Delaware | 82-3066826 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2445 Technology Forest Blvd | ||
Building 4, | ||
The Woodlands, | Texas | 77381 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, $0.01 par value | APY | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
PART I | Page |
PART II | |
PART III | |
PART IV | |
• | Electric Submersible Pump (“ESP”)—Our ESPs are fully integrated and customizable systems that are used during the earlier stages of production when barrels per day volume is at its highest level. Our ESP products include centrifugal pumps, gas handling devices, motors, controls and digital solutions to monitor and optimize ESP performance. |
• | Gas Lift—Gas lift is a method of artificial lift that involves injecting high pressure gas to lift oil from a well. Gas lift is a preferred artificial lift for deviated wells and wells characterized by large amounts of sand or solid materials. We have been delivering innovative and flexible gas lift solutions to our customers for more than 30 years. Our software takes into account the complexity and production characteristics of the well to deliver the best gas lift solution for each well. |
• | Rod Pumping Systems (“Rod Lift”)—As well production extends beyond the initial years, operators typically begin to employ a Rod Lift extraction solution. Our Rod Lift solutions include standard and fit-for-purpose sucker rods and accessories as well as a full range of downhole pumps that address all rod pumping applications. Rod Lift is one of the more prevalent lift solutions employed in wells in the United States and internationally. Our Rod Lift business provides for significant recurring revenue as sucker rods, pumps and accessories are replaced with use. |
• | Progressive Cavity Pumps (“PCP”) Plunger, Hydraulic and Jet Lift Systems—We offer a full range of PCP solutions including top drives, high performance pumps, drive rods and controls; a broad range of plunger lift systems including surface, downhole equipment and controllers; and a full range of hydraulic and jet lift systems including jet pumps, hydraulic reciprocating pumps, surface multiplex pumps and automation controllers. These solutions are typically used in wells that have been producing for multiple years and are essential for increasing productivity at lower production volumes. |
• | Production Optimization Solutions—Controllers and software solutions, including proprietary cloud-based software, to monitor and optimize artificial lift and production. Software is sold on a subscription based model and can be tailored to a breadth of customer requirements, resulting in a fit-for-purpose solution. |
• | Downhole Monitoring Solutions—Quartz pressure transducers and smart downhole tools for measuring, monitoring and logging downhole well conditions to improve well productivity. |
• | Asset Integrity Management Solutions—End-to-end digital IIoT solutions and portable analyzers to monitor, predict, and optimize health and performance of reciprocating compressors and engines used in wellsites, pipelines, refineries and chemical plants. |
• | PDC Drill Bit Inserts—Custom designed and manufactured drill bit inserts. |
• | Diamond Bearings—Long-lasting diamond bearings for process-fluid lubricated applications, including underwater applications, downhole drilling tools and industrial pumps. |
Name | Age | Current Position and Business Experience | ||
Sivasankaran Somasundaram | President and Chief Executive Officer (2018) Vice President of Dover Corporation and President and Chief Executive Officer of Dover Energy (2013) | |||
Jay A. Nutt | Senior Vice President and Chief Financial Officer (2018) Senior Vice President and Chief Financial Officer—Dover Energy of Dover Corporation (2018) Senior Vice President and Controller of TechnipFMC plc (2017) Vice President, Controller and Treasurer of FMC Technologies, Inc. (2015) Vice President and Controller of FMC Technologies, Inc. (2009) | |||
Amy Thompson Broussard | Senior Vice President and Chief Human Resources Officer (2018) Vice President, Human Resources—Dover Energy of Dover Corporation (2016) Vice President of Human Resources—Dover Artificial Lift of Dover Corporation (2014) Director of Human Resources—Western Hemisphere HR Service Centers of Baker Hughes Inc. (2013) | |||
Robert K. Galloway | President, Drilling Technologies (2018) President—US Synthetic of Dover Corporation (2010) | |||
Paul E. Mahoney | President, Production & Automation Technologies (2018) President—Dover Artificial Lift of Dover Corporation (2014) Chief Operations Officer and Senior Vice President of Global Sales and Operations—Dover Artificial Lift of Dover Corporation (2012) | |||
Syed Raza | Senior Vice President and Chief Digital Officer (2018) President—Dover Energy Automation of Dover Corporation (2016) Vice President and General Manager—Advanced Solutions of Honeywell Process Solutions (2014) General Manager Advanced Solutions—Europe, Middle East & Africa of Honeywell Process Solutions (2013) | |||
Julia Wright | Senior Vice President, General Counsel and Secretary (2018) Senior Vice President, General Counsel and Secretary—Dover Energy of Dover Corporation (2018) Vice President and General Counsel of Nabors Industries Ltd. (2016) Interim General Counsel of Nabors Industries Ltd. (2016) Assistant General Counsel of Nabors Industries Ltd. (2013) |
Manufacturing | Warehouse | Sales / Service/Other | Total | Manufacturing | Warehouse | Sales / Service/Other | Total | |||||||||||||||
Production & Automation Technologies | 22 | 74 | 55 | 151 | 17 | 52 | 78 | 147 | ||||||||||||||
Drilling Technologies | 1 | — | 1 | 2 | 3 | — | 1 | 4 |
North America | Australia | Other | Total | North America | Australia | Other | Total | |||||||||||||||
Production & Automation Technologies | 130 | 4 | 17 | 151 | 132 | 4 | 11 | 147 | ||||||||||||||
Drilling Technologies | 2 | — | — | 2 | 4 | — | — | 4 |
Closing stock price at December 31, 2018 | $ | 27.08 | |
Closing stock price at January 31, 2019 | $ | 33.62 | |
Number of common stockholders of record at January 31, 2019 | 1,206 |
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans | |||||||
Equity compensation plans approved by security holders (1) | 477,950 | $ | 29.43 | 6,461,864 | |||||
Equity compensation plans not approved by security holders | — | — | — | ||||||
Total | 477,950 | $ | 29.43 | 6,461,864 |
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2018 | 2017 | 2016 | 2015 | 2014(1) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||
Statement of income (loss) data: | ||||||||||||||||||||||||||||||||||||||
Revenue | $ | 1,216,646 | $ | 1,010,466 | $ | 751,337 | $ | 1,076,680 | $ | 1,530,631 | $ | 1,131,251 | $ | 1,218,156 | $ | 1,010,466 | $ | 751,337 | $ | 1,076,680 | ||||||||||||||||||
Gross profit | 416,299 | 320,476 | 195,271 | 334,639 | 621,091 | 377,104 | 417,004 | 320,068 | 195,091 | 382,978 | ||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 28,796 | (21,876 | ) | (8,043 | ) | 24,131 | 110,323 | 6,226 | 28,162 | (22,164 | ) | (8,459 | ) | 24,131 | ||||||||||||||||||||||||
Net income (loss) | 94,495 | 112,664 | (10,900 | ) | 53,134 | 223,496 | 52,960 | 93,191 | 110,519 | (11,615 | ) | 53,134 | ||||||||||||||||||||||||||
Net income (loss) attributable to Apergy | 94,041 | 111,734 | (12,751 | ) | 51,698 | 222,707 | 52,164 | 92,737 | 109,589 | (13,466 | ) | 51,698 | ||||||||||||||||||||||||||
Earnings (loss) per share attributable to Apergy(3): | ||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share attributable to Apergy(1): | ||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.22 | $ | 1.44 | $ | (0.16 | ) | $ | 0.67 | $ | 2.88 | $ | 0.67 | $ | 1.20 | $ | 1.42 | $ | (0.17 | ) | $ | 0.67 | ||||||||||||||||
Diluted | $ | 1.21 | $ | 1.43 | $ | (0.16 | ) | $ | 0.66 | $ | 2.86 | $ | 0.67 | $ | 1.19 | $ | 1.41 | $ | (0.17 | ) | $ | 0.66 | ||||||||||||||||
As of December 31 | 2018 | 2017 | 2016 | 2015 | 2014(1) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||
Balance sheet data: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 41,832 | $ | 23,712 | $ | 26,027 | $ | 10,417 | $ | 24,355 | $ | 35,290 | $ | 41,832 | $ | 23,712 | $ | 26,012 | $ | 10,417 | ||||||||||||||||||
Property, plant and equipment, net | 244,328 | 213,562 | 202,528 | 232,886 | 250,482 | 248,181 | 244,328 | 213,562 | 202,528 | 232,886 | ||||||||||||||||||||||||||||
Total assets | 1,971,756 | 1,906,615 | 1,851,676 | 1,983,379 | 2,218,752 | 1,922,825 | 1,973,116 | 1,906,408 | 1,851,714 | 1,983,377 | ||||||||||||||||||||||||||||
Long-term debt | 666,108 | 5,806 | 2,809 | 3.282 | 3,516 | 559,821 | 663,207 | 5,806 | 2,954 | 3,436 | ||||||||||||||||||||||||||||
Total Apergy stockholders’ equity | 979,069 | — | — | — | — | 1,032,960 | 973,525 | — | — | — | ||||||||||||||||||||||||||||
Total Parent Company equity | — | 1,635,636 | 1,546,322 | 1,639,865 | 1,793,176 | — | — | 1,630,760 | 1,543,473 | 1,637,837 | ||||||||||||||||||||||||||||
Years Ended December 31 | 2018 | 2017 | 2016 | 2015 | 2014(1) | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||
Statement of cash flows data: | ||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 163,900 | $ | 76,050 | $ | 132,991 | $ | 215,671 | $ | 280,990 | $ | 155,899 | $ | 163,900 | $ | 76,050 | $ | 132,991 | $ | 215,671 | ||||||||||||||||||
Net cash required by investing activities | (54,205 | ) | (41,949 | ) | (27,273 | ) | (34,101 | ) | (660,177 | ) | (49,876 | ) | (54,205 | ) | (41,949 | ) | (27,273 | ) | (34,101 | ) | ||||||||||||||||||
Net cash provided by (used in) financing activities | (90,838 | ) | (36,693 | ) | (90,018 | ) | (194,977 | ) | 389,149 | |||||||||||||||||||||||||||||
Net cash required by financing activities | (112,403 | ) | (90,838 | ) | (36,693 | ) | (90,018 | ) | (194,977 | ) |
2017 | 2018 | 2018 | 2019 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |||||||||||||||||||||||
WTI crude ($ per bbl) (a) | 51.62 | 48.10 | 48.15 | 55.23 | 50.81 | 62.91 | 68.07 | 69.69 | 59.50 | 65.04 | 62.91 | 68.07 | 69.69 | 59.50 | 65.07 | 54.82 | 59.88 | 56.34 | 56.86 | 56.99 | ||||||||||||||||||||||
Brent crude ($ per bbl) (a) | 53.59 | 49.55 | 52.10 | 61.40 | 54.12 | 66.86 | 74.53 | 75.08 | 67.99 | 71.12 | 66.86 | 74.53 | 75.08 | 67.99 | 71.09 | 63.10 | 60.56 | 61.95 | 63.27 | 62.22 | ||||||||||||||||||||||
Henry Hub natural gas ($ per mmBtu) (a) | 3.02 | 3.08 | 2.95 | 2.91 | 2.99 | 3.08 | 2.85 | 2.93 | 3.77 | 3.16 | 3.08 | 2.85 | 2.93 | 3.77 | 3.16 | 2.92 | 2.57 | 2.38 | 2.40 | 2.56 | ||||||||||||||||||||||
U.S. rig count (b) | 742 | 895 | 946 | 921 | 876 | 966 | 1,039 | 1,051 | 1,073 | 1,032 | 966 | 1,039 | 1,051 | 1,073 | 1,032 | 1,043 | 989 | 920 | 820 | 941 | ||||||||||||||||||||||
Canada rig count (b) | 295 | 117 | 208 | 204 | 206 | 269 | 108 | 209 | 179 | 191 | 269 | 108 | 209 | 179 | 191 | 183 | 82 | 132 | 139 | 134 | ||||||||||||||||||||||
International rig count (b) | 939 | 958 | 947 | 949 | 948 | 970 | 968 | 1,003 | 1,011 | 988 | 970 | 968 | 1,003 | 1,011 | 988 | 1,030 | 1,051 | 1,059 | 1,056 | 1,049 | ||||||||||||||||||||||
Worldwide rig count | 1,976 | 1,970 | 2,101 | 2,074 | 2,030 | 2,205 | 2,115 | 2,263 | 2,263 | 2,211 | 2,205 | 2,115 | 2,263 | 2,263 | 2,211 | 2,256 | 2,122 | 2,111 | 2,015 | 2,124 | ||||||||||||||||||||||
U.S. well completions (a) | 788 | 961 | 1,051 | 1,070 | 967 | 1,097 | 1,232 | 1,248 | 1,277 | 1,213 | 3,413 | 3,909 | 3,896 | 3,497 | 14,715 | 3,814 | 4,161 | 4,193 | 3,639 | 15,807 |
Years Ended December 31, | 2018 vs. 2017 | 2017 vs. 2016 | Years Ended December 31, | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2016 | $ | % | $ | % | 2019 | 2018 | 2017 | $ | % | $ | % | ||||||||||||||||||||||||||||||||
Revenue | $ | 1,216,646 | $ | 1,010,466 | $ | 751,337 | 206,180 | 20.4 | 259,129 | 34.5 | $ | 1,131,251 | $ | 1,218,156 | $ | 1,010,466 | (86,905 | ) | (7.1 | ) | 207,690 | 20.6 | ||||||||||||||||||||||||
Cost of goods and services | 800,347 | 689,990 | 556,066 | 110,357 | 16.0 | 133,924 | 24.1 | 754,147 | 801,152 | 690,398 | (47,005 | ) | (5.9 | ) | 110,754 | 16.0 | ||||||||||||||||||||||||||||||
Gross profit | 416,299 | 320,476 | 195,271 | 95,823 | 29.9 | 125,205 | 64.1 | 377,104 | 417,004 | 320,068 | (39,900 | ) | (9.6 | ) | 96,936 | 30.3 | ||||||||||||||||||||||||||||||
Selling, general and administrative expense | 262,625 | 218,558 | 204,383 | 44,067 | 20.2 | 14,175 | 6.9 | 276,014 | 264,947 | 221,407 | 11,067 | 4.2 | 43,540 | 19.7 | ||||||||||||||||||||||||||||||||
Interest expense, net | 27,440 | 753 | 477 | 26,687 | * | 276 | * | 39,301 | 27,648 | 863 | 11,653 | * | 26,785 | * | ||||||||||||||||||||||||||||||||
Other expense, net | 2,943 | 10,377 | 9,354 | (7,434 | ) | * | 1,023 | * | 2,603 | 3,056 | 9,443 | (453 | ) | * | (6,387 | ) | * | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 123,291 | 90,788 | (18,943 | ) | 32,503 | 35.8 | 109,731 | 579.3 | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | 59,186 | 121,353 | 88,355 | (62,167 | ) | (51.2 | ) | 32,998 | 37.3 | |||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 28,796 | (21,876 | ) | (8,043 | ) | 50,672 | 231.6 | (13,833 | ) | (172.0 | ) | 6,226 | 28,162 | (22,164 | ) | (21,936 | ) | (77.9 | ) | 50,326 | 227.1 | |||||||||||||||||||||||||
Net income (loss) | 94,495 | 112,664 | (10,900 | ) | (18,169 | ) | (16.1 | ) | 123,564 | 1,133.6 | ||||||||||||||||||||||||||||||||||||
Net income | 52,960 | 93,191 | 110,519 | (40,231 | ) | (43.2 | ) | (17,328 | ) | (15.7 | ) | |||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 454 | 930 | 1,851 | (476 | ) | * | (921 | ) | * | 796 | 454 | 930 | 342 | * | (476 | ) | * | |||||||||||||||||||||||||||||
Net income (loss) attributable to Apergy | $ | 94,041 | $ | 111,734 | $ | (12,751 | ) | (17,693 | ) | (15.8 | ) | 124,485 | 976.3 | |||||||||||||||||||||||||||||||||
Net income attributable to Apergy | $ | 52,164 | $ | 92,737 | $ | 109,589 | (40,573 | ) | (43.8 | ) | (16,852 | ) | (15.4 | ) | ||||||||||||||||||||||||||||||||
