10-K/A 1 l36957ae10vkza.htm 10-K/A e10vkza
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form l0-K/A
(Amendment No. 1)
 
     
(Mark One)    
þ
  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
    For the Fiscal Year Ended December 31, 2008
OR
o
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
 
Commission File No. 000-51435
 
SUPERIOR WELL SERVICES, INC.
(Exact name of registrant as specified in its charter)
 
     
Delaware
  20-2535684
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)
  Identification No.)
 
1380 Rt. 286 East, Suite #121
Indiana, Pennsylvania 15701
(Address of principal executive offices)
(Zip Code)
 
(Registrant’s telephone number, including area code) (724) 465-8904
 
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
 
     
Common Stock, $.01 par value
(Title of class)
  The NASDAQ Stock Market LLC
(Exchange)
 
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes o     No þ
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.  Yes o     No þ
 
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ     No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes o     No o
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this form 10-K.  o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
             
Large accelerated filer o
  Accelerated filer þ   Non-accelerated filer o
(Do not check if a smaller reporting company)
  Smaller reporting company o
 
Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o     No þ
 
As of December 31, 2008, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was $135,887,910 based on the closing sale price as reported on the The NASDAQ Global Select Market.
 
As of March 4, 2009, there were outstanding 23,609,538 shares of the registrant’s common stock, par value $.01, which is the only class of common or voting stock of the registrant.
 
DOCUMENTS INCORPORATED BY REFERENCE
 
None.
 
 
EXPLANATORY NOTE
 
We are filing this amendment (this “Amendment”) to our Annual Report on Form 10-K for the year ended December 31, 2008 (our “Annual Report”) to reflect the changes made in response to a comment received by us from the Staff of the Securities and Exchange Commission in connection with the Staff’s review of our Annual Report. Our consolidated financial position and consolidated results of operations for the periods presented have not been restated from the consolidated financial position and consolidated results of operations originally reported. We are only filing the item of our Annual Report that has been revised in response to the Staff’s comment and all other information in our Annual Report remains unchanged. Accordingly, this Amendment should be read in conjunction with our Annual Report. Unless otherwise stated, all information contained in this Amendment is as of March 13, 2009, the original filing date of our Annual Report.
       The only changes to our Annual Report are in Item 9A “Controls and Procedures.” In Item 9A we have revised our disclosure to more clearly present the conclusions of our principal executive and principal financial officers regarding the effectiveness of our disclosure controls and procedures as of December 31, 2008, based on their evaluation of those controls and procedures.
Pursuant to the Rules of the SEC, currently dated certifications from our Chief Executive Officer and Chief Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed or furnished herewith, as applicable.


 

 
SUPERIOR WELL SERVICES, INC.
ANNUAL REPORT ON FORM 10-K
 
TABLE OF CONTENTS
 
                 
      Controls and Procedures     1  
 
PART IV
      Exhibits and Financial Statement Schedules.     2  
 EX-31.1
 EX-31.2
 EX-32.1
 EX-32.2


Table of Contents

 
Item 9A.   Controls and Procedures
 
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Securities Exchange Act Rules 13a-15(f) or 15d-15(f)). Our internal control system is designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.
 
Our management assessed the effectiveness of its internal control over financial reporting as of December 31, 2008. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework. Based on its assessment, we believe that as of December 31, 2008, our internal control over financial reporting is effective based on those criteria. We have excluded the assets acquired from Diamondback Energy Holdings, LLC (“Diamondback”) from our Report on Internal Control over Financial Reporting for fiscal 2008 due to the timing of the closing date of the acquisition on November 18, 2008 and the expectation that internal control over financial reporting related to Diamondback will be changed to conform with our internal control over financial reporting in 2009. Activity related to Diamondback will be included in management’s fiscal 2009 internal control assessment. Diamondback constituted approximately 5.0% and 4.9% of consolidated revenue and income before income taxes, respectively, for the year ended December 31, 2008. There have been no significant changes in our internal controls or in other factors which could materially affect internal controls subsequent to the date our management carried out its evaluation.
 
Our independent registered public accounting firm has issued an attestation report on the effectiveness of our internal control over financial reporting.
 
