DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On November 1, 2022, we completed the Quest Integrity Transaction with Baker Hughes for an aggregate purchase price of approximately $279.0 million, after certain post-closing adjustments, in accordance with the Sale Agreement. We used approximately $238.0 million of the net proceeds from the sale of Quest Integrity to pay down $225.0 million of our term loan debt, and to pay certain fees associated with that repayment and related accrued interest, with the remainder reserved for general corporate purposes, thereby reducing our future debt service obligations and leverage, and improving our liquidity. Quest Integrity previously represented a reportable segment. Following the completion of the Quest Integrity Transaction, we now operate in two segments, IHT and MS.

Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of comprehensive income (loss), statements of shareholders’ equity and statements of cash flows combine continuing and discontinued operations. A summary of financial information related to our discontinued operations is presented in the tables below.

The table below represents major line items constituting net income (loss) from discontinued operations to the after-tax income from discontinued operations (in thousands):

	Twelve Months Ended
	December 31,
	2022
Major classes of line items constituting net income (loss) from discontinued operations
Revenues	$	101,418
Operating expenses	(45,044)
Selling, general and administrative expenses	(32,230)
Interest expense, net	(108)
Other expense, net	(4,390)
Income before income taxes	19,646
Gain on sale of Quest transaction	203,351
Income before income taxes	222,997
Provision for income taxes	(2,831)
Net income from discontinued operations	$	220,166

We completed the sale of Quest Integrity on November 1, 2022. As a result, there were no assets or liabilities in discontinued operations as of December 31, 2023 or 2022.

The following table presents the depreciation and amortization and capital expenditures of Quest Integrity (in thousands):

	Twelve Months Ended
	December 31,
	2022
Cash flows provided by operating activities of discontinued operations:
Depreciation and amortization	$	1,141
Cash flows provided by investing activities of discontinued operations:
Capital expenditures	$	4,146