Business Segment, Geographic and Major Customer Information

9 Months Ended

Sep. 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, Consumer and Industrial Chemical Technologies (previously referred to as Non-energy Chemical Technologies). The operations of the Company are now categorized into four reportable segments: Energy Chemical Technologies (previously referred to as Chemical Technologies), Consumer and Industrial Chemical Technologies, Drilling Technologies and Artificial Lift Technologies.

• Energy 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.

• Consumer and Industrial Chemical Technologies designs, develops and manufactures products that are sold to companies in the flavor and fragrance industry and the 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 down-hole 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 September 30,	Energy Chemical Technologies		Consumer and Industrial Chemical Technologies		Drilling Technologies		Artificial Lift Technologies		Corporate and Other			Total
2013
Net revenue from external customers	$	51,670	$	15,292	$	27,569	$	3,857	$	—		$	98,388
Gross margin	21,849		3,588		10,821		1,244		—			37,502
Income (loss) from operations	16,247		2,301		4,309		769		(8,539		)	15,087
Depreciation and amortization	932		382		2,438		60		213			4,025
Total assets	121,876		97,129		136,832		16,542		8,600			380,979
Capital expenditures	161		165		1,596		225		328			2,475
2012
Net revenue from external customers	$	44,189	$	—	$	30,424	$	4,015	$	—		$	78,628
Gross margin	20,774		—		11,252		1,817		—			33,843
Income (loss) from operations	16,530		—		5,329		1,384		(8,650		)	14,593
Depreciation and amortization	460		—		2,277		54		176			2,967
Total assets	53,076		—		122,533		10,563		31,963			218,135
Capital expenditures	733		—		2,384		5		2,643			5,765

As of and for the nine months ended September 30,	Energy Chemical Technologies		Consumer and Industrial Chemical Technologies		Drilling Technologies		Artificial Lift Technologies		Corporate and Other			Total
2013
Net revenue from external customers	$	144,029	$	27,967	$	86,268	$	11,953	$	—		$	270,217
Gross margin	61,548		7,281		34,622		4,275		—			107,726
Income (loss) from operations	45,300		4,648		15,510		2,712		(27,004		)	41,166
Depreciation and amortization	2,201		634		7,215		181		717			10,948
Total assets	121,876		97,129		136,832		16,542		8,600			380,979
Capital expenditures	3,077		165		4,066		1,669		1,008			9,985
2012
Net revenue from external customers	$	137,827	$	—	$	89,214	$	9,085	$	—		$	236,126
Gross margin	61,856		—		34,764		3,699		—			100,319
Income (loss) from operations	50,005		—		17,320		2,284		(22,679		)	46,930
Depreciation and amortization	1,321		—		6,738		148		261			8,468
Total assets	53,076		—		122,533		10,563		31,963			218,135
Capital expenditures	2,896		—		7,724		73		4,550			15,243

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 September 30,				Nine months ended September 30,
	2013		2012		2013		2012
U.S.	$	84,640	$	68,512	$	234,151	$	206,394
Other countries	13,748		10,116		36,066		29,732
Total	$	98,388	$	78,628	$	270,217	$	236,126

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 September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Customer A	15.5	%	16.6	%	16.6	%	15.2	%
Customer B	*		*		*		10.4	%
Customer C	*		12.1	%	*		*
* This customer did not account for more than 10% of revenue.

Over 97% of the revenue from major customers was for sales within the Energy Chemical Technologies segment.