Gross profit margin | 34.2 | % | 31.7 | % | 26.0 | % | 250 bps. | 570 bps. | 33.3 | % | 34.2 | % | 31.7 | % | (90) bps. | 250 bps. | ||||||||||||||||||||||||||||||
SG&A expense, percent of revenue | 21.6 | % | 21.6 | % | 27.2 | % | 0 bps. | (560) bps. | 24.4 | % | 21.7 | % | 21.9 | % | 270 bps. | (20) bps. | ||||||||||||||||||||||||||||||
Effective tax rate | 23.4 | % | (24.1 | )% | 42.5 | % | 4,750 bps. | (6,660) bps. | 10.5 | % | 23.2 | % | (25.1 | )% | (1,270) bps. | 4,830 bps. |
Years Ended December 31, | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | 2017 | $ | % | $ | % | ||||||||||||||||
Revenue | $ | 884,364 | $ | 932,591 | $ | 782,813 | (48,227 | ) | (5.2 | ) | 149,778 | 19.1 | |||||||||||
Operating profit | 54,024 | 74,187 | 24,567 | (20,163 | ) | (27.2 | ) | 49,620 | 202.0 | ||||||||||||||
Operating profit margin | 6.1 | % | 8.0 | % | 3.1 | % | -190 bps. | 490 bps. | |||||||||||||||
Depreciation and amortization | $ | 110,131 | $ | 112,955 | $ | 100,912 | (2,824 | ) | (2.5 | ) | 12,043 | 11.9 | |||||||||||
Royalty expense | — | 2,277 | 9,765 | (2,277 | ) | * | (7,488 | ) | (76.7 | ) | |||||||||||||
Restructuring and other related charges | 10,308 | 4,347 | 6,921 | 5,961 | * | (2,574 | ) | * | |||||||||||||||
Environmental costs | 1,988 | — | — | 1,988 | * | — | * | ||||||||||||||||
Bookings | $ | 881,106 | $ | 941,302 | $ | 792,798 | (60,196 | ) | (6.4 | ) | 148,504 | 18.7 |
Years Ended December 31, | 2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2016 | $ | % | $ | % | ||||||||||||||
Revenue | $ | 931,081 | $ | 782,813 | $ | 638,017 | 148,268 | 18.9 | 144,796 | 22.7 | |||||||||||
Operating profit (loss) | 75,918 | 26,890 | (21,744 | ) | 49,028 | 182.3 | 48,634 | 223.7 | |||||||||||||
Operating profit (loss) margin | 8.2 | % | 3.4 | % | (3.4 | )% | 480 bps. | 680 bps. | |||||||||||||
Depreciation and amortization | $ | 112,955 | $ | 100,912 | $ | 99,664 | 12,043 | 11.9 | 1,248 | 1.3 | |||||||||||
Royalty expense | 2,277 | 9,765 | 7,366 | (7,488 | ) | * | 2,399 | 32.6 | |||||||||||||
Restructuring and other related charges | 4,347 | 6,921 | 12,757 | (2,574 | ) | * | (5,836 | ) | * | ||||||||||||
Other measures: | |||||||||||||||||||||
Bookings | $ | 941,302 | $ | 792,798 | $ | 625,149 | 148,504 | 18.7 | 167,649 | 26.8 | |||||||||||
Book-to-bill ratio | 1.01 | 1.01 | 0.98 |
Years Ended December 31, | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | 2017 | $ | % | $ | % | ||||||||||||||||
Revenue | $ | 246,887 | $ | 285,565 | $ | 227,653 | (38,678 | ) | (13.5 | ) | 57,912 | 25.4 | |||||||||||
Operating profit | 73,497 | 98,620 | 74,317 | (25,123 | ) | (25.5 | ) | 24,303 | 32.7 | ||||||||||||||
Operating profit margin | 29.8 | % | 34.5 | % | 32.6 | % | -470 bps. | 190 bps. | |||||||||||||||
Depreciation and amortization | $ | 9,263 | $ | 11,037 | $ | 11,950 | (1,774 | ) | (16.1 | ) | (913 | ) | (7.6 | ) | |||||||||
Restructuring and other related charges | 710 | — | — | 710 | — | * | |||||||||||||||||
Bookings | $ | 236,282 | $ | 293,473 | $ | 232,796 | (57,191 | ) | (19.5 | ) | 60,677 | 26.1 |
Years Ended December 31, | 2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2016 | $ | % | $ | % | ||||||||||||||||
Revenue | $ | 285,565 | $ | 227,653 | $ | 113,320 | 57,912 | 25.4 | 114,333 | 100.9 | |||||||||||||
Operating profit | 98,620 | 74,317 | 8,397 | 24,303 | 32.7 | 65,920 | 785.0 | ||||||||||||||||
Operating profit margin | 34.5 | % | 32.6 | % | 7.4 | % | 190 bps. | 2,520 bps. | |||||||||||||||
Depreciation and amortization | $ | 11,037 | $ | 11,950 | $ | 12,448 | (913 | ) | (7.6 | ) | (498 | ) | (4.0 | ) | |||||||||
Restructuring and other related charges | — | — | 2,405 | — | (2,405 | ) | * | ||||||||||||||||
Other measures: | |||||||||||||||||||||||
Bookings | $ | 293,473 | $ | 232,796 | $ | 118,433 | 60,677 | 26.1 | 114,363 | 96.6 | |||||||||||||
Book-to-bill ratio | 1.03 | 1.02 | 1.05 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | ||||||||||||||||
Cash provided by operating activities | $ | 163,900 | $ | 76,050 | $ | 132,991 | $ | 155,899 | $ | 163,900 | $ | 76,050 | ||||||||||
Cash required by investing activities | (54,205 | ) | (41,949 | ) | (27,273 | ) | (49,876 | ) | (54,205 | ) | (41,949 | ) | ||||||||||
Cash required by financing activities | (90,838 | ) | (36,693 | ) | (90,018 | ) | (112,403 | ) | (90,838 | ) | (36,693 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (737 | ) | 277 | (90 | ) | (162 | ) | (737 | ) | 277 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 18,120 | $ | (2,315 | ) | $ | 15,610 | $ | (6,542 | ) | $ | 18,120 | $ | (2,315 | ) |
(in thousands) | December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | ||||||||||
Revolving credit facility | $ | — | $ | — | $ | — | $ | — | ||||||
Term loan facility | 370,000 | — | 265,000 | 370,000 | ||||||||||
6.375% Senior Notes due 2026 | 300,000 | — | 300,000 | 300,000 | ||||||||||
Capital lease obligations | 7,485 | 5,806 | 4,530 | 4,584 | ||||||||||
Total borrowings | $ | 677,485 | $ | 5,806 | $ | 569,530 | $ | 674,584 |
(in millions) | Amount | Debt Outstanding | Letters of Credit | Unused Capacity | Maturity | Amount | Debt Outstanding | Letters of Credit | Unused Capacity | Maturity | ||||||||||||||||||||||||
Five-year revolving credit facility | $ | 250.0 | $ | — | $ | 3.6 | $ | 246.4 | May 2023 | $ | 250.0 | $ | — | $ | 6.2 | $ | 243.8 | May 2023 |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||
(in thousands) | Total Payments | Less than 1 year | 1-3 years | 3-5 years | After 5 years | Total Payments | Less than 1 year | 1-3 years | 3-5 years | After 5 years | ||||||||||||||||||||||||||||
Long-term debt | $ | 670,000 | $ | — | $ | — | $ | — | $ | 670,000 | $ | 565,000 | $ | — | $ | — | $ | — | $ | 565,000 | ||||||||||||||||||
Interest on long-term debt (1) | 143,544 | 19,125 | 38,250 | 38,250 | 47,919 | 124,419 | 19,125 | 38,250 | 38,250 | 28,794 | ||||||||||||||||||||||||||||
Operating leases | 68,742 | 14,781 | 24,008 | 21,219 | 8,734 | 32,433 | 9,096 | 11,086 | 7,362 | 4,889 | ||||||||||||||||||||||||||||
Purchase obligations | 46,272 | 43,103 | 3,169 | — | — | 37,243 | 34,743 | 2,500 | — | — | ||||||||||||||||||||||||||||
Capital leases | 8,214 | 4,447 | 3,623 | 119 | 25 | |||||||||||||||||||||||||||||||||
Finance leases | 9,950 | 5,219 | 4,542 | 189 | — | |||||||||||||||||||||||||||||||||
Supplemental and post-retirement benefits (2) | 18,105 | 2,105 | 4,133 | 3,981 | 7,886 | 19,506 | 2,231 | 4,517 | 3,774 | 8,984 | ||||||||||||||||||||||||||||
Total contractual obligations | $ | 954,877 | $ | 83,561 | $ | 73,183 | $ | 63,569 | $ | 734,564 | $ | 788,551 | $ | 70,414 | $ | 60,895 | $ | 49,575 | $ | 607,667 |
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2019, 2018 and 2017 | |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | ||||||||||||||||
Product revenue | $ | 1,085,471 | $ | 919,669 | $ | 673,447 | $ | 1,000,630 | $ | 1,090,218 | $ | 922,692 | ||||||||||
Service revenue | 83,155 | 63,386 | 50,816 | |||||||||||||||||||
Lease and other revenue | 48,020 | 27,411 | 27,074 | |||||||||||||||||||
Other revenue | 130,621 | 127,938 | 87,774 | |||||||||||||||||||
Total revenue | 1,216,646 | 1,010,466 | 751,337 | 1,131,251 | 1,218,156 | 1,010,466 | ||||||||||||||||
Cost of goods and services | 800,347 | 689,990 | 556,066 | 754,147 | 801,152 | 690,398 | ||||||||||||||||
Gross profit | 416,299 | 320,476 | 195,271 | 377,104 | 417,004 | 320,068 | ||||||||||||||||
Selling, general and administrative expense | 262,625 | 218,558 | 204,383 | 276,014 | 264,947 | 221,407 | ||||||||||||||||
Interest expense, net | 27,440 | 753 | 477 | 39,301 | 27,648 | 863 | ||||||||||||||||
Other expense, net | 2,943 | 10,377 | 9,354 | 2,603 | 3,056 | 9,443 | ||||||||||||||||
Income (loss) before income taxes | 123,291 | 90,788 | (18,943 | ) | ||||||||||||||||||
Income before income taxes | 59,186 | 121,353 | 88,355 | |||||||||||||||||||
Provision for (benefit from) income taxes | 28,796 | (21,876 | ) | (8,043 | ) | 6,226 | 28,162 | (22,164 | ) | |||||||||||||
Net income (loss) | 94,495 | 112,664 | (10,900 | ) | ||||||||||||||||||
Net income | 52,960 | 93,191 | 110,519 | |||||||||||||||||||
Net income attributable to noncontrolling interest | 454 | 930 | 1,851 | 796 | 454 | 930 | ||||||||||||||||
Net income (loss) attributable to Apergy | $ | 94,041 | $ | 111,734 | $ | (12,751 | ) | |||||||||||||||
Net income attributable to Apergy | $ | 52,164 | $ | 92,737 | $ | 109,589 | ||||||||||||||||
Earnings (loss) per share attributable to Apergy: * | ||||||||||||||||||||||
Earnings per share attributable to Apergy: * | ||||||||||||||||||||||
Basic | $ | 1.22 | $ | 1.44 | $ | (0.16 | ) | $ | 0.67 | $ | 1.20 | $ | 1.42 | |||||||||
Diluted | $ | 1.21 | $ | 1.43 | $ | (0.16 | ) | $ | 0.67 | $ | 1.19 | $ | 1.41 | |||||||||
Weighted-average shares outstanding: * | ||||||||||||||||||||||
Basic | 77,342 | 77,340 | 77,340 | 77,427 | 77,342 | 77,340 | ||||||||||||||||
Diluted | 77,692 | 77,890 | 77,340 | 77,624 | 77,692 | 77,890 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | ||||||||||||||||
Net income (loss) | $ | 94,495 | $ | 112,664 | $ | (10,900 | ) | |||||||||||||||
Net income | $ | 52,960 | $ | 93,191 | $ | 110,519 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||
Foreign currency translation adjustments (1) | (14,210 | ) | 4,385 | 925 | 936 | (14,210 | ) | 4,385 | ||||||||||||||
Pension and other post-retirement benefit plans: | ||||||||||||||||||||||
Net actuarial gain (loss) arising during period | 856 | 2,598 | (123 | ) | (2,521 | ) | 856 | 2,598 | ||||||||||||||
Prior service cost arising during period | (190 | ) | — | — | ||||||||||||||||||
Reclassification adjustment for net actuarial loss included in net income | 247 | 257 | 234 | 272 | 247 | 257 | ||||||||||||||||
Reclassification adjustment for prior service costs included in net income | — | 1 | 1 | 1 | — | 1 | ||||||||||||||||
Reclassification adjustment for settlement losses included in net income | 353 | — | — | 371 | 353 | — | ||||||||||||||||
Total pension and other post-retirement benefit plans (2) | 1,456 | 2,856 | 112 | (2,067 | ) | 1,456 | 2,856 | |||||||||||||||
Other comprehensive income (loss) | (12,754 | ) | 7,241 | 1,037 | (1,131 | ) | (12,754 | ) | 7,241 | |||||||||||||
Comprehensive income (loss) | 81,741 | 119,905 | (9,863 | ) | ||||||||||||||||||
Comprehensive income | 51,829 | 80,437 | 117,760 | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | 454 | 930 | 1,851 | 796 | 454 | 930 | ||||||||||||||||
Comprehensive income (loss) attributable to Apergy | $ | 81,287 | $ | 118,975 | $ | (11,714 | ) | |||||||||||||||
Comprehensive income attributable to Apergy | $ | 51,033 | $ | 79,983 | $ | 116,830 |
(in thousands) | December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 41,832 | $ | 23,712 | $ | 35,290 | $ | 41,832 | ||||||
Receivables, net of allowances of $5,178 in 2018 and $4,753 in 2017 | 249,948 | 201,449 | ||||||||||||
Receivables, net of allowances of $8,072 in 2019 and $4,745 in 2018 | 219,874 | 251,436 | ||||||||||||
Inventories, net | 218,319 | 201,402 | 211,342 | 219,421 | ||||||||||
Prepaid expenses and other current assets | 20,211 | 14,912 | 26,934 | 18,534 | ||||||||||
Total current assets | 530,310 | 441,475 | 493,440 | 531,223 | ||||||||||
Property, plant and equipment, net | 244,328 | 213,562 | 248,181 | 244,328 | ||||||||||
Goodwill | 904,985 | 910,088 | 911,113 | 904,985 | ||||||||||
Intangible assets, net | 283,688 | 338,510 | 238,707 | 283,688 | ||||||||||
Other non-current assets | 8,445 | 2,980 | 31,384 | 8,892 | ||||||||||
Total assets | 1,971,756 | 1,906,615 | 1,922,825 | 1,973,116 | ||||||||||
Liabilities and Equity | ||||||||||||||
Accounts payable | 131,058 | 98,826 | 120,291 | 140,125 | ||||||||||
Accrued compensation and employee benefits | 40,546 | 30,289 | 38,470 | 40,546 | ||||||||||
Current portion of finance lease liabilities | 4,845 | 4,320 | ||||||||||||
Accrued expenses and other current liabilities | 30,391 | 21,375 | 36,075 | 28,761 | ||||||||||
Total current liabilities | 201,995 | 150,490 | 199,681 | 213,752 | ||||||||||
Long-term debt | 666,108 | 5,806 | 559,821 | 663,207 | ||||||||||
Deferred income taxes | 101,724 | 96,985 | 84,060 | 99,772 | ||||||||||
Other long-term liabilities | 20,402 | 12,949 | 43,049 | 20,402 | ||||||||||
Total liabilities | 990,229 | 266,230 | 886,611 | 997,133 | ||||||||||
Stockholders’ equity: | ||||||||||||||
Common stock (2.5 billion shares authorized, $0.01 par value) 2018—77.4 million shares issued and outstanding | 774 | — | ||||||||||||
Common stock (2.5 billion shares authorized, $0.01 par value) 77.5 million shares and 77.4 million shares issued and outstanding in 2019 and 2018, respectively | 775 | 774 | ||||||||||||
Capital in excess of par value of common stock | 965,372 | — | 969,174 | 960,773 | ||||||||||
Retained earnings | 55,829 | — | 107,048 | 54,884 | ||||||||||
Net parent investment in Apergy | — | 1,662,052 | ||||||||||||
Accumulated other comprehensive loss | (42,906 | ) | (26,416 | ) | (44,037 | ) | (42,906 | ) | ||||||
Total stockholders’ equity | 979,069 | 1,635,636 | 1,032,960 | 973,525 | ||||||||||
Noncontrolling interest | 2,458 | 4,749 | 3,254 | 2,458 | ||||||||||
Total equity | 981,527 | 1,640,385 | 1,036,214 | 975,983 | ||||||||||
Total liabilities and equity | $ | 1,971,756 | $ | 1,906,615 | $ | 1,922,825 | $ | 1,973,116 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | ||||||||||||||||
Cash provided (required) by operating activities: | ||||||||||||||||||||||
Net income (loss) | $ | 94,495 | $ | 112,664 | $ | (10,900 | ) | |||||||||||||||
Net income | $ | 52,960 | $ | 93,191 | $ | 110,519 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided (required) by operating activities: | ||||||||||||||||||||||
Depreciation | 72,569 | 59,161 | 56,125 | 68,557 | 72,569 | 59,161 | ||||||||||||||||
Amortization | 51,892 | 53,701 | 55,987 | 51,381 | 51,892 | 53,701 | ||||||||||||||||
Stock-based compensation | 5,375 | 2,236 | 2,293 | 10,250 | 5,375 | 2,236 | ||||||||||||||||
Gain on sale of fixed assets and business, net | (1,173 | ) | (934 | ) | (366 | ) | ||||||||||||||||