We have established disclosure controls and procedures designed to ensure that material information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC and that any material information relating to us is recorded, processed, summarized and reported to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. In designing and evaluating our disclosure controls and procedures, our management recognizes that controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving desired control objectives. In reaching a reasonable level of assurance, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
 
As required by SEC rule 13a-15(b), we have evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Our Chief Executive Officer and Chief Financial Officer, based upon their evaluation as of December 31, 2008, the end of the period covered in this report, concluded that our disclosure controls and procedures were effective based on a reasonable assurance level.
 
There were no changes in our internal control over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.


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PART IV
 
Item 15.  Exhibits and Financial Statement Schedules.
 
  (a)  Exhibits
 
         
  3 .1   Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to Form 8-K filed on August 3, 2005).
  3 .2   Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to Form 8-K filed on August 3, 2005).
  3 .3   Certificate of Designations for Series A 4% Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to Form 8-K filed on November 21, 2008).
  4 .1   Specimen Stock Certificate representing our common stock (incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-1/A (Registration No. 333-124674) filed on June 24, 2005).
  4 .2   Registration Rights Agreement dated as of July 28, 2005 by and among the Company and the stockholders signatory thereto (incorporated by reference to Exhibit 10.1 to Form 8-K filed on August 3, 2005).
  4 .3†   Form of Restricted Stock Agreement for Employees without Employment Agreements (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-8(Registration No. 333-130615) filed on December 22, 2005).
  4 .4†   Form of Restricted Stock Agreement for Executives with Employment Agreements (filed as Exhibit 4.2 to the Company’s Registration Statement on Form S-8(Registration No. 333-130615) filed on December 22, 2005).
  4 .5†   Form of Restricted Stock Agreement for Non-Employee Directors (filed as Exhibit 4.3 to the Company’s Registration Statement on Form S-8(Registration No. 333-130615) filed on December 22, 2005).
  4 .6†   2005 stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on September 1, 2005).
  4 .7   Indenture, dated as of November 18, 2008, between Superior Well Services Inc. and its Subsidiaries and Wilmington Trust FSB (as Trustee and Collateral Agent), relating to the Second Lien due 2013 (incorporated by reference to Exhibit 4.1 to Form 8-K filed on November 21, 2008).
  10 .1†   Amended and Restated Employment Agreement between David E. Wallace and Superior Well Services Inc. dated September 15, 2008 (incorporated by reference to Exhibit 10.1 to Form 8-K filed on September 18, 2008).
  10 .2†   Amended and Restated Employment Agreement between Jacob Linaberger and Superior Well Services Inc. dated September 15, 2008 (incorporated by reference to Exhibit 10.2 to Form 8-K filed on September 18, 2008).
  10 .3†   Amended and Restated Employment Agreement between Thomas W. Stoelk and Superior Well Services Inc. dated September 15, 2008 (incorporated by reference to Exhibit 10.4 to Form 8-K filed on September 18, 2008).
  10 .4†   Amended and Restated Employment Agreement between Rhys R. Reese and Superior Well Services Inc. dated September 15, 2008 (incorporated by reference to Exhibit 10.3 to Form 8-K filed on September 18, 2008).
  10 .5†   Indemnification Agreement between David E. Wallace and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.7 to Form 8-K filed on August 3, 2005).
  10 .6†   Indemnification Agreement between Jacob B. Linaberger and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.8 to Form 8-K filed on August 3, 2005).
  10 .7†   Indemnification Agreement between Thomas W. Stoelk and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.9 to Form 8-K filed on August 3, 2005).
  10 .8†   Indemnification Agreement between Rhys R. Reese and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.10 to Form 8-K filed on August 3, 2005).
  10 .9†   Indemnification Agreement between Mark A. Snyder and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.12 to Form 8-K filed on August 3, 2005).
  10 .10†   Indemnification Agreement between David E. Snyder and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.13 to Form 8-K filed on August 3, 2005).
  10 .11†   Indemnification Agreement between Charles C. Neal and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.14 to Form 8-K filed on August 3, 2005).


