Results of Operations by Business Segment and Geographic Area

6 Months Ended

Jun. 30, 2012

Results of Operations by Business Segment and Geographic Area [Abstract]

Results of Operations by Business Segment and Geographic Area

Note 13 — Results of Operations by Business Segment and Geographic Area

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available and is regularly evaluated by chief operating decision-makers to determine allocation of resources and assessment of performance. The Company’s business is comprised of 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 down-hole drilling equipment for energy, mining, water well and industrial drilling sectors.

• Artificial Lift assembles and markets artificial lift equipment, including the Petrovalve line of rod pump components, electric submersible pumps, gas separators, valves and services that support coal bed methane and oil production.

The Company evaluates performance based upon several criteria. The primary financial measure is segment income before taxes. 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, as well as estimated income tax provisions (benefits), are not allocated to reportable segments.

Summarized financial information regarding reportable segments includes (in thousands):

For the Three Months Ended June 30,	Chemicals		Drilling		Artificial Lift			Corporate			Total
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
2011
Net revenue from external customers	$	29,142	$	24,464	$	2,312		$	—		$	55,918
Gross margin		11,011		10,808		425			—			22,244
Income (loss) from operations		8,266		5,905		(32	)		(6,233	)		7,906
Depreciation and amortization		390		1,981		52			73			2,496
Total assets		58,261		108,468		8,889			18,065			193,683
Capital expenditures		111		2,136		—			169			2,416

For the Six Months Ended June 30,	Chemicals		Drilling		Artificial Lift		Corporate			Total
2012
Net revenue from external customers	$	93,639	$	58,790	$	5,069	$	—		$	157,498
Gross margin		41,132		23,515		1,884		(54	)		66,477
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
2011
Net revenue from external customers	$	56,068	$	47,105	$	5,650	$	—		$	108,823
Gross margin		22,312		19,753		1,324		—			43,389
Income (loss) from operations		16,791		10,602		394		(10,597	)		17,190
Depreciation and amortization		780		3,923		105		156			4,964
Total assets		58,261		108,468		8,889		18,065			193,683
Capital expenditures		161		2,955		11		530			3,657

Geographic Information

Revenue by country is based upon the location of 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,
	2012		2011		2012		2011
U.S.	$	69,912	$	50,775	$	137,883	$	95,850
Other countries		8,391		5,143		19,615		12,973
Total	$	78,303	$	55,918	$	157,498	$	108,823

Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements.

Major Customers

Three customers individually accounted for 13.1%, 10.6%, and 10.6% of consolidated revenue for the three months ended June 30, 2012 while two customers individually accounted for 14.5% and 10.8% of consolidated revenue for the six months ended June 30, 2012. Two customers individually accounted for 12.8% and 11.0% of consolidated revenue for the three months ended June 30, 2011 and 13.1% and 11.0% for the six months ended June 30, 2011. Over 97% of this revenue for all periods presented relates to revenue generated within Chemicals.