Impairment of fixed assets | 990 | 3,581 | — | |||||||||||||||||||
Loss (gain) on sale of fixed assets and business, net | 429 | (1,173 | ) | (934 | ) | |||||||||||||||||
Impairment of long-lived assets | 1,874 | 990 | 3,581 | |||||||||||||||||||
Provision for doubtful accounts | 4,955 | 2,007 | 954 | |||||||||||||||||||
Amortization of deferred loan costs and accretion of discount | 2,590 | 1,671 | — | |||||||||||||||||||
Deferred income taxes | 1,914 | (73,268 | ) | (19,994 | ) | (13,874 | ) | 1,492 | (73,501 | ) | ||||||||||||
Employee benefit plan expense | 3,340 | 1,064 | 1,128 | 1,883 | 3,340 | 1,064 | ||||||||||||||||
Other | 5,563 | (5,188 | ) | (858 | ) | 3,464 | 1,885 | (6,142 | ) | |||||||||||||
Changes in operating assets and liabilities (net of effects of acquisitions and foreign exchange): | ||||||||||||||||||||||
Receivables | (53,890 | ) | (61,573 | ) | 26,898 | 25,948 | (55,378 | ) | (61,573 | ) | ||||||||||||
Inventories | (38,708 | ) | (14,015 | ) | 32,912 | 19,065 | (40,018 | ) | (13,808 | ) | ||||||||||||
Prepaid expenses and other current assets | (5,422 | ) | (5,116 | ) | 3,156 | (10,742 | ) | (3,750 | ) | (5,116 | ) | |||||||||||
Accounts payable | 35,185 | 29,802 | (9,874 | ) | (20,526 | ) | 40,393 | 31,827 | ||||||||||||||
Accrued compensation and employee benefits | 8,454 | 5,616 | (2,122 | ) | (6,358 | ) | 8,454 | 5,616 | ||||||||||||||
Accrued expenses and other current liabilities | 14,004 | (311 | ) | (1,387 | ) | |||||||||||||||||
Leased assets and other | (30,688 | ) | (31,370 | ) | (7 | ) | ||||||||||||||||
Accrued expenses and other liabilities | 4,406 | 12,095 | (165 | ) | ||||||||||||||||||
Leased assets | (40,700 | ) | (25,867 | ) | (27,788 | ) | ||||||||||||||||
Other | 337 | (5,268 | ) | (3,582 | ) | |||||||||||||||||
Net cash provided by operating activities | 163,900 | 76,050 | 132,991 | 155,899 | 163,900 | 76,050 | ||||||||||||||||
Cash provided (required) by investing activities: | ||||||||||||||||||||||
Capital expenditures | (57,918 | ) | (36,654 | ) | (26,099 | ) | (39,780 | ) | (57,918 | ) | (36,654 | ) | ||||||||||
Proceeds from sale of fixed assets | 1,187 | 3,547 | 2,526 | 4,598 | 1,187 | 3,547 | ||||||||||||||||
Proceeds from sale of business | 2,473 | — | — | |||||||||||||||||||
Proceeds from (payment on) sale of businesses | (2,194 | ) | 2,473 | — | ||||||||||||||||||
Acquisition (net of cash and cash equivalents acquired) | — | (8,842 | ) | — | (12,500 | ) | — | (8,842 | ) | |||||||||||||
Addition to intangible assets | — | — | (3,700 | ) | ||||||||||||||||||
Purchase price adjustments on acquisition | 53 | — | — | — | 53 | — | ||||||||||||||||
Net cash required by investing activities | (54,205 | ) | (41,949 | ) | (27,273 | ) | (49,876 | ) | (54,205 | ) | (41,949 | ) | ||||||||||
Cash provided (required) by financing activities: | ||||||||||||||||||||||
Proceeds from long-term debt, net of discounts | 713,963 | — | — | 36,500 | 713,963 | — | ||||||||||||||||
Payment of debt issue costs | (16,006 | ) | — | — | — | (16,006 | ) | — | ||||||||||||||
Repayment of long-term debt | (45,000 | ) | (599 | ) | — | (141,500 | ) | (45,000 | ) | (599 | ) | |||||||||||
Distributions to Dover Corporation, net | (736,557 | ) | (31,192 | ) | (84,254 | ) | — | (736,557 | ) | (31,192 | ) | |||||||||||
Distribution to noncontrolling interest | (2,720 | ) | (1,212 | ) | (1,727 | ) | — | (2,720 | ) | (1,212 | ) | |||||||||||
Payment of capital lease obligations | (4,518 | ) | (3,690 | ) | (4,037 | ) | (5,555 | ) | (4,518 | ) | (3,690 | ) | ||||||||||
Payments related to taxes withheld on stock-based compensation | (1,848 | ) | — | — | ||||||||||||||||||
Net cash required by financing activities | (90,838 | ) | (36,693 | ) | (90,018 | ) | (112,403 | ) | (90,838 | ) | (36,693 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (737 | ) | 277 | (90 | ) | (162 | ) | (737 | ) | 277 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 18,120 | (2,315 | ) | 15,610 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | 23,712 | 26,027 | 10,417 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 41,832 | $ | 23,712 | $ | 26,027 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (6,542 | ) | 18,120 | (2,315 | ) | ||||||
Cash and cash equivalents at beginning of period | 41,832 | 23,712 | 26,027 | ||||||||
Cash and cash equivalents at end of period | $ | 35,290 | $ | 41,832 | $ | 23,712 | |||||
Common stock | Common stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Par Value | Capital in excess of par value | Retained Earnings | Net Parent Investment in Apergy | Accum. Other Comp. Loss | Non- controlling Interest | Total | Par Value | Capital in excess of par value | Retained Earnings | Net Parent Investment in Apergy | Accum. Other Comp. Loss | Non- controlling Interest | Total | ||||||||||||||||||||||||||||||||||||||||
December 31, 2015 | $ | — | $ | — | $ | — | $ | 1,674,559 | $ | (34,694 | ) | $ | 5,128 | $ | 1,644,993 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (12,751 | ) | — | 1,851 | (10,900 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 1,037 | — | 1,037 | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | (1,727 | ) | (1,727 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Net transfers to Dover | — | — | — | (81,964 | ) | — | — | (81,964 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (221 | ) | (221 | ) | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | — | — | — | 1,579,844 | (33,657 | ) | 5,031 | 1,551,218 | $ | — | $ | — | $ | — | $ | 1,577,130 | $ | (33,657 | ) | $ | 5,031 | $ | 1,548,504 | |||||||||||||||||||||||||||||||
Net income | — | — | — | 111,734 | — | 930 | 112,664 | — | — | — | 109,589 | — | 930 | 110,519 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 7,241 | — | 7,241 | — | — | — | — | 7,241 | — | 7,241 | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | (1,212 | ) | (1,212 | ) | — | — | — | — | — | (1,212 | ) | (1,212 | ) | ||||||||||||||||||||||||||||||||||||
Net transfers to Dover | — | — | — | (29,526 | ) | — | — | (29,526 | ) | — | — | — | (29,543 | ) | — | — | (29,543 | ) | ||||||||||||||||||||||||||||||||||||
December 31, 2017 | — | — | — | 1,662,052 | (26,416 | ) | 4,749 | 1,640,385 | — | — | — | 1,657,176 | (26,416 | ) | 4,749 | 1,635,509 | ||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes (Note 2) | — | — | — | 1,315 | (1,315 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | 1,315 | (1,315 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 55,829 | 38,212 | — | 454 | 94,495 | — | — | 54,884 | 37,853 | — | 454 | 93,191 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (12,754 | ) | — | (12,754 | ) | — | — | — | — | (12,754 | ) | — | (12,754 | ) | ||||||||||||||||||||||||||||||||||||
Net transfers to/from Dover | — | — | — | (740,269 | ) | (2,421 | ) | — | (742,690 | ) | — | — | — | (739,633 | ) | (2,421 | ) | — | (742,054 | ) | ||||||||||||||||||||||||||||||||||
Reclassification of net parent investment in Apergy | — | 961,310 | — | (961,310 | ) | — | — | — | — | 956,711 | — | (956,711 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 773 | (773 | ) | — | — | — | — | — | 773 | (773 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1 | 4,835 | — | — | — | — | 4,836 | 1 | 4,835 | — | — | — | — | 4,836 | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | (2,720 | ) | (2,720 | ) | — | — | — | — | — | (2,720 | ) | (2,720 | ) | ||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (25 | ) | (25 | ) | — | — | — | — | — | (25 | ) | (25 | ) | ||||||||||||||||||||||||||||||||||||
December 31, 2018 | $ | 774 | $ | 965,372 | $ | 55,829 | $ | — | $ | (42,906 | ) | $ | 2,458 | $ | 981,527 | 774 | 960,773 | 54,884 | — | (42,906 | ) | 2,458 | 975,983 | |||||||||||||||||||||||||||||||
Net income | — | — | 52,164 | — | — | 796 | 52,960 | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (1,131 | ) | — | (1,131 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1 | 10,249 | — | — | — | — | 10,250 | |||||||||||||||||||||||||||||||||||||||||||||||
Taxes withheld on issuance of stock-based awards | — | (1,848 | ) | — | — | — | — | (1,848 | ) | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | $ | 775 | $ | 969,174 | $ | 107,048 | $ | — | $ | (44,037 | ) | $ | 3,254 | $ | 1,036,214 |
Year Ended December 31, 2018 | |||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | ||||||||
Product revenue | $ | 1,085,471 | $ | 4,747 | $ | 1,090,218 | |||||
Other revenue (1) | 131,175 | (3,237 | ) | 127,938 | |||||||
Total revenue | 1,216,646 | 1,510 | 1,218,156 | ||||||||
Cost of goods and services | 800,347 | 805 | 801,152 | ||||||||
Gross profit | 416,299 | 705 | 417,004 | ||||||||
Selling, general and administrative expense | 262,625 | 2,322 | 264,947 | ||||||||
Interest expense, net | 27,440 | 208 | 27,648 | ||||||||
Other expense, net | 2,943 | 113 | 3,056 | ||||||||
Income before income taxes | 123,291 | (1,938 | ) | 121,353 | |||||||
Provision for income taxes | 28,796 | (634 | ) | 28,162 | |||||||
Net income | 94,495 | (1,304 | ) | 93,191 | |||||||
Net income attributable to noncontrolling interest | 454 | — | 454 | ||||||||
Net income attributable to Apergy | $ | 94,041 | $ | (1,304 | ) | $ | 92,737 | ||||
Earnings per share attributable to Apergy: | |||||||||||
Basic | $ | 1.22 | $ | (0.02 | ) | $ | 1.20 | ||||
Diluted | $ | 1.21 | $ | (0.02 | ) | $ | 1.19 | ||||
Comprehensive income | $ | 81,741 | $ | (1,304 | ) | $ | 80,437 | ||||
Comprehensive income attributable to Apergy | $ | 81,287 | $ | (1,304 | ) | $ | 79,983 |
Year Ended December 31, 2017 | |||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | ||||||||
Product revenue | $ | 919,669 | $ | 3,023 | $ | 922,692 | |||||
Other revenue (1) | 90,797 | (3,023 | ) | 87,774 | |||||||
Total revenue | 1,010,466 | — | 1,010,466 | ||||||||
Cost of goods and services | 689,990 | 408 | 690,398 | ||||||||
Gross profit | 320,476 | (408 | ) | 320,068 | |||||||
Selling, general and administrative expense | 218,558 | 2,849 | 221,407 | ||||||||
Interest expense, net | 753 | 110 | 863 | ||||||||
Other expense, net | 10,377 | (934 | ) | 9,443 | |||||||
Income before income taxes | 90,788 | (2,433 | ) | 88,355 | |||||||
Benefit from income taxes | (21,876 | ) | (288 | ) | (22,164 | ) | |||||
Net income | 112,664 | (2,145 | ) | 110,519 | |||||||
Net income attributable to noncontrolling interest | 930 | — | 930 | ||||||||
Net income attributable to Apergy | $ | 111,734 | $ | (2,145 | ) | $ | 109,589 | ||||
Earnings per share attributable to Apergy: | |||||||||||
Basic | $ | 1.44 | $ | (0.02 | ) | $ | 1.42 | ||||
Diluted | $ | 1.43 | $ | (0.02 | ) | $ | 1.41 | ||||
Comprehensive income | $ | 119,905 | $ | (2,145 | ) | $ | 117,760 | ||||
Comprehensive income attributable to Apergy | $ | 118,975 | $ | (2,145 | ) | $ | 116,830 |
December 31, 2018 | |||||||||||
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Assets | |||||||||||
Receivables, net | $ | 249,948 | $ | 1,488 | $ | 251,436 | |||||
Inventories, net | 218,319 | 1,102 | 219,421 | ||||||||
Prepaid expenses and other current assets | 20,211 | (1,677 | ) | 18,534 | |||||||
Total current assets | 530,310 | 913 | 531,223 | ||||||||
Other non-current assets | 8,445 | 447 | 8,892 | ||||||||
Total assets | 1,971,756 | 1,360 | 1,973,116 | ||||||||
Liabilities and Equity | |||||||||||
Accounts payable | 131,058 | 9,067 | 140,125 | ||||||||
Current portion of finance lease liabilities (1) | — | 4,320 | 4,320 | ||||||||
Accrued expenses and other current liabilities (1) | 30,391 | (1,630 | ) | 28,761 | |||||||
Total current liabilities | 201,995 | 11,757 | 213,752 | ||||||||
Long-term debt | 666,108 | (2,901 | ) | 663,207 | |||||||
Deferred income taxes | 101,724 | (1,952 | ) | 99,772 | |||||||
Total liabilities | 990,229 | 6,904 | 997,133 | ||||||||
Stockholders’ equity: | |||||||||||
Capital in excess of par value of common stock | 965,372 | (4,599 | ) | 960,773 | |||||||
Retained earnings | 55,829 | (945 | ) | 54,884 | |||||||
Total stockholders’ equity | 979,069 | (5,544 | ) | 973,525 | |||||||
Total equity | 981,527 | (5,544 | ) | 975,983 | |||||||
Total liabilities and equity | $ | 1,971,756 | $ | 1,360 | $ | 1,973,116 |
(in thousands) | As Reported | Adjustments | As Revised | ||||||||
Total equity at December 31, 2016 | $ | 1,551,218 | $ | (2,714 | ) | $ | 1,548,504 | ||||
Net income | 112,664 | (2,145 | ) | 110,519 | |||||||
Net transfers to Dover | (29,526 | ) | (17 | ) | (29,543 | ) | |||||
Total equity at December 31, 2017 | 1,640,385 | (4,876 | ) | 1,635,509 | |||||||
Net income | 94,495 | (1,304 | ) | 93,191 | |||||||
Net transfers to/from Dover | (742,690 | ) | 636 | (742,054 | ) | ||||||
Total equity at December 31, 2018 | $ | 981,527 | $ | (5,544 | ) | $ | 975,983 |
Years Ended December 31, | |||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2017 | ||||||||
Net income attributable to Apergy | $ | 52,164 | $ | 92,737 | $ | 109,589 | |||||
Weighted-average number of shares outstanding | 77,427 | 77,342 | 77,340 | ||||||||
Dilutive effect of stock-based compensation | 197 | 350 | 550 | ||||||||
Total shares and dilutive securities | 77,624 | 77,692 | 77,890 | ||||||||
Basic earnings per share attributable to Apergy | $ | 0.67 | $ | 1.20 | $ | 1.42 | |||||
Diluted earnings per share attributable to Apergy | $ | 0.67 | $ | 1.19 | $ | 1.41 |
Years Ended December 31, | |||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2016 | ||||||||
Net income (loss) attributable to Apergy | $ | 94,041 | $ | 111,734 | $ | (12,751 | ) | ||||
Weighted-average number of shares outstanding | 77,342 | 77,340 | 77,340 | ||||||||
Dilutive effect of stock-based compensation | 350 | 550 | — | ||||||||
Total shares and dilutive securities | 77,692 | 77,890 | 77,340 | ||||||||
Basic earnings (loss) per share attributable to Apergy | $ | 1.22 | $ | 1.44 | $ | (0.16 | ) | ||||
Diluted earnings (loss) per share attributable to Apergy | $ | 1.21 | $ | 1.43 | $ | (0.16 | ) |
(in thousands) | |||
Cash | $ | 12,500 | |
Contingent consideration (1) | 1,500 | ||
