, water well and industrial drilling activities.
Artificial Lift assembles and markets artificial lift equipment, including the Petrovalve product line of rod pump components, electric submersible pumps, gas separators, valves and services that support natural gas, oil and coal bed methane production activities.
The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income tax provisions (benefits), are not allocated to reportable segments.
Summarized financial information of the reportable segments is as follows (in thousands):
As of and for the three months ended March 31,
 
Chemicals and
Logistics
 
Drilling
Products
 
Artificial
Lift
 
Corporate and
Other
 
Total
2013
 
 
 
 
 
 
 
 
 
 
Net revenue from external customers
 
$
44,650

 
$
28,914

 
$
4,679

 
$

 
$
78,243

Gross margin
 
19,113

 
11,346

 
2,171

 

 
32,630

Income (loss) from operations
 
14,324

 
5,419

 
1,613

 
(8,808
)
 
12,548

Depreciation and amortization
 
460

 
2,362

 
61

 
150

 
3,033

Total assets
 
59,301

 
120,015

 
12,280

 
26,887

 
218,483

Capital expenditures
 
1,025

 
861

 
997

 
1,500

 
4,383

 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
Net revenue from external customers
 
$
47,647

 
$
28,988

 
$
2,560

 
$

 
$
79,195

Gross margin
 
20,895

 
11,509

 
1,047

 

 
33,451

Income (loss) from operations
 
17,122

 
5,549

 
516

 
(6,439
)
 
16,748

Depreciation and amortization
 
404

 
2,158

 
44

 
42

 
2,648

Total assets
 
59,913

 
115,401

 
10,907

 
17,971

 
204,192

Capital expenditures
 
1,250

 
2,394

 
13

 
462

 
4,119

Geographic Information
Revenue by country is based on the location where services are provided and products are sold. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):
 
Three months ended March 31,
 
2013
 
2012
U.S.
$
66,023

 
$
67,971

Other countries
12,220

 
11,224

Total
$
78,243

 
$
79,195


Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements.
Major Customers
Revenue from major customers, as a percentage of consolidated revenue, is as follows:
 
 
Three months ended March 31,
 
 
2013
 
2012
Customer A
 
17.5
%
 
15.8
%
Customer B
 
*

 
11.1
%
 
 
 
 
 
* This customer did not account for more than 10% of revenue.

Over 99% of the revenue from major customers was for sales within the Chemicals segment.