Business Segment, Geographic and Major Customer Information

6 Months Ended

Jun. 30, 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. With its acquisition of Florida Chemical Company, Inc. on May 10, 2013 (see Note 3), the Company added operations in a new segment, Non-energy Chemical Technologies. The operations of the Company are now categorized into four reportable segments: Chemical Technologies, Non-energy Chemical Technologies, Drilling Technologies and Artificial Lift Technologies.

• Chemical Technologies designs, develops, manufactures, packages and markets specialty chemicals, some of which hold patent protection, used in oil and gas well cementing, stimulation, acidizing, drilling and production. Activities in this segment also include construction and management of automated material handling facilities and management of loading facilities and blending operations for oilfield services companies.

• Non-energy Chemical Technologies designs, develops and manufactures products that are sold to companies in the flavor and fragrance industry and specialty chemical industry. These technologies are used by beverage and food companies, fragrance companies, and companies providing household and industrial cleaning products.

• Drilling Technologies rents, sells, inspects, manufactures and markets downhole drilling equipment used in energy, mining, water well and industrial drilling activities.

• Artificial Lift Technologies 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 June 30,	Chemical Technologies		Non-energy Chemical Technologies		Drilling Technologies		Artificial Lift Technologies		Corporate and Other			Total
2013
Net revenue from external customers	$	47,709	$	12,675	$	29,785	$	3,417	$	—		$	93,586
Gross margin	20,586		3,693		12,455		860		—			37,594
Income (loss) from operations	14,729		2,347		5,782		330		(9,657		)	13,531
Depreciation and amortization	809		252		2,415		60		354			3,890
Total assets	119,137		104,201		118,722		13,296		27,754			383,110
Capital expenditures	1,933		35		2,141		70		557			4,736
2012
Net revenue from external customers	$	45,992	$	—	$	29,801	$	2,510	$	—		$	78,303
Gross margin	20,217		—		12,005		837		(34		)	33,025
Income (loss) from operations	16,350		—		6,444		385		(7,590		)	15,589
Depreciation and amortization	458		—		2,302		51		42			2,853
Total assets	54,769		—		119,050		9,298		18,561			201,678
Capital expenditures	913		—		2,946		55		1,445			5,359

As of and for the six months ended June 30,	Chemical Technologies		Non-energy Chemical Technologies		Drilling Technologies		Artificial Lift Technologies		Corporate and Other			Total
2013
Net revenue from external customers	$	92,359	$	12,675	$	58,699	$	8,096	$	—		$	171,829
Gross margin	39,699		3,693		23,801		3,031		—			70,224
Income (loss) from operations	29,053		2,347		11,201		1,943		(18,465		)	26,079
Depreciation and amortization	1,269		252		4,777		121		504			6,923
Total assets	119,137		104,201		118,722		13,296		27,754			383,110
Capital expenditures	2,958		35		3,002		1,067		2,057			9,119
2012
Net revenue from external customers	$	93,639	$	—	$	58,790	$	5,069	$	—		$	157,498
Gross margin	41,132		—		23,515		1,884		(55		)	66,476
Income (loss) from operations	33,472		—		11,994		901		(14,030		)	32,337
Depreciation and amortization	862		—		4,461		95		83			5,501
Total assets	54,769		—		119,050		9,298		18,561			201,678
Capital expenditures	2,163		—		5,340		68		1,907			9,478

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 June 30,				Six months ended June 30,
	2013		2012		2013		2012
U.S.	$	83,488	$	69,912	$	149,510	$	137,883
Other countries	10,098		8,391		22,319		19,615
Total	$	93,586	$	78,303	$	171,829	$	157,498

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 June 30,				Six months ended June 30,
	2013		2012		2013		2012
Customer A	16.9	%	13.1	%	17.2	%	14.5	%
Customer B	*		10.6	%	*		10.8	%
Customer C	*		10.6	%	*		*
* This customer did not account for more than 10% of revenue.

Over 98% of the revenue from major customers was for sales within the Chemical Technologies segment.