Total consideration transferred | $ | 14,000 |
(in thousands) | |||
Inventory | $ | 1,840 | |
Customer relationships | 2,650 | ||
Technology - Technical know-how | 4,000 | ||
Goodwill | 5,510 | ||
Total assets acquired | $ | 14,000 |
(in thousands) | December 31, 2019 | December 31, 2018 | |||||
Raw materials | $ | 50,099 | $ | 53,677 | |||
Work in progress | 13,325 | 11,416 | |||||
Finished goods | 175,774 | 180,106 | |||||
239,198 | 245,199 | ||||||
LIFO and valuation adjustments | (27,856 | ) | (25,778 | ) | |||
Inventories, net | $ | 211,342 | $ | 219,421 |
(in thousands) | December 31, 2018 | December 31, 2017 | |||||
Raw materials | $ | 52,057 | $ | 45,408 | |||
Work in progress | 11,416 | 10,879 | |||||
Finished goods | 180,624 | 167,227 | |||||
244,097 | 223,514 | ||||||
LIFO and valuation adjustments | (25,778 | ) | (22,112 | ) | |||
Inventories, net | $ | 218,319 | $ | 201,402 |
(in thousands) | December 31, 2019 | December 31, 2018 | |||||
Land | $ | 13,498 | $ | 13,607 | |||
Buildings and improvements | 107,914 | 105,036 | |||||
Software | 15,323 | 14,553 | |||||
Machinery, equipment and other | 538,168 | 503,476 | |||||
674,903 | 636,672 | ||||||
Accumulated depreciation | (426,722 | ) | (392,344 | ) | |||
Property, plant and equipment, net | $ | 248,181 | $ | 244,328 |
(in thousands) | December 31, 2018 | December 31, 2017 | |||||
Land | $ | 13,607 | $ | 13,557 | |||
Buildings and improvements | 105,036 | 99,233 | |||||
Machinery, equipment and other | 518,029 | 447,991 | |||||
636,672 | 560,781 | ||||||
Accumulated depreciation | (392,344 | ) | (347,219 | ) | |||
Property, plant and equipment, net | $ | 244,328 | $ | 213,562 |
(in thousands) | Production & Automation Technologies | Drilling Technologies | Total | Production & Automation Technologies | Drilling Technologies | Total | ||||||||||||||||
December 31, 2016 | $ | 801,443 | $ | 101,136 | $ | 902,579 | ||||||||||||||||
Acquisitions | 5,053 | — | 5,053 | |||||||||||||||||||
Foreign currency translation | 2,456 | — | 2,456 | |||||||||||||||||||
December 31, 2017 | 808,952 | 101,136 | 910,088 | $ | 808,952 | $ | 101,136 | $ | 910,088 | |||||||||||||
Purchase price adjustment (1) | (53 | ) | — | (53 | ) | (53 | ) | — | (53 | ) | ||||||||||||
Foreign currency translation | (5,050 | ) | — | (5,050 | ) | (5,050 | ) | — | (5,050 | ) | ||||||||||||
December 31, 2018 | $ | 803,849 | $ | 101,136 | $ | 904,985 | 803,849 | 101,136 | 904,985 | |||||||||||||
Acquisitions | 5,510 | — | 5,510 | |||||||||||||||||||
Foreign currency translation | 618 | — | 618 | |||||||||||||||||||
December 31, 2019 | $ | 809,977 | $ | 101,136 | $ | 911,113 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||
Customer intangibles | $ | 560,316 | $ | 353,189 | $ | 207,127 | $ | 568,643 | $ | 319,827 | $ | 248,816 | |||||||||||
Trademarks | 35,695 | 24,830 | 10,865 | 36,296 | 21,575 | 14,721 | |||||||||||||||||
Patents | 38,436 | 26,838 | 11,598 | 38,141 | 23,568 | 14,573 | |||||||||||||||||
Unpatented technologies | 13,700 | 9,811 | 3,889 | 9,700 | 9,700 | — | |||||||||||||||||
Drawings and manuals | 2,558 | 1,758 | 800 | 3,000 | 2,142 | 858 | |||||||||||||||||
Other | 5,332 | 4,504 | 828 | 5,268 | 4,148 | 1,120 | |||||||||||||||||
656,037 | 420,930 | 235,107 | 661,048 | 380,960 | 280,088 | ||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||
Trademarks | 3,600 | — | 3,600 | 3,600 | — | 3,600 | |||||||||||||||||
Total | $ | 659,637 | $ | 420,930 | $ | 238,707 | $ | 664,648 | $ | 380,960 | $ | 283,688 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||
Customer intangibles | $ | 568,643 | $ | 319,827 | $ | 248,816 | $ | 572,415 | $ | 276,655 | $ | 295,760 | |||||||||||
Trademarks | 36,296 | 21,575 | 14,721 | 36,312 | 17,821 | 18,491 | |||||||||||||||||
Patents | 38,141 | 23,568 | 14,573 | 38,679 | 20,449 | 18,230 | |||||||||||||||||
Unpatented technologies | 9,700 | 9,700 | — | 9,700 | 9,700 | — | |||||||||||||||||
Drawings and manuals | 3,000 | 2,142 | 858 | 3,067 | 2,109 | 958 | |||||||||||||||||
Other | 5,268 | 4,148 | 1,120 | 5,382 | 3,911 | 1,471 | |||||||||||||||||
661,048 | 380,960 | 280,088 | 665,555 | 330,645 | 334,910 | ||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||
Trademarks | 3,600 | — | 3,600 | 3,600 | — | 3,600 | |||||||||||||||||
Total | $ | 664,648 | $ | 380,960 | $ | 283,688 | $ | 669,155 | $ | 330,645 | $ | 338,510 |
(in thousands) | Estimated Amortization | ||
2020 | $ | 50,147 | |
2021 | 49,319 | ||
2022 | 47,820 | ||
2023 | 33,928 | ||
2024 | 23,271 |
(in thousands) | Estimated Amortization | ||
2019 | $ | 51,073 | |
2020 | 49,623 | ||
2021 | 48,795 | ||
2022 | 47,323 | ||
2023 | 33,452 |
Years Ended December 31, | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Balance at beginning of year | $ | 3,070 | $ | 4,666 | $ | 4,421 | |||||
Expenses for warranties | 3,015 | 309 | 2,109 | ||||||||
Claims paid | (3,320 | ) | (1,896 | ) | (1,518 | ) | |||||
Other adjustments, including foreign currency translation | (80 | ) | (9 | ) | (346 | ) | |||||
Balance at end of year | $ | 2,685 | $ | 3,070 | $ | 4,666 |
(in thousands) | December 31, 2019 | December 31, 2018 | |||||
Revolving credit facility | $ | — | $ | — | |||
Term loan facility | 265,000 | 370,000 | |||||
6.375% Senior Notes due 2026 | 300,000 | 300,000 | |||||
Finance lease obligations | 4,530 | 4,584 | |||||
Total | 569,530 | 674,584 | |||||
Net unamortized discounts and issuance costs | (9,709 | ) | (11,377 | ) | |||
Total long-term debt | $ | 559,821 | $ | 663,207 |
(in thousands) | December 31, 2018 | December 31, 2017 | |||||
Revolving credit facility | $ | — | $ | — | |||
Term loan facility | 370,000 | — | |||||
6.375% Senior Notes due 2026 | 300,000 | — | |||||
Capital lease obligations | 7,485 | 5,806 | |||||
Total | 677,485 | 5,806 | |||||
Net unamortized discounts and issuance costs | (11,377 | ) | — | ||||
Total long-term debt | $ | 666,108 | $ | 5,806 |
(in thousands) | Principal Payments(1) | Principal Payments(1) | ||||
2019 | $ | — | ||||
2020 | — | $ | — | |||
2021 | — | — | ||||
2022 | — | — | ||||
2023 | — | — | ||||
2024 | — | |||||
Thereafter | 670,000 | 565,000 | ||||
Total | $ | 670,000 | $ | 565,000 |
(in thousands) | Operating | Capital | |||||
2019 | $ | 14,781 | $ | 4,447 | |||
2020 | 12,768 | 2,636 | |||||
2021 | 11,240 | 987 | |||||
2022 | 10,951 | 97 | |||||
2023 | 10,268 | 22 | |||||
Thereafter | 8,734 | 25 | |||||
Total | $ | 68,742 | $ | 8,214 |
(in thousands) | Common Stock | |
December 31, 2017 | — | |
Issuance of common stock at the Separation | 77,340 | |
Shares issued—share-based compensation | 13 | |
December 31, 2018 | 77,353 | |
Shares issued—share-based compensation | 107 | |
December 31, 2019 | 77,460 |
(in thousands) | Foreign Currency Translation | Defined Pension and Other Post-Retirement Benefits | Accumulated Other Comprehensive Loss | ||||||||
December 31, 2017 | $ | (21,936 | ) | $ | (4,480 | ) | $ | (26,416 | ) | ||
Reclassification adjustment for cumulative effect of change in accounting principle | — | (1,315 | ) | (1,315 | ) | ||||||
Net transfer from Dover | — | (2,421 | ) | (2,421 | ) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | (14,210 | ) | 856 | (13,354 | ) | ||||||
Reclassification adjustment for net losses included in net income, net of tax | — | 600 | 600 | ||||||||
Other comprehensive income (loss), net of tax | (14,210 | ) | 1,456 | (12,754 | ) | ||||||
December 31, 2018 | (36,146 | ) | (6,760 | ) | (42,906 | ) | |||||
Other comprehensive income (loss) before reclassifications, net of tax | 936 | (2,711 | ) | (1,775 | ) | ||||||
Reclassification adjustment for net losses included in net income, net of tax | — | 644 | 644 | ||||||||
Other comprehensive income (loss), net of tax | 936 | (2,067 | ) | (1,131 | ) | ||||||
December 31, 2019 | $ | (35,210 | ) | $ | (8,827 | ) | $ | (44,037 | ) |
(in thousands) | Foreign Currency Translation | Defined Pension and Other Post-Retirement Benefits | Accumulated Other Comprehensive Loss | ||||||||
December 31, 2016 | $ | (26,321 | ) | $ | (7,336 | ) | $ | (33,657 | ) | ||
Other comprehensive income before reclassifications, net of tax | 4,385 | 2,598 | 6,983 | ||||||||
Reclassification adjustment for net losses included in net income, net of tax | — | 258 | 258 | ||||||||
Other comprehensive income, net of tax | 4,385 | 2,856 | 7,241 | ||||||||
December 31, 2017 | (21,936 | ) | (4,480 | ) | (26,416 | ) | |||||
Reclassification adjustment for cumulative effect of change in accounting principle | — | (1,315 | ) | (1,315 | ) | ||||||
Net transfer from Dover | — | (2,421 | ) | (2,421 | ) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | (14,210 | ) | 856 | (13,354 | ) | ||||||
Reclassification adjustment for net losses included in net income, net of tax | — | 600 | 600 | ||||||||
Other comprehensive income (loss), net of tax | (14,210 | ) | 1,456 | (12,754 | ) | ||||||
December 31, 2018 | $ | (36,146 | ) | $ | (6,760 | ) | $ | (42,906 | ) |
Years Ended December 31, | Affected line items on the consolidated statements of income (loss) | Years Ended December 31, | Affected line items on the consolidated statements of income | |||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | ||||||||||||||||||||
Amortization of actuarial loss and net transition obligation(1) | $ | 330 | $ | 397 | $ | 362 | Other expense, net | $ | 364 | $ | 330 | $ | 397 | Other expense, net | ||||||||||||
Amortization of prior service cost (1) | 1 | 2 | 2 | Other expense, net | 2 | 1 | 2 | Other expense, net | ||||||||||||||||||
Settlement loss (1) | 479 | — | — | Other expense, net | 508 | 479 | — | Other expense, net | ||||||||||||||||||
810 | 399 | 364 | Income (loss) before income taxes | 874 | 810 | 399 | Income before income taxes | |||||||||||||||||||
(210 | ) | (141 | ) | (129 | ) | Provision for (benefit from) income taxes | (230 | ) | (210 | ) | (141 | ) | Provision for (benefit from) income taxes | |||||||||||||
$ | 600 | $ | 258 | $ | 235 | Net income (loss) | $ | 644 | $ | 600 | $ | 258 | Net income |
(1) | These accumulated comprehensive loss components are included in the computation of net periodic benefit cost (See |
Years Ended December 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 (1) | ||||||||
Product revenue | $ | 1,000,630 | $ | 1,090,218 | $ | 922,692 | |||||
Service revenue | 82,021 | 83,334 | 63,386 | ||||||||
Lease and other revenue | 48,600 | 44,604 | 24,388 | ||||||||
Total revenue | $ | 1,131,251 | $ | 1,218,156 | $ | 1,010,466 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017(1) | 2016(1) | 2019 | 2018 | 2017 (1) | ||||||||||||||||
Drilling Technologies | $ | 285,565 | $ | 227,653 | $ | 113,320 | $ | 246,887 | $ | 285,565 | $ | 227,653 | ||||||||||
Production & Automation Technologies: | ||||||||||||||||||||||
Artificial lift | 724,554 | 602,287 | 499,033 | 687,607 | 725,584 | 602,287 | ||||||||||||||||
Digital products | 117,801 | 82,093 | 65,351 | 134,660 | 119,293 | 82,093 | ||||||||||||||||
Other production equipment | 91,232 | 103,564 | 75,182 | 63,117 | 88,754 | 103,564 | ||||||||||||||||
Intra-segment eliminations | (2,506 | ) | (5,131 | ) | (1,549 | ) | (1,020 | ) | (1,040 | ) | (5,131 | ) | ||||||||||
931,081 | 782,813 | 638,017 | 884,364 | 932,591 | 782,813 | |||||||||||||||||
Total revenue | $ | 1,216,646 | $ | 1,010,466 | $ | 751,337 | $ | 1,131,251 | $ | 1,218,156 | $ | 1,010,466 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017(1) | 2016(1) | 2019 | 2018 | 2017 (1) | ||||||||||||||||
United States | $ | 957,657 | $ | 770,822 | $ | 559,266 | $ | 861,001 | $ | 959,167 | $ | 770,843 | ||||||||||
Canada | 79,816 | 79,186 | 54,714 | 70,314 | 79,816 | 79,186 | ||||||||||||||||
Middle East | 53,516 | 48,899 | 54,767 | 60,064 | 53,516 | 48,899 | ||||||||||||||||
Europe | 38,669 | 28,112 | 19,935 | 51,965 | 38,669 | 28,112 | ||||||||||||||||
Latin America | 33,976 | 34,350 | 23,580 | 32,408 | 33,976 | 34,350 | ||||||||||||||||
Asia-Pacific | 17,605 | 20,072 | 17,570 | |||||||||||||||||||
Other | 35,407 | 29,025 | 21,505 | |||||||||||||||||||
Australia | 30,841 | 33,247 | 23,667 | |||||||||||||||||||
Asia-Pacific and other | 24,658 | 19,765 | 25,409 | |||||||||||||||||||
Total revenue | $ | 1,216,646 | $ | 1,010,466 | $ | 751,337 | $ | 1,131,251 | $ | 1,218,156 | $ | 1,010,466 |
(in thousands) | December 31, 2019 | December 31, 2018 | January 1, 2018 | |||||||||
Contract assets | $ | 285 | $ | 4,571 | $ | 4,733 | ||||||
Contract liabilities | $ | 6,148 | $ | 5,863 | $ | 3,912 |
(in thousands) | December 31, 2018 | January 1, 2018 | ||||||
Contract assets | $ | 4,571 | $ | 4,733 | ||||
Contract liabilities - current | 5,863 | 3,912 |
(in thousands) | Balance Sheet Classification | December 31, 2019 | ||||
Right-of Use Assets: | ||||||
Finance leases | Property, plant, and equipment, net | $ | 9,406 | |||
Operating leases | Other non-current assets | 24,289 | ||||
Total lease right-of-use assets | 33,695 | |||||
Lease Liabilities: | ||||||
Finance leases - current | Current portion of finance lease liabilities | 4,845 | ||||
Finance leases | Long-term debt | 4,530 | ||||
Operating leases - current | Accrued expenses and other current liabilities | 7,620 | ||||
Operating leases | Other long-term liabilities | 19,419 | ||||
Total lease liabilities | $ | 36,414 |
(in thousands) | Year ended December 31, 2019 | ||
Finance lease cost: | |||
Amortization of right-of-use assets | $ | 5,200 | |
Interest on lease liabilities | 439 | ||
Operating lease cost (1) | 11,191 | ||
Short-term lease cost | 3,996 | ||
Variable lease cost | 1,049 | ||
Sublease income | (463 | ) | |
Total net lease cost | $ | 21,412 |
December 31, 2019 | ||
Weighted-average remaining lease term (years): | ||
Operating lease | 4.6 | |
Finance lease | 2.1 | |
Weighted-average discount rate: | ||
Operating lease | 6.7 | % |
Finance lease | 5.3 | % |
(in thousands) | Operating | Finance | |||||
2020 | $ | 9,096 | $ | 5,219 | |||
2021 | 5,939 | 3,488 | |||||
2022 | 5,147 | 1,054 | |||||
2023 | 4,456 | 155 | |||||
2024 | 2,906 | 34 | |||||
Thereafter | 4,889 | — | |||||
