Note 12 - Segment and Related Information

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

Note 12 — Segment and Related Information

Our Company consists of three reportable segments, which offer different products and services to a relatively homogenous customer base. The reportable segments include: Fluids Systems and Engineering, Mats and Integrated Services, and Environmental Services. Intersegment revenues are generally recorded at cost for items which are included in inventory of the purchasing segment, and at standard markups for items which are included in cost of revenues of the purchasing segment. All intersegment revenues and related profits have been eliminated.

Fluids Systems and Engineering — Our Fluids Systems and Engineering business offers customized solutions including highly technical drilling projects involving complex subsurface conditions, such as horizontal directional, geologically deep or deep water drilling. These projects require increased monitoring and critical engineering support of the fluids system during the drilling process.  We provide drilling fluids products and technical services to markets in North America, EMEA, Latin America, and the Asia Pacific region. Additionally, following our December 2012 purchase of Alliance Drilling Fluids we provide stimulation products (proppants), and other specialty chemicals and fluids and related services. We also provide completion services and equipment rental to customers in Oklahoma and Texas.

We have industrial mineral grinding operations for barite, a critical raw material in drilling fluids products, which serve to support our activity in the drilling fluids market. We grind barite and other industrial minerals at facilities in Houston and Corpus Christi, Texas, New Iberia, Louisiana and Dyersburg, Tennessee. We use the resulting products in our drilling fluids business, and also sell them to third party users, including other drilling fluids companies. We also sell a variety of other minerals, principally to third party industrial (non oil and gas) markets, from our main plant in Houston, Texas and from the plant in Dyersburg, Tennessee.

Mats and Integrated Services — This segment provides mat rentals, location construction and related site services to oil and gas customers at well, production, transportation and refinery locations in the Northeast U.S. region, onshore U.S. Gulf Coast, and Rocky Mountain regions, and mat rentals to the petrochemical industry in the U.S. and utility industry in the U.K. These mats provide environmental protection and ensure all-weather access to sites with unstable soil conditions.

We manufacture our DuraBasecomposite mat system for sales as well as for use in our domestic and international rental operations. Our marketing efforts for this product remain focused in principal oil and gas industry markets which include the Asia Pacific, Latin America, EMEA, as well as markets outside the E&P sector in the U.S. and Europe. We believe these mats have worldwide applications outside our traditional oilfield market, primarily in infrastructure construction, maintenance and upgrades of electric utility transmission lines, military logistics and as temporary roads for movement of oversized or unusually heavy loads.

Environmental Services — This segment provides disposal services for both oilfield E&P waste and industrial waste. The primary method used for disposal is low pressure injection into environmentally secure geologic formations deep underground. This segment operates in the U.S. Gulf Coast and West Texas markets.

Summarized financial information concerning our reportable segments is shown in the following tables:

	Year Ended December 31,
(In thousands)	2012			2011			2010
Revenues
Fluids Systems & Engineering	$	861,670		$	798,957		$	597,795
Mats & Integrated Services		122,283			110,411			69,397
Environmental Services		54,066			48,812			48,762
Total Revenues	$	1,038,019		$	958,180		$	715,954
Depreciation and Amortization
Fluids Systems & Engineering	$	18,419		$	17,126		$	15,253
Mats & Integrated Services		7,952			7,581			7,672
Environmental Services		3,875			3,016			3,169
Corporate Office		2,575			1,248			916
Total Depreciation and Amortization	$	32,821		$	28,971		$	27,010
Operating Income (loss)
Fluids Systems & Engineering	$	59,987		$	90,683		$	56,234
Mats & Integrated Services		54,251			52,678			26,684
Environmental Services		13,622			11,909			13,447
Corporate Office		(21,963	)		(22,506	)		(18,361	)
Operating Income	$	105,897		$	132,764		$	78,004
Segment Assets
Fluids Systems & Engineering	$	790,147		$	673,794		$	476,677
Mats & Integrated Services		81,252			93,078			79,957
Environmental Services		76,604			70,122			69,058
Corporate		46,538			49,843			111,650
Total Assets	$	994,541		$	886,837		$	737,342
Capital Expenditures
Fluids Systems & Engineering	$	27,916		$	16,033		$	7,033
Mats & Integrated Services		8,174			7,629			2,253
Environmental Services		1,558			1,693			738
Corporate		6,307			11,542			2,110
Total Capital Expenditures	$	43,955		$	36,897		$	12,134

The following table sets forth information about our operations by geographic area. Revenues by geographic location are determined based on the operating location from which services are rendered or products are sold.

	Year Ended December 31,
(In thousands)	2012		2011		2010
Revenue
United States	$	738,150	$	690,205	$	516,786
Canada		48,643		51,713		23,846
EMEA		121,175		115,319		113,295
Latin America and Mexico		88,157		76,355		62,027
Asia Pacific		41,894		24,588		-
Total Revenue	$	1,038,019	$	958,180	$	715,954
Long-Lived Assets
United States	$	304,954	$	252,751	$	243,194
Canada		11,830		11,730		12,334
EMEA		30,729		25,814		26,380
Latin America and Mexico		11,158		12,920		14,904
Asia Pacific		31,539		29,463		-
Total Long-Lived Assets	$	390,210	$	332,678	$	296,812

No single customer accounted for more than 10% of our consolidated revenues for years ended December 31, 2012, 2011 or 2010.