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  10 .12†   Indemnification Agreement between John A. Staley, IV and Superior Well Services, Inc., dated August 3, 2005 (incorporated by reference to Exhibit 10.15 to Form 8-K filed on August 3, 2005).
  10 .13†   Indemnification Agreement between Anthony J. Mendicino and Superior Well Services, Inc. dated August 30, 2005 (incorporated by reference to Exhibit 10.16 to the Company’s Quarterly Report on Form 10-Q filed on September 1, 2005).
  10 .14†   Employment Agreement between Daniel Arnold and Superior Well Services, Inc., dated May 14, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on August 8, 2007).
  10 .15†   Indemnification Agreement between Daniel Arnold and Superior Well Services, Inc. dated May 14, 2007 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed on August 8, 2007).
  10 .16†   Employment Agreement between Arty Straehla and Superior Well Services Inc. dated November 18, 2008. (incorporated by reference to Exhibit 10.1 to Form 8-K filed on March 4, 2009).
  10 .17†   Indemnification Agreement between Arty Straehla and Superior Well Services Inc. dated November 18, 2008. (incorporated by reference to Exhibit 10.2 to Form 8-K filed on March 4, 2009).
  10 .18†   Non-Employee Director Compensation Summary (incorporated by reference to Exhibit 10.30 to the Company’s Annual Report on Form 10-K filed on March 11, 2008).
  10 .19   Agreement dated October 2, 2007 between U.S. Silica and Superior Well Services, Inc. (incorporated by reference to Exhibit 10.30 to the Company’s Annual Report on Form 10-K filed on March 11, 2008).
  10 .20   Revolving Credit Agreement among Superior Well Services Inc., Lenders Party, Citizens Bank of Pennsylvania (as Administrative Agent) and RBS Securities Corporation dated as of September 30, 2008 (incorporated by reference to Exhibit 10.1 to Form 8-K filed on October 3, 2008).
  10 .21   Asset Purchase Agreement among Superior Well Services Inc., Superior Well Services, Limited, Diamondback Holdings, LLC and Diamondback’s Subsidiaries dated September 15, 2008 (incorporated by reference to Exhibit 10.1 to Form 8-K filed on September 18, 2008).
  10 .22   First Amendment to Asset Purchase Agreement entered into by Superior Well Services Inc. and Superior Well Services, Limited and Diamondback Holdings, LLC and its Subsidiaries on November 18, 2008 (incorporated by reference to Exhibit 10.1 to Form 8-K filed on November 21, 2008).
  10 .23   Registration Rights Agreement dated November 18, 2008 among Superior Well Services Inc., Designated Holders and Diamondback Holdings, LLC (incorporated by reference to Exhibit 10.2 to Form 8-K filed on November 21, 2008).
  10 .24   Sand Purchase Agreement dated October 10, 2008 between Superior Well Services Inc. and Preferred Rocks USS, Inc. and U.S. Silica Company (incorporated by reference to Exhibit 10.1 to Form 10-Q filed on November 4, 2008).
 
  12 .1***   Ratio of Earnings to Fixed Charges and Earnings to Fixed Charges and Preference Securities Dividends
  23 .1***   Consent of Independent Registered Public Accounting Firm
  24 .1***   Power of Attorney (included on signature page).
 
  31 .1*   Sarbanes-Oxley Section 302 certification of David E. Wallace for Superior Well Services, Inc. for the Annual Report on Form 10-K for the year ended December 31, 2008.
  31 .2*   Sarbanes-Oxley Section 302 certification of. Thomas W. Stoelk for Superior Well Services, Inc. for the Annual Report on Form 10-K for the year ended December 31, 2008.
  32 .1**   Sarbanes-Oxley Section 906 certification of David E. Wallace for Superior Well Services, Inc. for the Annual Report on Form 10-K for the year ended December 31, 2008.
  32 .2**   Sarbanes-Oxley Section 906 certification of Thomas W. Stoelk for Superior Well Services, Inc. for the Annual Report on Form 10-K for the year ended December 31, 2008.
 
Filed herewith.
 
**  Furnished herewith.
 
***    Filed with our Annual Report on Form 10-K for the year ended December 31, 2008, as originally filed on March 13, 2009.
 
†  Management contract or compensatory plan or arrangement.

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SIGNATURES
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 21st day of September, 2009.
 
SUPERIOR WELL SERVICES, INC.
 
  By: 
/s/  Thomas W. Stoelk
Thomas W. Stoelk
Vice President and Chief Financial Officer
(principal financial officer)


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