Total future minimum lease payments | 32,433 | 9,950 | |||||
Interest included within lease payments | (5,394 | ) | (575 | ) | |||
Total lease liabilities | $ | 27,039 | $ | 9,375 |
(in thousands) | Useful life | December 31, 2019 | |||
Cable equipment | 1 year | $ | 52,144 | ||
Downhole equipment | 1 year | 32,193 | |||
Surface equipment | 5 years | 69,566 | |||
Other lease equipment | 3 - 5 years | 16,090 | |||
169,993 | |||||
Accumulated depreciation | (71,968 | ) | |||
Leased assets, net | $ | 98,025 |
Years Ended December 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Production & Automation Technologies | $ | 4,467 | $ | 5,632 | $ | 6,921 | |||||
Drilling Technologies | 710 | — | — | ||||||||
Total | $ | 5,177 | $ | 5,632 | $ | 6,921 | |||||
Cost of goods and services | $ | 3,592 | $ | 4,693 | $ | 6,332 | |||||
Selling, general and administrative expense | 1,585 | 939 | 589 | ||||||||
Total | $ | 5,177 | $ | 5,632 | $ | 6,921 |
Years Ended December 31, | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Production & Automation Technologies | $ | 5,632 | $ | 6,921 | $ | 12,757 | |||||
Drilling Technologies | — | — | 2,405 | ||||||||
Total | $ | 5,632 | $ | 6,921 | $ | 15,162 | |||||
Cost of goods and services | $ | 4,693 | $ | 6,332 | $ | 9,465 | |||||
Selling, general and administrative expense | 939 | 589 | 5,697 | ||||||||
Total | $ | 5,632 | $ | 6,921 | $ | 15,162 |
Years Ended December 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Domestic | $ | 51,073 | $ | 104,234 | $ | 65,923 | |||||
Foreign | 8,113 | 17,119 | 22,432 | ||||||||
Income before income tax | $ | 59,186 | $ | 121,353 | $ | 88,355 |
Years Ended December 31, | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Domestic | $ | 106,172 | $ | 68,356 | $ | (26,035 | ) | ||||
Foreign | 17,119 | 22,432 | 7,092 | ||||||||
Income (loss) before income tax | $ | 123,291 | $ | 90,788 | $ | (18,943 | ) |
Years Ended December 31, | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Current: | |||||||||||
U.S. federal | $ | 21,386 | $ | 42,693 | $ | 8,872 | |||||
State and local | 1,559 | 4,257 | 1,995 | ||||||||
Foreign | 7,139 | 6,176 | 971 | ||||||||
Total current | 30,084 | 53,126 | 11,838 | ||||||||
Deferred: | |||||||||||
U.S. federal | (2,255 | ) | (73,544 | ) | (19,161 | ) | |||||
State and local | 3,466 | (1,361 | ) | (771 | ) | ||||||
Foreign | (2,499 | ) | (97 | ) | 51 | ||||||
Total deferred | (1,288 | ) | (75,002 | ) | (19,881 | ) | |||||
Provision for (benefit from) income taxes | $ | 28,796 | $ | (21,876 | ) | $ | (8,043 | ) |
Years Ended December 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Current: | |||||||||||
U.S. federal | $ | 15,327 | $ | 24,221 | $ | 42,690 | |||||
State and local | 1,196 | 1,598 | 4,255 | ||||||||
Foreign | 4,264 | 4,362 | 6,127 | ||||||||
Total current | 20,787 | 30,181 | 53,072 | ||||||||
Deferred: | |||||||||||
U.S. federal | (12,815 | ) | (2,255 | ) | (73,544 | ) | |||||
State and local | (1,156 | ) | 2,735 | (1,595 | ) | ||||||
Foreign | (590 | ) | (2,499 | ) | (97 | ) | |||||
Total deferred | (14,561 | ) | (2,019 | ) | (75,236 | ) | |||||
Provision for (benefit from) income taxes | $ | 6,226 | $ | 28,162 | $ | (22,164 | ) |
Years Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
Net difference resulting from: | ||||||||
State and local taxes, net of federal income tax benefit | 3.2 | 3.4 | 2.1 | |||||
Foreign withholding tax | 1.8 | 0.3 | — | |||||
Foreign derived intangible income | (0.8 | ) | (1.9 | ) | — | |||
Foreign operations tax effect | — | 0.3 | (2.8 | ) | ||||
Research and experimentation tax credits | (1.2 | ) | (0.6 | ) | (0.7 | ) | ||
Foreign tax credit | (8.0 | ) | (1.5 | ) | — | |||
Domestic manufacturing deduction | — | — | (4.4 | ) | ||||
Nondeductible expenses | 2.5 | 0.7 | 0.7 | |||||
ESOP dividends | — | (0.1 | ) | (0.2 | ) | |||
Branch income | 0.6 | — | 1.1 | |||||
Tax return to accrual adjustments | (9.4 | ) | — | — | ||||
State deferred taxes | (7.9 | ) | — | — | ||||
Changes due to the Tax Reform Act | — | — | (54.3 | ) | ||||
Global intangible low-taxed income | — | 2.3 | — | |||||
Change in valuation allowance | 9.0 | — | — | |||||
Other | (0.3 | ) | (0.7 | ) | (1.6 | ) | ||
Effective income tax rate | 10.5 | % | 23.2 | % | (25.1 | )% |
Years Ended December 31, | ||||||||
2018 | 2017 | 2016 | ||||||
Statutory U.S. federal income tax rate | 21.0 | % | 35.0 | % | 35.0 | % | ||
Net difference resulting from: | ||||||||
State and local taxes, net of federal income tax benefit | 3.3 | 2.1 | (3.9 | ) | ||||
Foreign derived intangible income | (1.9 | ) | — | — | ||||
Foreign operations tax effect | 0.8 | (2.8 | ) | 7.8 | ||||
Research and experimentation tax credits | (0.6 | ) | (0.7 | ) | 2.3 | |||
Domestic manufacturing deduction | — | (4.4 | ) | 6.2 | ||||
Nondeductible expenses | 0.7 | 0.7 | (3.3 | ) | ||||
ESOP dividends | (0.1 | ) | (0.2 | ) | 2.9 | |||
Branch income | — | 1.1 | (2.9 | ) | ||||
Changes due to the Tax Reform Act | — | (54.3 | ) | — | ||||
Other | 0.2 | (0.6 | ) | (1.6 | ) | |||
Effective income tax rate | 23.4 | % | (24.1 | )% | 42.5 | % |
(in thousands) | December 31, 2019 | December 31, 2018 | |||||
Deferred tax assets attributable to: | |||||||
Accrued compensation | $ | 8,725 | $ | 8,146 | |||
Accrued expenses, principally for state income taxes, interest and warranty | 455 | 2,807 | |||||
Net operating loss and other carryforwards | 5,937 | 766 | |||||
Inventories | 1,380 | — | |||||
Accounts receivable, principally due to allowance for doubtful accounts | 1,699 | 973 | |||||
Long-term liabilities, principally warranty and exit cost | 6,178 | 505 | |||||
Other assets | 1,202 | 64 | |||||
Deferred tax assets | 25,576 | 13,261 | |||||
Valuation allowance | (6,027 | ) | (722 | ) | |||
Deferred tax assets, net of valuation allowance | $ | 19,549 | $ | 12,539 | |||
Deferred tax liabilities attributable to: | |||||||
Inventories | $ | — | $ | (2,061 | ) | ||
Intangible assets, including goodwill | (66,736 | ) | (83,436 | ) | |||
Property, plant and equipment | (36,873 | ) | (25,520 | ) | |||
Deferred tax liabilities | (103,609 | ) | (111,017 | ) | |||
Net deferred tax liabilities | $ | (84,060 | ) | $ | (98,478 | ) | |
Other non-current assets | $ | — | $ | 1,294 | |||
Deferred income taxes | (84,060 | ) | (99,772 | ) | |||
$ | (84,060 | ) | $ | (98,478 | ) |
(in thousands) | December 31, 2018 | December 31, 2017 | |||||
Deferred tax assets attributable to: | |||||||
Accrued compensation | $ | 7,535 | $ | 4,568 | |||
Accrued expenses, principally for state income taxes, interest and warranty | 1,156 | 846 | |||||
Net operating loss and other carryforwards | 766 | 1,280 | |||||
Accounts receivable, principally due to allowance for doubtful accounts | 973 | 827 | |||||
Long-term liabilities, principally warranty and exit cost | 505 | 678 | |||||
Other assets | 374 | 132 | |||||
Deferred tax assets | 11,309 | 8,331 | |||||
Valuation allowance | (722 | ) | (1,280 | ) | |||
Deferred tax assets, net of valuation allowance | $ | 10,587 | $ | 7,051 | |||
Deferred tax liabilities attributable to: | |||||||
Inventories | $ | (2,061 | ) | $ | (3,687 | ) | |
Intangible assets, including goodwill | (83,436 | ) | (83,669 | ) | |||
Property, plant and equipment | (25,520 | ) | (16,134 | ) | |||
Deferred tax liabilities | (111,017 | ) | (103,490 | ) | |||
Net deferred tax liabilities | $ | (100,430 | ) | $ | (96,439 | ) | |
Other non-current assets | $ | 1,294 | $ | 546 | |||
Deferred income taxes | (101,724 | ) | (96,985 | ) | |||
$ | (100,430 | ) | $ | (96,439 | ) |
Pensions | Other post-retirement benefits | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Projected benefit obligation at January 1 | $ | 15,948 | $ | 3,881 | $ | 13,061 | $ | 14,197 | |||||||
Service cost | 760 | 598 | — | — | |||||||||||
Interest cost | 588 | 455 | 503 | 448 | |||||||||||
Benefits paid | (328 | ) | (370 | ) | (1,751 | ) | (1,022 | ) | |||||||
Actuarial (gain)/loss (1) | 2,784 | (530 | ) | 1,398 | (562 | ) | |||||||||
Liabilities assumed from the Separation | — | 14,348 | — | — | |||||||||||
Amendments | 250 | — | — | — | |||||||||||
Settlements and curtailments | (2,156 | ) | (1,763 | ) | — | — | |||||||||
Foreign currency translation and other | 503 | (671 | ) | — | — | ||||||||||
Projected benefit obligation at December 31 | 18,349 | 15,948 | 13,211 | 13,061 | |||||||||||
Fair value of plan assets at January 1 | 15,130 | 3,993 | — | — | |||||||||||
Actual return on plan assets | 1,888 | (76 | ) | — | — | ||||||||||
Company contributions | 1,486 | 4,740 | 1,751 | 1,022 | |||||||||||
Benefits paid | (328 | ) | (370 | ) | (1,751 | ) | (1,022 | ) | |||||||
Assets assumed from the Separation | — | 9,227 | — | — | |||||||||||
Settlements and curtailments | (2,156 | ) | (1,763 | ) | — | — | |||||||||
Foreign currency translation and other | 467 | (621 | ) | — | — | ||||||||||
Fair value of plan assets at December 31 | 16,487 | 15,130 | — | — | |||||||||||
Funded (unfunded) status at December 31 | $ | (1,862 | ) | $ | (818 | ) | $ | (13,211 | ) | $ | (13,061 | ) | |||
Other non-current assets | $ | 18 | $ | 146 | $ | — | $ | — | |||||||
Accrued compensation and employee benefits | — | — | (1,592 | ) | (1,598 | ) | |||||||||
Other long-term liabilities | (1,880 | ) | (964 | ) | (11,619 | ) | (11,463 | ) | |||||||
Funded (unfunded) status | $ | (1,862 | ) | $ | (818 | ) | $ | (13,211 | ) | $ | (13,061 | ) | |||
Accumulated benefit obligations | $ | 16,235 | $ | 14,076 | $ | 13,211 | $ | 13,061 |
Pensions | Other post-retirement benefits | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Projected benefit obligation at January 1 | $ | 3,881 | $ | 3,512 | $ | 14,197 | $ | 18,600 | |||||||
Service cost | 598 | 106 | — | — | |||||||||||
Interest cost | 455 | 137 | 448 | 621 | |||||||||||
Benefits paid | (370 | ) | (99 | ) | (1,022 | ) | (1,710 | ) | |||||||
Actuarial gain | (530 | ) | (22 | ) | (562 | ) | (3,314 | ) | |||||||
Liabilities assumed from the Separation | 14,348 | — | — | — | |||||||||||
Settlements and curtailments | (1,763 | ) | — | — | — | ||||||||||
Foreign currency translation and other | (671 | ) | 247 | — | — | ||||||||||
Projected benefit obligation at December 31 | 15,948 | 3,881 | 13,061 | 14,197 | |||||||||||
Fair value of plan assets at January 1 | 3,993 | 3,391 | — | — | |||||||||||
Actual return on plan assets | (76 | ) | 290 | — | — | ||||||||||
Company contributions | 4,740 | 166 | 1,022 | 1,710 | |||||||||||
Benefits paid | (370 | ) | (99 | ) | (1,022 | ) | (1,710 | ) | |||||||
Assets assumed from the Separation | 9,227 | — | — | — | |||||||||||
Settlements and curtailments | (1,763 | ) | — | — | — | ||||||||||
Foreign currency translation and other | (621 | ) | 245 | — | — | ||||||||||
Fair value of plan assets at December 31 | 15,130 | 3,993 | — | — | |||||||||||
Funded (unfunded) status at December 31 | $ | (818 | ) | $ | 112 | $ | (13,061 | ) | $ | (14,197 | ) | ||||
Other non-current assets | $ | 146 | $ | 112 | $ | — | $ | — | |||||||
Accrued compensation and employee benefits | — | — | (1,598 | ) | (1,547 | ) | |||||||||
Other long-term liabilities | (964 | ) | — | (11,463 | ) | (12,650 | ) | ||||||||
Funded (unfunded) status | $ | (818 | ) | $ | 112 | $ | (13,061 | ) | $ | (14,197 | ) | ||||
Accumulated benefit obligations | $ | 14,076 | $ | 3,881 | $ | 13,061 | $ | 14,197 |
Pensions | Other post-retirement benefits | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Pre-tax amounts recognized in accumulated other comprehensive loss (income): | |||||||||||||||
Unrecognized net actuarial loss | $ | 4,699 | $ | 3,586 | $ | 6,883 | $ | 5,685 | |||||||
Unrecognized prior service cost | 274 | 25 | — | — | |||||||||||
Unrecognized net transition asset | (10 | ) | (8 | ) | — | — | |||||||||
Accumulated other comprehensive loss | $ | 4,963 | $ | 3,603 | $ | 6,883 | $ | 5,685 |
Pensions | Other post-retirement benefits | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Pre-tax amounts recognized in accumulated other comprehensive loss (income): | |||||||||||||||
Unrecognized net actuarial loss | $ | 3,586 | $ | 1,449 | $ | 5,685 | $ | 6,078 | |||||||
Unrecognized prior service cost | 25 | 40 | — | — | |||||||||||
Unrecognized net transition asset | (8 | ) | (20 | ) | — | — | |||||||||
Accumulated other comprehensive loss | $ | 3,603 | $ | 1,469 | $ | 5,685 | $ | 6,078 |
Pensions | Other post-retirement benefits | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Aggregate accumulated benefit obligation | $ | 4,108 | $ | 3,722 | $ | 13,211 | $ | 13,061 | |||||||
Aggregate fair value of plan assets | 3,449 | 3,672 | — | — |
(in thousands) | 2018 | 2017 | |||||
Aggregate accumulated benefit obligation | $ | 16,783 | $ | — | |||
Aggregate fair value of plan assets | 3,672 | — |
Pensions | Other post-retirement benefits | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Aggregate projected benefit obligation | $ | 13,834 | $ | 12,334 | $ | 13,211 | $ | 13,061 | |||||||
Aggregate fair value of plan assets | 11,954 | 11,370 | — | — |
Pensions | Other post-retirement benefits | ||||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Service cost | $ | 760 | $ | 598 | $ | 106 | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 588 | 455 | 137 | 503 | 448 | 621 | |||||||||||||||||
Expected return on plan assets | (733 | ) | (593 | ) | (198 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost | 2 | 1 | 2 | — | — | — | |||||||||||||||||
Amortization of actuarial loss | 162 | 127 | 68 | 200 | 202 | 330 | |||||||||||||||||
Amortization of transition obligation | 2 | 1 | (1 | ) | — | — | — | ||||||||||||||||
Settlement loss | 508 | 479 | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | — | (1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 1,289 | $ | 1,068 | $ | 114 | $ | 703 | $ | 650 | $ | 950 |
Pensions | Other post-retirement benefits | ||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||
Service cost | $ | 598 | $ | 106 | $ | 102 | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 455 | 137 | 129 | 448 | 621 | 719 | |||||||||||||||||
