Segment Data

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Data

Segment Data

Summarized operating results for our reportable segments are shown in the following table (net of inter-segment transfers):

	First Quarter
(In thousands)	2022		2021
Revenues
Fluids Systems	$	141,014	$	87,849
Industrial Solutions	35,424		53,323
Total revenues	$	176,438	$	141,172
Operating income (loss)
Fluids Systems	$	3,374	$	(6,767)
Industrial Solutions	5,472		13,130
Corporate office	(7,879)		(5,819)
Total operating income	$	967	$	544

    The following table presents further disaggregated revenues for the Fluids Systems segment:

	First Quarter
(In thousands)	2022		2021
United States	$	70,843	$	47,670
Canada	22,235		12,663
Total North America	93,078		60,333
EMEA	44,175		25,459
Other	3,761		2,057
Total International	47,936		27,516
Total Fluids Systems revenues	$	141,014	$	87,849

The following table presents further disaggregated revenues for the Industrial Solutions segment:

	First Quarter
(In thousands)	2022		2021
Product sales revenues	$	4,423	$	20,037
Rental revenues	17,615		17,079
Service revenues	13,386		11,654
Industrial blending revenues	—		4,553
Total Industrial Solutions revenues	$	35,424	$	53,323

With ongoing support from outside financial and other advisors, we have continuously reviewed our portfolio during the oil and natural gas cycle of the last couple of years. These reviews have focused on evaluating changes in the outlook for our served markets and customer priorities, while identifying opportunities for value-creating options in our portfolio, placing investment emphasis in markets where we generate strong returns and where we see greater long-term viability and stability. As part of our ongoing review of our portfolio, our management recommended, and our Board of Directors approved two actions in February 2022 intended to enhance liquidity available for investment in higher returning businesses.

First, in consideration of broader strategic priorities and the timeline and efforts required to further develop the industrial blending business, our Board of Directors approved a plan in February 2022 to exit our Industrial Blending operations. As part of the exit plan, we completed the wind down of the Industrial Blending business in the first quarter of 2022 and are currently pursuing the sale of the industrial blending and warehouse facility and related equipment located in Conroe, Texas. The Industrial Blending business had no significant revenues and incurred an operating loss of $0.9 million for the first

quarter of 2022, and contributed $5 million of revenues with approximately break-even operating income for the first quarter of 2021. As of March 31, 2022, the carrying value of the long-lived assets associated with the Industrial Blending business was $19 million.

As a result of the plan to exit and dispose of the assets used in the Industrial Blending business, we estimated in February 2022 and disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 that we may incur pre-tax charges in the range of approximately $4 million to $8 million primarily related to the non-cash impairment of long-lived assets related to the Industrial Blending business, which we anticipated recognizing in the first quarter of 2022. In March 2022, we shut down the Industrial Blending business and initiated a sales process to market the industrial blending and warehouse facility and related equipment. As a result of the ongoing sales process and revised estimates for the expected net proceeds from the ultimate disposition, we now anticipate recovering the $19 million carrying value of the long-lived assets associated with the Industrial Blending business. Accordingly, no impairment has been recognized for these assets in the first quarter of 2022, though it remains possible that we may incur a future impairment or loss related to the ongoing sales process.

Second, our Board of Directors also approved management’s plan to explore strategic options, including the potential sale, for our U.S. mineral grinding business. The U.S. mineral grinding business contributed third-party revenues of $14 million for the first quarter of 2022 and $7 million for the first quarter of 2021. As of March 31, 2022, the U.S. mineral grinding business had approximately $50 million of net capital employed, including approximately $28 million of net working capital.