Accounts Receivable and Allowance for Doubtful Accounts

9 Months Ended

Sep. 30, 2012

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Note 3. Accounts Receivable and Allowance for Doubtful Accounts

        Accounts receivable consisted of the following (in thousands):

	September 30, 2012			December 31, 2011
Trade accounts receivable	$	48,994		$	26,432
Other receivables		1,953			572
Less: Allowance for doubtful accounts		(479	)		(476	)
	$	50,468		$	26,528

        The Company had a net recovery of $0.1 million of bad debt expense in the three months ended September 30, 2012 and September 30, 2011. The Company had no bad debt expense in the nine months ended September 30, 2012 and a net recovery of bad debt expense in the nine months ended September 30, 2011 of $0.3 million.

        The Company performs ongoing credit evaluations of its customers and believes it has made adequate provisions for potential credit losses. The Company does not generally require collateral on accounts receivable; however, under certain circumstances, the Company may require from its customers a letter of credit, a parent corporation guarantee, or full or partial prepayment prior to performing services. The Company estimates its allowance for doubtful accounts using a specific identification method based on an evaluation of payment history, the customer's credit situation, and other factors. At September 30, 2012, four customers made up 76.4% of the Company's accounts receivable balance. At December 31, 2011, three customers made up 52.5% of the Company's accounts receivable balance. Allowance for doubtful accounts was $0.5 million and $0.5 million at September 30, 2012 and December 31, 2011, respectively.

        The accounts receivable attributable to the following customers represented the percentage of total accounts receivable as set forth in the table below:

	Percentage of Total Accounts Receivable
	As of September 30, 2012			As of December 31, 2011
Italian Ministry of Civil Protection		34.8	%		18.9	%
NAMSA (Greece)		19.7	%		—
Hellenic Fire Brigade (Greece)		11.3	%		21.6	%
US Forest Service		10.6	%		—
Helicorp (Australia)		—			12.0	%
		76.4	%		52.5	%

        The following is a summary of customers that accounted for at least 10% of the Company's sales in the three or nine months ended September 30, 2012 or 2011:

	Percentage of Revenues
	For the Three Months Ended September 30, 2012			For the Three Months Ended September 30, 2011			For the Nine Months Ended September 30, 2012			For the Nine Months Ended September 30, 2011
US Forest Service		44.9	%		34.8	%		32.2	%		31.1	%
Italian Ministry of Civil Protection		14.1	%		16.7	%		14.3	%		16.7	%
NAMSA (Greece)(1)		13.0	%		—			8.4	%		—
Hellenic Fire Brigade (Greece)(1)		—			16.5	%		—			9.1	%
Helicorp (Australia)		—			—			5.4	%		6.8	%
		72.0	%		68.0	%		60.3	%		63.7	%

(1)

On May 23, 2012, the Company entered into a three year agreement with the NATO Maintenance and Supply Agency ("NAMSA"), pursuant to which the Company has agreed to supply aerial firefighting services in Greece for the 2012 to 2014 firefighting seasons. Prior to the agreement with NAMSA the Company contracted directly with the Hellenic Fire Brigade to provide firefighting services for Greece.