Expected return on plan assets | (593 | ) | (198 | ) | (186 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost | 1 | 2 | 2 | — | — | — | |||||||||||||||||
Amortization of actuarial loss | 127 | 68 | 58 | 202 | 330 | 305 | |||||||||||||||||
Amortization of transition obligation | 1 | (1 | ) | (1 | ) | — | — | — | |||||||||||||||
Settlement loss | 479 | — | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | (1 | ) | — | ||||||||||||||||
Net periodic benefit cost | $ | 1,068 | $ | 114 | $ | 104 | $ | 650 | $ | 950 | $ | 1,024 |
(in thousands) | Pensions | Other post-retirement benefits | |||||
Net actuarial loss | $ | 158 | $ | 200 | |||
Prior service cost | 1 | — | |||||
Transition obligation | 3 | — |
Pensions | Other post-retirement benefits | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Discount rate | 3.11 | % | 3.90 | % | 3.00 | % | 4.10 | % |
Pensions | Other post-retirement benefits | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Discount rate | 3.90 | % | 3.50 | % | 4.10 | % | 3.35 | % |
Pensions | Other post-retirement benefits | ||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||
Discount rate | 3.85 | % | 3.68 | % | 3.75 | % | 4.10 | % | 3.35 | % | 3.55 | % | |||||
Expected return on plan assets | 4.89 | % | 4.80 | % | 5.50 | % |
Pensions | Other post-retirement benefits | |||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | ||||||||||
Discount rate | 3.68 | % | 3.75 | % | 4.00 | % | 3.35 | % | 3.55 | % | ||||
Expected return on plan assets | 4.80 | % | 5.50 | % | 5.75 | % |
Pensions | |||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Mutual funds | $ | 5,170 | $ | 7,868 | $ | — | $ | 13,038 | $ | 4,775 | $ | 6,683 | $ | — | $ | 11,458 | |||||||||||||||
Cash and cash equivalents | 3,449 | — | — | 3,449 | 3,672 | — | — | 3,672 | |||||||||||||||||||||||
Total | $ | 8,619 | $ | 7,868 | $ | — | $ | 16,487 | $ | 8,447 | $ | 6,683 | $ | — | $ | 15,130 |
Pensions | |||||||||||||||||||||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Mutual funds | $ | 4,775 | $ | 6,683 | $ | — | $ | 11,458 | $ | 2,399 | $ | 1,594 | $ | — | $ | 3,993 | |||||||||||||||
Cash and cash equivalents | 3,672 | — | — | 3,672 | — | — | — | — | |||||||||||||||||||||||
Total | $ | 8,447 | $ | 6,683 | $ | — | $ | 15,130 | $ | 2,399 | $ | 1,594 | $ | — | $ | 3,993 |
(in thousands) | Pensions | Other Post-retirement benefits | |||||
2020 | $ | 1,139 | $ | 1,592 | |||
2021 | 857 | 1,424 | |||||
2022 | 941 | 1,295 | |||||
2023 | 785 | 1,167 | |||||
2024 | 782 | 1,040 | |||||
2025-2029 | 5,427 | 3,557 |
(in thousands) | Pensions | Other Post-retirement benefits | |||||
2019 | $ | 507 | $ | 1,598 | |||
2020 | 555 | 1,488 | |||||
2021 | 757 | 1,333 | |||||
2022 | 1,050 | 1,222 | |||||
2023 | 586 | 1,123 | |||||
2024-2028 | 3,889 | 3,997 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Stock-based compensation expense | $ | 10,250 | $ | 5,375 | $ | 2,236 | |||||
Tax benefit | (2,153 | ) | (1,141 | ) | (774 | ) | |||||
Stock-based compensation expense, net of tax | $ | 8,097 | $ | 4,234 | $ | 1,462 |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Stock-based compensation expense | $ | 5,375 | $ | 2,236 | $ | 2,293 | |||||
Tax benefit | (1,141 | ) | (774 | ) | (787 | ) | |||||
Stock-based compensation expense, net of tax | $ | 4,234 | $ | 1,462 | $ | 1,506 |
2017 | |||
Risk-free interest rate | 1.80 | % | |
Dividend yield | 2.27 | % | |
Expected life (years) | 4.6 | ||
Volatility | 21.90 | % | |
Grant price | $ | 79.28 | |
Fair value at date of grant | $ | 12.63 |
2017 | 2016 | ||||||
Risk-free interest rate | 1.80 | % | 1.05 | % | |||
Dividend yield | 2.27 | % | 3.09 | % | |||
Expected life (years) | 4.6 | 4.6 | |||||
Volatility | 21.90 | % | 26.17 | % | |||
Grant price | $ | 79.28 | $ | 57.25 | |||
Fair value at date of grant | $ | 12.63 | $ | 9.25 |
SARs | ||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding at January 1, 2019 | 477,950 | $ | 29.43 | |||||||||
Forfeited / expired | (7,030 | ) | 34.13 | |||||||||
Exercised | (48,559 | ) | 25.95 | |||||||||
Outstanding at December 31, 2019 | 422,361 | 29.75 | 6.1 | $ | 1,799 | |||||||
Exercisable at December 31, 2019 | 253,901 | $ | 26.84 | 5.4 | $ | 1,799 |
SARs | ||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding at January 1, 2018 | — | $ | — | |||||||||
Converted | 488,039 | 29.43 | ||||||||||
Granted | — | — | ||||||||||
Forfeited / expired | (6,287 | ) | 28.62 | |||||||||
Exercised | (3,802 | ) | 31.55 | |||||||||
Outstanding at December 31, 2018 | 477,950 | 29.43 | 7.1 | $ | 529 | |||||||
Exercisable at December 31, 2018 | 95,142 | $ | 31.15 | 5.2 | $ | 24 |
(in thousands) | 2019 | 2018 | 2017 | ||||||||
SARs: | |||||||||||
Fair value of SARs that became exercisable | $ | 662 | $ | 310 | $ | 1,239 | |||||
Aggregate intrinsic value of SARs exercised | 629 | 40 | 2,787 |
(in thousands) | 2018 | 2017 | 2016 | ||||||||
SARs: | |||||||||||
Fair value of SARs that became exercisable | $ | 310 | $ | 1,239 | $ | 1,564 | |||||
Aggregate intrinsic value of SARs exercised | 40 | 2,787 | 799 |
Performance shares: | 2017 | ||
Fair value per share at date of grant | $ | 79.28 | |
Average attainment rate reflected in expense | 0.0 | % |
Performance shares: | 2017 | 2016 | |||||
Fair value per share at date of grant | $ | 79.28 | $ | 57.25 | |||
Average attainment rate reflected in expense | 0.0 | % | 0.0 | % |
Performance shares: | 2019 | 2018 | |||||
Fair value per share at date of grant | $ | 57.43 | $ | 56.32 |
Performance shares: | 2018 | ||
Fair value per share at date of grant | $ | 56.32 |
Performance shares: | 2019 | ||
Fair value per share at date of grant | $ | 40.22 | |
Average attainment rate reflected in expense | 100.0 | % |
Shares | Weighted-Average Grant-Date Fair Value | |||||
Unvested at January 1, 2019 | 86,817 | $ | 56.32 | |||
Granted | 92,919 | 48.83 | ||||
Forfeited | (5,010 | ) | 52.60 | |||
Vested | — | — | ||||
Unvested at December 31, 2019 | 174,726 | $ | 52.44 |
Shares | Weighted-Average Grant-Date Fair Value | |||||
Unvested at January 1, 2018 | — | $ | — | |||
Granted | 86,817 | 56.32 | ||||
Vested | — | — | ||||
Unvested at December 31, 2018 | 86,817 | $ | 56.32 |
Shares | Weighted-Average Grant-Date Fair Value | |||||
Unvested at January 1, 2019 | 414,840 | $ | 41.91 | |||
Granted | 183,143 | 37.82 | ||||
Forfeited | (16,498 | ) | 40.74 | |||
Vested | (141,437 | ) | 39.35 | |||
Unvested at December 31, 2019 | 440,048 | $ | 41.07 |
Shares | Weighted-Average Grant-Date Fair Value | |||||
Unvested at January 1, 2018 | — | $ | — | |||
Converted | 61,717 | 30.26 | ||||
Granted | 368,848 | 43.63 | ||||
Forfeited | (3,065 | ) | 37.45 | |||
Vested | (12,660 | ) | 36.93 | |||
Unvested at December 31, 2018 | 414,840 | $ | 41.91 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | ||||||||||||||||
Segment revenue: | ||||||||||||||||||||||
Production & Automation Technologies | $ | 931,081 | $ | 782,813 | $ | 638,017 | $ | 884,364 | $ | 932,591 | $ | 782,813 | ||||||||||
Drilling Technologies | 285,565 | 227,653 | 113,320 | 246,887 | 285,565 | 227,653 | ||||||||||||||||
Total revenue | $ | 1,216,646 | $ | 1,010,466 | $ | 751,337 | $ | 1,131,251 | $ | 1,218,156 | $ | 1,010,466 | ||||||||||
Income (loss) before income taxes: | ||||||||||||||||||||||
Segment operating profit (loss): | ||||||||||||||||||||||
Income before income taxes: | ||||||||||||||||||||||
Segment operating profit: | ||||||||||||||||||||||
Production & Automation Technologies | $ | 75,918 | $ | 26,890 | $ | (21,744 | ) | $ | 54,024 | $ | 74,187 | $ | 24,567 | |||||||||
Drilling Technologies | 98,620 | 74,317 | 8,397 | 73,497 | 98,620 | 74,317 | ||||||||||||||||
Total segment operating profit (loss) | 174,538 | 101,207 | (13,347 | ) | ||||||||||||||||||
Total segment operating profit | 127,521 | 172,807 | 98,884 | |||||||||||||||||||
Corporate expense and other (1) | 23,807 | 9,666 | 5,119 | 29,034 | 23,806 | 9,666 | ||||||||||||||||
Interest expense, net | 27,440 | 753 | 477 | 39,301 | 27,648 | 863 | ||||||||||||||||
Income (loss) before income taxes | $ | 123,291 | $ | 90,788 | $ | (18,943 | ) | |||||||||||||||
Income before income taxes | $ | 59,186 | $ | 121,353 | $ | 88,355 |
(1) | Corporate expense and other includes costs not directly attributable or allocated to our reporting segments such as corporate executive management and other administrative functions, costs related to our Separation from Dover and the results attributable to our noncontrolling interest. |
December 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Production & Automation Technologies | $ | 1,668,319 | $ | 1,702,396 | |||
Drilling Technologies | 209,880 | 231,438 | |||||
Corporate | 44,626 | 39,282 | |||||
Total assets | $ | 1,922,825 | $ | 1,973,116 |
December 31, | |||||||
(in thousands) | 2018 | 2017 | |||||
Production & Automation Technologies | $ | 1,699,820 | $ | 1,685,622 | |||
Drilling Technologies | 230,977 | 220,993 | |||||
Corporate | 40,959 | — | |||||
Total assets | $ | 1,971,756 | $ | 1,906,615 |
December 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Property, plant, and equipment, net: | |||||||
United States | $ | 238,464 | $ | 233,809 | |||
Middle East | 2,760 | 3,616 | |||||
Canada | 5,749 | 6,299 | |||||
Australia | 789 | 254 | |||||
Latin & South America | 419 | 350 | |||||
Total property, plant, and equipment, net | $ | 248,181 | $ | 244,328 |
December 31, | |||||||
(in thousands) | 2018 | 2017 | |||||
Long-lived assets: | |||||||
United States | $ | 233,809 | $ | 199,909 | |||
Middle East | 3,616 | 5,189 | |||||
Canada | 6,299 | 7,587 | |||||
Australia | 254 | 336 | |||||
Latin & South America | 350 | 541 | |||||
Total long-lived assets | $ | 244,328 | $ | 213,562 |
Capital Expenditures Years Ended December 31, | Depreciation & Amortization Years Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||
Production & Automation Technologies | $ | 30,291 | $ | 45,190 | $ | 28,483 | $ | 110,131 | $ | 112,955 | $ | 100,912 | |||||||||||
Drilling Technologies | 9,061 | 11,123 | 8,171 | 9,263 | 11,037 | 11,950 | |||||||||||||||||
Corporate | 428 | 1,605 | — | 544 | 469 | — | |||||||||||||||||
Total | $ | 39,780 | $ | 57,918 | $ | 36,654 | $ | 119,938 | $ | 124,461 | $ | 112,862 |
Capital Expenditures Years Ended December 31, | Depreciation & Amortization Years Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||
Production & Automation Technologies | $ | 45,190 | $ | 28,483 | $ | 21,961 | $ | 112,955 | $ | 100,912 | $ | 99,664 | |||||||||||
Drilling Technologies | 11,123 | 8,171 | 4,138 | 11,037 | 11,950 | 12,448 | |||||||||||||||||
Corporate | 1,605 | — | — | 469 | — | — | |||||||||||||||||
Total | $ | 57,918 | $ | 36,654 | $ | 26,099 | $ | 124,461 | $ | 112,862 | $ | 112,112 |
Year Ended December 31, 2018 | Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||||||||||||||||
Product revenue | $ | — | $ | 961,082 | $ | 124,389 | $ | — | $ | 1,085,471 | $ | — | $ | 884,355 | $ | 116,275 | $ | — | $ | 1,000,630 | ||||||||||||||||||
Service revenue | — | 56,996 | 26,159 | — | 83,155 | |||||||||||||||||||||||||||||||||
Lease, related party and other revenue | — | 71,977 | 19,725 | (43,682 | ) | 48,020 | ||||||||||||||||||||||||||||||||
Other revenue | — | 120,677 | 53,830 | (43,886 | ) | 130,621 | ||||||||||||||||||||||||||||||||
Total revenue | — | 1,090,055 | 170,273 | (43,682 | ) | 1,216,646 | — | 1,005,032 | 170,105 | (43,886 | ) | 1,131,251 | ||||||||||||||||||||||||||
Cost of goods and services | — | 696,044 | 147,280 | (42,977 | ) | 800,347 | — | 654,440 | 143,962 | (44,255 | ) | 754,147 | ||||||||||||||||||||||||||
Gross profit | — | 394,011 | 22,993 | (705 | ) | 416,299 | — | 350,592 | 26,143 | 369 | 377,104 | |||||||||||||||||||||||||||
Selling, general and administrative expense | 1,614 | 239,360 | 21,651 | — | 262,625 | 271 | 251,834 | 23,909 | — | 276,014 | ||||||||||||||||||||||||||||
Interest expense, net | 26,973 | 425 | 42 | — | 27,440 | 38,673 | 594 | 34 | — | 39,301 | ||||||||||||||||||||||||||||
Other expense, net | — | 1,322 | 1,620 | 1 | 2,943 | — | 937 | 1,666 | — | 2,603 | ||||||||||||||||||||||||||||
Income (loss) before income taxes and equity in earnings of affiliates | (28,587 | ) | 152,904 | (320 | ) | (706 | ) | 123,291 | (38,944 | ) | 97,227 | 534 | 369 | 59,186 | ||||||||||||||||||||||||
Provision for (benefit from) income taxes | (8,727 | ) | 37,193 | 478 | (148 | ) | 28,796 | (8,906 | ) | 13,934 | 1,122 | 76 | 6,226 | |||||||||||||||||||||||||
Income (loss) before equity in earnings of affiliates | (19,860 | ) | 115,711 | (798 | ) | (558 | ) | 94,495 | (30,038 | ) | 83,293 | (588 | ) | 293 | 52,960 | |||||||||||||||||||||||
Equity in earnings of affiliates | 113,901 | 27,121 | 46,802 | (187,824 | ) | — | 82,202 | 4,313 | 9,294 | (95,809 | ) | — | ||||||||||||||||||||||||||
Net income | 94,041 | 142,832 | 46,004 | (188,382 | ) | 94,495 | 52,164 | 87,606 | 8,706 | (95,516 | ) | 52,960 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | 454 | — | 454 | — | — | 796 | — | 796 | ||||||||||||||||||||||||||||
Net income attributable to Apergy | $ | 94,041 | $ | 142,832 | $ | 45,550 | $ | (188,382 | ) | $ | 94,041 | $ | 52,164 | $ | 87,606 | $ | 7,910 | $ | (95,516 | ) | $ | 52,164 | ||||||||||||||||
Comprehensive income attributable to Apergy | $ | 81,287 | $ | 141,528 | $ | 34,098 | $ | (175,626 | ) | $ | 81,287 | $ | 51,033 | $ | 86,077 | $ | 8,296 | $ | (94,373 | ) | $ | 51,033 |
Year Ended December 31, 2017 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||||||||||||||||
Product revenue | $ | — | $ | 797,504 | $ | 122,165 | $ | — | $ | 919,669 | $ | — | $ | 965,057 | $ | 125,161 | $ | — | $ | 1,090,218 | ||||||||||||||||||
Service revenue | — | 35,205 | 28,181 | — | 63,386 | |||||||||||||||||||||||||||||||||
Lease, related party and other revenue | — | 49,353 | 14,161 | (36,103 | ) | 27,411 | ||||||||||||||||||||||||||||||||
Other revenue | — | 126,508 | 45,112 | (43,682 | ) | 127,938 | ||||||||||||||||||||||||||||||||
Total revenue | — | 882,062 | 164,507 | (36,103 | ) | 1,010,466 | — | 1,091,565 | 170,273 | (43,682 | ) | 1,218,156 | ||||||||||||||||||||||||||
Cost of goods and services | — | 585,385 | 140,516 | (35,911 | ) | 689,990 | — | 696,874 | 147,255 | (42,977 | ) | 801,152 | ||||||||||||||||||||||||||
Gross profit | — | 296,677 | 23,991 | (192 | ) | 320,476 | — | 394,691 | 23,018 | (705 | ) | 417,004 | ||||||||||||||||||||||||||
Selling, general and administrative expense | — | 199,882 | 18,676 | — | 218,558 | 1,614 | 241,796 | 21,537 | — | 264,947 | ||||||||||||||||||||||||||||
Interest expense, net | — | 724 | 29 | — | 753 | 26,973 | 633 | 42 | — | 27,648 | ||||||||||||||||||||||||||||
Other expense, net | — | 10,169 | 208 | — | 10,377 | — | 1,322 | 1,733 | 1 | 3,056 | ||||||||||||||||||||||||||||
Income before income taxes and equity in earnings of affiliates | — | 85,902 | 5,078 | (192 | ) | 90,788 | (28,587 | ) | 150,940 | (294 | ) | (706 | ) | 121,353 | ||||||||||||||||||||||||
Benefit from income taxes | — | (10,272 | ) | (11,537 | ) | (67 | ) | (21,876 | ) | (8,727 | ) | 38,395 | (1,358 | ) | (148 | ) | 28,162 | |||||||||||||||||||||
Income before equity in earnings of affiliates | — | 96,174 | 16,615 | (125 | ) | 112,664 | (19,860 | ) | 112,545 | 1,064 | (558 | ) | 93,191 | |||||||||||||||||||||||||
Equity in earnings of affiliates | 111,734 | 23,426 | 12,334 | (147,494 | ) | — | 112,597 | 25,652 | 45,308 | (183,557 | ) | — | ||||||||||||||||||||||||||
Net income | 111,734 | 119,600 | 28,949 | (147,619 | ) | 112,664 | 92,737 | 138,197 | 46,372 | (184,115 | ) | 93,191 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | 930 | — | 930 | — | — | 454 | — | 454 | ||||||||||||||||||||||||||||
Net income attributable to Apergy | $ | 111,734 | $ | 119,600 | $ | 28,019 | $ | (147,619 | ) | $ | 111,734 | $ | 92,737 | $ | 138,197 | $ | 45,918 | $ | (184,115 | ) | $ | 92,737 | ||||||||||||||||
Comprehensive income attributable to Apergy | $ | 118,975 | $ | 122,480 | $ | 32,381 | $ | (154,861 | ) | $ | 118,975 | $ | 79,983 | $ | 136,893 | $ | 34,466 | $ | (171,359 | ) | $ | 79,983 |
Year Ended December 31, 2017 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Product revenue | $ | — | $ | 799,337 | $ | 123,355 | $ | — | $ | 922,692 | |||||||||
Other revenue | — | 82,725 | 41,152 | (36,103 | ) | 87,774 | |||||||||||||
Total revenue | — | 882,062 | 164,507 | (36,103 | ) | 1,010,466 | |||||||||||||
Cost of goods and services | — | 585,592 | 140,717 | (35,911 | ) | 690,398 | |||||||||||||
Gross profit | — | 296,470 | 23,790 | (192 | ) | 320,068 | |||||||||||||
Selling, general and administrative expense | — | 201,797 | 19,610 | — | 221,407 | ||||||||||||||
Interest expense, net | — | 834 | 29 | — | 863 | ||||||||||||||
Other expense, net | — | 10,169 | (726 | ) | — | 9,443 | |||||||||||||
Income before income taxes and equity in loss of affiliates | — | 83,670 | 4,877 | (192 | ) | 88,355 | |||||||||||||
Benefit from income taxes | — | (10,510 | ) | (11,587 | ) | (67 | ) | (22,164 | ) | ||||||||||
Income before equity in loss of affiliates | — | 94,180 | 16,464 | (125 | ) | 110,519 | |||||||||||||
Equity in earnings of affiliates | 109,589 | 21,294 | 10,335 | (141,218 | ) | — | |||||||||||||
Net income | 109,589 | 115,474 | 26,799 | (141,343 | ) | 110,519 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 930 | — | 930 | ||||||||||||||
Net income attributable to Apergy | $ | 109,589 | $ | 115,474 | $ | 25,869 | $ | (141,343 | ) | $ | 109,589 | ||||||||
Comprehensive income attributable to Apergy | $ | 116,830 | $ | 118,354 | $ | 30,231 | $ | (148,585 | ) | $ | 116,830 |
Year Ended December 31, 2016 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Product revenue | $ | — | $ | 577,351 | $ | 96,096 | $ | — | $ | 673,447 | |||||||||
Service revenue | — | 24,215 | 26,601 | — | 50,816 | ||||||||||||||
Lease, related party and other revenue | — | 42,826 | 19,917 | (35,669 | ) | 27,074 | |||||||||||||
Total revenue | — | 644,392 | 142,614 | (35,669 | ) | 751,337 | |||||||||||||
Cost of goods and services | — | 459,522 | 132,350 | (35,806 | ) | 556,066 | |||||||||||||
Gross profit | — | 184,870 | 10,264 | 137 | 195,271 | ||||||||||||||
Selling, general and administrative expense | — | 182,866 | 21,517 | — | 204,383 | ||||||||||||||
Interest expense, net | — | 465 | 12 | — | 477 | ||||||||||||||
Other expense, net | — | 9,163 | 191 | — | 9,354 | ||||||||||||||
Loss before income taxes and equity in loss of affiliates | — | (7,624 | ) | (11,456 | ) | 137 | (18,943 | ) | |||||||||||
Benefit from income taxes | — | (2,750 | ) | (5,341 | ) | 48 | (8,043 | ) | |||||||||||
Loss before equity in loss of affiliates | — | (4,874 | ) | (6,115 | ) | 89 | (10,900 | ) | |||||||||||
Equity in loss of affiliates | (12,751 | ) | (23,669 | ) | (8,273 | ) | 44,693 | — | |||||||||||
Net loss | (12,751 | ) | (28,543 | ) | (14,388 | ) | 44,782 | (10,900 | ) | ||||||||||
Net income attributable to noncontrolling interest | — | — | 1,851 | — | 1,851 | ||||||||||||||
Net loss attributable to Apergy | $ | (12,751 | ) | $ | (28,543 | ) | $ | (16,239 | ) | $ | 44,782 | $ | (12,751 | ) | |||||
Comprehensive loss attributable to Apergy | $ | (11,714 | ) | $ | (28,538 | ) | $ | (15,205 | ) | $ | 43,743 | $ | (11,714 | ) |
December 31, 2019 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 108 | $ | 21,705 | $ | 13,477 | $ | — | $ | 35,290 | |||||||||
Receivables | 572 | 190,101 | 39,000 | (9,799 | ) | 219,874 | |||||||||||||
Inventories, net | — | 181,596 | 31,015 | (1,269 | ) | 211,342 | |||||||||||||
Prepaid expenses and other current assets | 40 | 25,571 | 1,323 | — | 26,934 | ||||||||||||||
Total current assets | 720 | 418,973 | 84,815 | (11,068 | ) | 493,440 | |||||||||||||
Property, plant and equipment, net | — | 236,295 | 11,886 | — | 248,181 | ||||||||||||||
Goodwill | — | 639,281 | 271,832 | — | 911,113 | ||||||||||||||
Advances due from affiliates | 495,699 | 20,582 | 87,686 | (603,967 | ) | — | |||||||||||||
Investment in subsidiaries | 1,095,712 | 683,003 | 552,386 | (2,331,101 | ) | — | |||||||||||||
Intangible assets, net | — | 168,711 | 69,996 | — | 238,707 | ||||||||||||||
Other assets | 3,074 | 20,426 | 7,884 | — | 31,384 | ||||||||||||||
Total assets | 1,595,205 | 2,187,271 | 1,086,485 | (2,946,136 | ) | 1,922,825 | |||||||||||||
Liabilities and Equity | |||||||||||||||||||
Accounts payable | 60 | 102,120 | 27,910 | (9,799 | ) | 120,291 | |||||||||||||
Accrued compensation and employee benefits | — | 31,974 | 6,496 | — | 38,470 | ||||||||||||||
Current portion of finance lease liabilities | — | 4,745 | 100 | — | 4,845 | ||||||||||||||
Accrued expenses and other current liabilities | 3,639 | 28,627 | 5,078 | (1,269 | ) | 36,075 | |||||||||||||
Total current liabilities | 3,699 | 167,466 | 39,584 | (11,068 | ) | 199,681 | |||||||||||||
Advances due to affiliates | — | 583,386 | 20,581 | (603,967 | ) | — | |||||||||||||
Long-term debt | 555,292 | 4,388 | 141 | — | 559,821 | ||||||||||||||
Deferred income taxes | — | 68,286 | 15,774 | — | 84,060 | ||||||||||||||
Other long-term liabilities | — | 36,610 | 6,439 | — | 43,049 | ||||||||||||||
Total liabilities | 558,991 | 860,136 | 82,519 | (615,035 | ) | 886,611 | |||||||||||||
Equity: | |||||||||||||||||||
Stockholders’ capital | 1,036,214 | 1,336,012 | 1,035,872 | (2,331,101 | ) | 1,076,997 | |||||||||||||
Accumulated other comprehensive loss | — | (8,877 | ) | (35,160 | ) | — | (44,037 | ) | |||||||||||
Total stockholders’ equity | 1,036,214 | 1,327,135 | 1,000,712 | (2,331,101 | ) | 1,032,960 | |||||||||||||
Noncontrolling interest | — | — | 3,254 | — | 3,254 | ||||||||||||||
Total equity | 1,036,214 | 1,327,135 | 1,003,966 | (2,331,101 | ) | 1,036,214 | |||||||||||||
Total liabilities and equity | $ | 1,595,205 | $ | 2,187,271 | $ | 1,086,485 | $ | (2,946,136 | ) | $ | 1,922,825 |
December 31, 2018 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 108 | $ | 27,533 | $ | 14,191 | $ | — | $ | 41,832 | |||||||||
Receivables | 1,743 | 231,718 | 35,019 | (17,044 | ) | 251,436 | |||||||||||||
Inventories, net | — | 190,117 | 30,936 | (1,632 | ) | 219,421 | |||||||||||||
Prepaid expenses and other current assets | 24,583 | 15,387 | 3,106 | (24,542 | ) | 18,534 | |||||||||||||
Total current assets | 26,434 | 464,755 | 83,252 | (43,218 | ) | 531,223 | |||||||||||||
Property, plant and equipment, net | — | 231,373 | 12,955 | — | 244,328 | ||||||||||||||
Goodwill | — | 633,771 | 271,214 | — | 904,985 | ||||||||||||||
Advances due from affiliates | 600,802 | 14,185 | 82,889 | (697,876 | ) | — | |||||||||||||
Investment in subsidiaries | 1,008,325 | 682,545 | 540,622 | (2,231,492 | ) | — | |||||||||||||
Intangible assets, net | — | 198,531 | 85,157 | — | 283,688 | ||||||||||||||
Other assets | 3,996 | 2,818 | 2,078 | — | 8,892 | ||||||||||||||
Total assets | 1,639,557 | 2,227,978 | 1,078,167 | (2,972,586 | ) | 1,973,116 | |||||||||||||
Liabilities and Equity | |||||||||||||||||||
Accounts payable | 22 | 123,812 | 33,335 | (17,044 | ) | 140,125 | |||||||||||||
Accrued compensation and employee benefits | — | 35,278 | 5,268 | — | 40,546 | ||||||||||||||
Current portion of finance lease liabilities | — | 4,320 | — | — | 4,320 | ||||||||||||||
Accrued expenses and other current liabilities | 4,929 | 46,458 | 3,548 | (26,174 | ) | 28,761 | |||||||||||||
Total current liabilities | 4,951 | 209,868 | 42,151 | (43,218 | ) | 213,752 | |||||||||||||
Intercompany notes payable | — | 683,700 | 14,176 | (697,876 | ) | — | |||||||||||||
Long-term debt | 658,623 | 4,462 | 122 | — | 663,207 | ||||||||||||||
Deferred income taxes | — | 79,344 | 20,428 | — | 99,772 | ||||||||||||||
Other long-term liabilities | — | 19,441 | 961 | — | 20,402 | ||||||||||||||
Total liabilities | 663,574 | 996,815 | 77,838 | (741,094 | ) | 997,133 | |||||||||||||
Equity: | |||||||||||||||||||
Stockholders’ capital | 975,983 | 1,238,517 | 1,033,423 | (2,231,492 | ) | 1,016,431 | |||||||||||||
Accumulated other comprehensive loss | — | (7,354 | ) | (35,552 | ) | — | (42,906 | ) | |||||||||||
Total stockholders’ equity | 975,983 | 1,231,163 | 997,871 | (2,231,492 | ) | 973,525 | |||||||||||||
Noncontrolling interest | — | — | 2,458 | — | 2,458 | ||||||||||||||
Total equity | 975,983 | 1,231,163 | 1,000,329 | (2,231,492 | ) | 975,983 | |||||||||||||
Total liabilities and equity | $ | 1,639,557 | $ | 2,227,978 | $ | 1,078,167 | $ | (2,972,586 | ) | $ | 1,973,116 |
December 31, 2018 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 108 | $ | 27,533 | $ | 14,191 | $ | — | $ | 41,832 | |||||||||
Receivables | 1,743 | 230,230 | 35,019 | (17,044 | ) | 249,948 | |||||||||||||
Inventories, net | — | 189,015 | 30,936 | (1,632 | ) | 218,319 | |||||||||||||
Prepaid expenses and other current assets | 24,583 | 17,064 | 3,106 | (24,542 | ) | 20,211 | |||||||||||||
Total current assets | 26,434 | 463,842 | 83,252 | (43,218 | ) | 530,310 | |||||||||||||
Property, plant and equipment, net | — | 231,373 | 12,955 | — | 244,328 | ||||||||||||||
Goodwill | — | 633,771 | 271,214 | — | 904,985 | ||||||||||||||
Advances due from affiliates | 600,802 | 14,185 | 82,889 | (697,876 | ) | — | |||||||||||||
Investment in subsidiaries | 1,013,869 | 687,691 | 545,298 | (2,246,858 | ) | — | |||||||||||||
Intangible assets, net | — | 198,531 | 85,157 | — | 283,688 | ||||||||||||||
Other assets | 3,996 | 2,371 | 2,078 | — | 8,445 | ||||||||||||||
Total assets | 1,645,101 | 2,231,764 | 1,082,843 | (2,987,952 | ) | 1,971,756 | |||||||||||||
Liabilities and Equity | |||||||||||||||||||
Accounts payable | 22 | 114,745 | 33,335 | (17,044 | ) | 131,058 | |||||||||||||
Accrued compensation and employee benefits | — | 35,278 | 5,268 | — | 40,546 | ||||||||||||||
Accrued expenses and other current liabilities | 4,929 | 46,722 | 4,914 | (26,174 | ) | 30,391 | |||||||||||||
Total current liabilities | 4,951 | 196,745 | 43,517 | (43,218 | ) | 201,995 | |||||||||||||
Advances due to affiliates | — | 683,700 | 14,176 | (697,876 | ) | — | |||||||||||||
Long-term debt | 658,623 | 7,363 | 122 | — | 666,108 | ||||||||||||||
Deferred income taxes | — | 81,296 | 20,428 | — | 101,724 | ||||||||||||||
Other long-term liabilities | — | 19,441 | 961 | — | 20,402 | ||||||||||||||
Total liabilities | 663,574 | 988,545 | 79,204 | (741,094 | ) | 990,229 | |||||||||||||
Equity: | |||||||||||||||||||
Stockholders’ capital | 981,527 | 1,250,573 | 1,036,733 | (2,246,858 | ) | 1,021,975 | |||||||||||||
Accumulated other comprehensive loss | — | (7,354 | ) | (35,552 | ) | — | (42,906 | ) | |||||||||||
Total stockholders’ equity | 981,527 | 1,243,219 | 1,001,181 | (2,246,858 | ) | 979,069 | |||||||||||||
Noncontrolling interest | — | — | 2,458 | — | 2,458 | ||||||||||||||
Total equity | 981,527 | 1,243,219 | 1,003,639 | (2,246,858 | ) | 981,527 | |||||||||||||
Total liabilities and equity | $ | 1,645,101 | $ | 2,231,764 | $ | 1,082,843 | $ | (2,987,952 | ) | $ | 1,971,756 |
Year Ended December 31, 2019 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Cash provided (required) by operating activities | $ | (48,970 | ) | $ | 204,877 | $ | (8 | ) | $ | — | $ | 155,899 | |||||||
Cash provided (required) by investing activities: | |||||||||||||||||||
Capital expenditures | — | (37,725 | ) | (2,055 | ) | — | (39,780 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 4,580 | 18 | — | 4,598 | ||||||||||||||
Payment on sale of business | — | (2,194 | ) | — | — | (2,194 | ) | ||||||||||||
Acquisitions | — | (12,500 | ) | — | — | (12,500 | ) | ||||||||||||
Net cash required by investing activities | — | (47,839 | ) | (2,037 | ) | — | (49,876 | ) | |||||||||||
Cash provided (required) by financing activities: | |||||||||||||||||||
Proceeds from long-term debt, net of discounts | 36,500 | — | — | — | 36,500 | ||||||||||||||
Repayment of long-term debt | (141,500 | ) | — | — | — | (141,500 | ) | ||||||||||||
Advances due to (from) affiliates | 153,970 | (155,578 | ) | 1,608 | — | — | |||||||||||||
Payments on capital lease obligations | — | (5,493 | ) | (62 | ) | — | (5,555 | ) | |||||||||||
Payments related to taxes withheld on stock-based | — | (1,795 | ) | (53 | ) | — | (1,848 | ) | |||||||||||
Net cash provided (required) by financing activities | 48,970 | (162,866 | ) | 1,493 | — | (112,403 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (162 | ) | — | (162 | ) | ||||||||||||
Net (increase) decrease in cash and cash equivalents | — | (5,828 | ) | (714 | ) | — | (6,542 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 108 | 27,533 | 14,191 | — | 41,832 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 108 | $ | 21,705 | $ | 13,477 | $ | — | $ | 35,290 |
December 31, 2017 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 5,763 | $ | 17,949 | $ | — | $ | 23,712 | |||||||||
Receivables | — | 170,788 | 34,335 | (3,674 | ) | 201,449 | |||||||||||||
Inventories, net | — | 174,842 | 27,488 | (928 | ) | 201,402 | |||||||||||||
Prepaid expenses and other current assets | — | 12,864 | 2,048 | — | 14,912 | ||||||||||||||
Total current assets | — | 364,257 | 81,820 | (4,602 | ) | 441,475 | |||||||||||||
Property, plant and equipment, net | — | 197,309 | 16,253 | — | 213,562 | ||||||||||||||
Goodwill | — | 633,734 | 276,354 | — | 910,088 | ||||||||||||||
Advances due from affiliates | — | 10,299 | 60,109 | (70,408 | ) | — | |||||||||||||
Investment in subsidiaries | 1,640,385 | 801,915 | 388,994 | (2,831,294 | ) | — | |||||||||||||
Intangible assets, net | — | 234,795 | 103,715 | — | 338,510 | ||||||||||||||
Other assets | — | 2,129 | 851 | — | 2,980 | ||||||||||||||
Total assets | 1,640,385 | 2,244,438 | 928,096 | (2,906,304 | ) | 1,906,615 | |||||||||||||
Liabilities and Equity | |||||||||||||||||||
Accounts payable | — | 83,866 | 18,634 | (3,674 | ) | 98,826 | |||||||||||||
Accrued compensation and employee benefits | — | 24,875 | 5,414 | — | 30,289 | ||||||||||||||
Accrued expenses and other current liabilities | — | 13,711 | 7,989 | (325 | ) | 21,375 | |||||||||||||
Total current liabilities | — | 122,452 | 32,037 | (3,999 | ) | 150,490 | |||||||||||||
Long-term debt | — | 5,772 | 34 | — | 5,806 | ||||||||||||||
Deferred income taxes | — | 75,075 | 21,910 | — | 96,985 | ||||||||||||||
Other long-term liabilities | — | 73,057 | 10,300 | (70,408 | ) | 12,949 | |||||||||||||
Total liabilities | — | 276,356 | 64,281 | (74,407 | ) | 266,230 | |||||||||||||
Equity: | |||||||||||||||||||
Stockholders’ capital | 1,640,385 | 1,972,819 | 880,745 | (2,831,897 | ) | 1,662,052 | |||||||||||||
Accumulated other comprehensive loss | — | (4,737 | ) | (21,679 | ) | — | (26,416 | ) | |||||||||||
Total stockholders’ equity | 1,640,385 | 1,968,082 | 859,066 | (2,831,897 | ) | 1,635,636 | |||||||||||||
Noncontrolling interest | — | — | 4,749 | — | 4,749 | ||||||||||||||
Total equity | 1,640,385 | 1,968,082 | 863,815 | (2,831,897 | ) | 1,640,385 | |||||||||||||
Total liabilities and equity | $ | 1,640,385 | $ | 2,244,438 | $ | 928,096 | $ | (2,906,304 | ) | $ | 1,906,615 |
Year Ended December 31, 2018 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Cash provided (required) by operating activities | $ | (51,728 | ) | $ | 200,907 | $ | 15,720 | $ | (999 | ) | $ | 163,900 | |||||||
Cash provided (required) by investing activities: | |||||||||||||||||||
Capital expenditures | — | (55,070 | ) | (2,848 | ) | — | (57,918 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 1,127 | 60 | — | 1,187 | ||||||||||||||
Proceeds from the sale of businesses | — | 2,473 | — | — | 2,473 | ||||||||||||||
Purchase price adjustments on acquisition | — | — | 53 | — | 53 | ||||||||||||||
Net cash required by investing activities | — | (51,470 | ) | (2,735 | ) | — | (54,205 | ) | |||||||||||
Cash provided (required) by financing activities: | |||||||||||||||||||
Proceeds from long-term debt, net of discounts | 713,963 | — | — | — | 713,963 | ||||||||||||||
Payment of debt issue costs | (16,006 | ) | — | — | — | (16,006 | ) | ||||||||||||
Repayment of long-term debt | (45,000 | ) | — | — | — | (45,000 | ) | ||||||||||||
Advances due to (from) affiliates | (600,802 | ) | 621,109 | (20,307 | ) | — | — | ||||||||||||
Distributions to Dover Corporation, net | (319 | ) | (744,258 | ) | 7,021 | 999 | (736,557 | ) | |||||||||||
Distribution to noncontrolling interest | — | — | (2,720 | ) | — | (2,720 | ) | ||||||||||||
Payments on capital lease obligations | — | (4,518 | ) | — | — | (4,518 | ) | ||||||||||||
Net cash provided (required) by financing activities | 51,836 | (127,667 | ) | (16,006 | ) | 999 | (90,838 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (737 | ) | — | (737 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 108 | 21,770 | (3,758 | ) | — | 18,120 | |||||||||||||
Cash and cash equivalents at beginning of period | — | 5,763 | 17,949 | — | 23,712 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 108 | $ | 27,533 | $ | 14,191 | $ | — | $ | 41,832 |
Year Ended December 31, 2017 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Cash provided by operating activities | $ | — | $ | 64,422 | $ | 11,561 | $ | 67 | $ | 76,050 | |||||||||
Cash provided (required) by investing activities: | |||||||||||||||||||
Capital expenditures | — | (35,008 | ) | (1,646 | ) | — | (36,654 | ) | |||||||||||
Acquisitions, net of cash and cash equivalents acquired | — | — | (8,842 | ) | — | (8,842 | ) | ||||||||||||
Proceeds from sale of property, plant and equipment | — | 3,433 | 114 | — | 3,547 | ||||||||||||||
Net cash required by investing activities | — | (31,575 | ) | (10,374 | ) | — | (41,949 | ) | |||||||||||
Cash provided (required) by financing activities: | |||||||||||||||||||
Change in borrowings, net | — | — | (599 | ) | — | (599 | ) | ||||||||||||
Distributions to Dover Corporation, net | — | (27,124 | ) | (4,001 | ) | (67 | ) | (31,192 | ) | ||||||||||
Distribution to noncontrolling interest | — | — | (1,212 | ) | — | (1,212 | ) | ||||||||||||
Payments of capital lease obligations | — | (3,690 | ) | — | — | (3,690 | ) | ||||||||||||
Net cash required by financing activities | — | (30,814 | ) | (5,812 | ) | (67 | ) | (36,693 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 277 | — | 277 | ||||||||||||||
Net increase in cash and cash equivalents | — | 2,033 | (4,348 | ) | — | (2,315 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 3,730 | 22,297 | — | 26,027 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 5,763 | $ | 17,949 | $ | — | $ | 23,712 |
Year Ended December 31, 2018 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Cash provided (required) by operating activities | $ | (51,728 | ) | $ | 200,907 | $ | 15,720 | $ | (999 | ) | $ | 163,900 | |||||||
Cash provided (required) by investing activities: | |||||||||||||||||||
Capital expenditures | — | (55,070 | ) | (2,848 | ) | — | (57,918 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 1,127 | 60 | — | 1,187 | ||||||||||||||
Proceeds from sale of business | — | 2,473 | — | — | 2,473 | ||||||||||||||
Purchase price adjustments on acquisition | — | — | 53 | — | 53 | ||||||||||||||
Net cash required by investing activities | — | (51,470 | ) | (2,735 | ) | — | (54,205 | ) | |||||||||||
Cash provided (required) by financing activities: | |||||||||||||||||||
Proceeds from long-term debt, net of discounts | 713,963 | — | — | — | 713,963 | ||||||||||||||
Payment of debt issue costs | (16,006 | ) | — | — | — | (16,006 | ) | ||||||||||||
Repayment of long-term debt | (45,000 | ) | — | — | — | (45,000 | ) | ||||||||||||
Advances due to (from) affiliates | (600,802 | ) | 621,109 | (20,307 | ) | — | — | ||||||||||||
Distributions to Dover Corporation, net | (319 | ) | (744,258 | ) | 7,021 | 999 | (736,557 | ) | |||||||||||
Distribution to noncontrolling interest | — | — | (2,720 | ) | — | (2,720 | ) | ||||||||||||
Payments on capital lease obligations | — | (4,518 | ) | — | — | (4,518 | ) | ||||||||||||
Net cash provided (required) by financing activities | 51,836 | (127,667 | ) | (16,006 | ) | 999 | (90,838 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (737 | ) | — | (737 | ) | ||||||||||||
Net (increase) decrease in cash and cash equivalents | 108 | 21,770 | (3,758 | ) | — | 18,120 | |||||||||||||
Cash and cash equivalents at beginning of period | — | 5,763 | 17,949 | — | 23,712 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 108 | $ | 27,533 | $ | 14,191 | $ | — | $ | 41,832 |
Year Ended December 31, 2017 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Cash provided by operating activities | $ | — | $ | 64,422 | $ | 11,561 | $ | 67 | $ | 76,050 | |||||||||
Cash provided (required) by investing activities: | |||||||||||||||||||
Capital expenditures | — | (35,008 | ) | (1,646 | ) | — | (36,654 | ) | |||||||||||
Acquisitions, net of cash and cash equivalents acquired | — | — | (8,842 | ) | — | (8,842 | ) | ||||||||||||
Proceeds from sale of property, plant and equipment | — | 3,433 | 114 | — | 3,547 | ||||||||||||||
Net cash required by investing activities | — | (31,575 | ) | (10,374 | ) | — | (41,949 | ) | |||||||||||
Cash provided (required) by financing activities: | |||||||||||||||||||
Change in borrowings, net | — | — | (599 | ) | — | (599 | ) | ||||||||||||
Distributions to Dover Corporation, net | — | (27,124 | ) | (4,001 | ) | (67 | ) | (31,192 | ) | ||||||||||
Distribution to noncontrolling interest | — | — | (1,212 | ) | — | (1,212 | ) | ||||||||||||
Payments on capital lease obligations | — | (3,690 | ) | — | — | (3,690 | ) | ||||||||||||
Net cash required by financing activities | — | (30,814 | ) | (5,812 | ) | (67 | ) | (36,693 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 277 | — | 277 | ||||||||||||||
Net (increase) decrease in cash and cash equivalents | — | 2,033 | (4,348 | ) | — | (2,315 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 3,730 | 22,297 | — | 26,027 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 5,763 | $ | 17,949 | $ | — | $ | 23,712 |
Year Ended December 31, 2016 | |||||||||||||||||||
(in thousands) | Apergy Corporation | Subsidiary Guarantors | Subsidiary Non-guarantors | Adjustments and eliminations | Total | ||||||||||||||
Cash provided by operating activities | $ | — | $ | 107,060 | $ | 25,979 | $ | (48 | ) | $ | 132,991 | ||||||||
Cash provided (required) by investing activities: | |||||||||||||||||||
Capital expenditures | — | (22,325 | ) | (3,774 | ) | — | (26,099 | ) | |||||||||||
Proceeds from sale of property, plant and equipment | — | 2,245 | 281 | — | 2,526 | ||||||||||||||
Additions to intangible assets | — | (3,700 | ) | — | — | (3,700 | ) | ||||||||||||
Net cash required by investing activities | — | (23,780 | ) | (3,493 | ) | — | (27,273 | ) | |||||||||||
Cash provided (required) by financing activities: | |||||||||||||||||||
Distributions to Dover Corporation, net | — | (78,232 | ) | (6,070 | ) | 48 | (84,254 | ) | |||||||||||
Distribution to noncontrolling interest | — | — | (1,727 | ) | — | (1,727 | ) | ||||||||||||
Payments of capital lease obligations | — | (4,037 | ) | — | — | (4,037 | ) | ||||||||||||
Net cash required by financing activities | — | (82,269 | ) | (7,797 | ) | 48 | (90,018 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (90 | ) | — | (90 | ) | ||||||||||||
Net increase in cash and cash equivalents | — | 1,011 | 14,599 | — | 15,610 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 2,719 | 7,698 | — | 10,417 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 3,730 | $ | 22,297 | $ | — | $ | 26,027 |
Years Ended December 31, | |||||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||||
Cash information: | |||||||||||
Cash paid for income taxes | $ | 26,464 | $ | 27,191 | $ | 8,698 | |||||
Cash paid for interest | 36,085 | 21,899 | — |
Years Ended December 31, | |||||||||||
(in thousands) | 2018 | 2017 | 2016 | ||||||||
Cash information: | |||||||||||
Cash paid for income taxes | $ | 27,191 | $ | 8,698 | $ | 7,285 | |||||
Cash paid for interest | 21,899 | — | — | ||||||||
Non-cash information: | |||||||||||
Capital lease additions | 4,428 | 4,557 | 755 |
(in thousands) | Statement of Cash Flows Classification | December 31, 2019 | |||
Cash paid for amounts included in measurement of lease liabilities: | |||||
Operating leases (1) | Operating | $ | 12,026 | ||
Finance leases - interest | Operating | 439 | |||
Finance leases - principal | Financing | 5,555 | |||
Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: | |||||
Operating leases (2) | Non-cash | $ | 38,225 | ||
Finance leases (3) | Non-cash | 6,412 |
2018(1) | 2017(1) | ||||||||||||||||||||||||||||||
(in thousands, except per share data) | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | |||||||||||||||||||||||
Revenue | $ | 311,202 | $ | 316,468 | $ | 305,850 | $ | 283,126 | $ | 265,195 | $ | 258,832 | $ | 256,161 | $ | 230,278 | |||||||||||||||
Gross profit | 105,271 | 113,734 | 103,680 | 93,614 | 75,534 | 84,952 | 84,630 | 75,360 | |||||||||||||||||||||||
Net income (2) | 22,732 | 25,494 | 22,075 | 24,194 | 61,225 | 18,820 | 19,033 | 13,586 | |||||||||||||||||||||||
Net income attributable to Apergy (2) | 22,571 | 25,263 | 22,155 | 24,052 | 61,155 | 18,556 | 18,754 | 13,269 | |||||||||||||||||||||||
Basic earnings per share (3) | $ | 0.29 | $ | 0.33 | $ | 0.29 | $ | 0.31 | $ | 0.79 | $ | 0.24 | $ | 0.24 | $ | 0.17 | |||||||||||||||
Diluted earnings per share (3) | $ | 0.29 | $ | 0.33 | $ | 0.28 | $ | 0.31 | $ | 0.79 | $ | 0.24 | $ | 0.24 | $ | 0.17 |
2019 | 2018 | ||||||||||||||||||||||||||||||
(in thousands, except per share data) | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | |||||||||||||||||||||||
Revenue | $ | 247,748 | $ | 276,839 | $ | 306,170 | $ | 300,494 | $ | 313,133 | $ | 316,171 | $ | 305,747 | $ | 283,105 | |||||||||||||||
Gross profit | 72,634 | 92,699 | 108,760 | 103,011 | 106,595 | 112,327 | 104,090 | 93,992 | |||||||||||||||||||||||
Net income (loss) | (1,574 | ) | 11,588 | 23,008 | 19,938 | 23,347 | 24,015 | 21,879 | 23,950 | ||||||||||||||||||||||
Net income (loss) attributable to Apergy | (1,823 | ) | 11,394 | 22,937 | 19,656 | 23,187 | 23,961 | 21,816 | 23,773 | ||||||||||||||||||||||
Basic earnings (loss) per share (1) | $ | (0.02 | ) | $ | 0.15 | $ | 0.30 | $ | 0.25 | $ | 0.30 | $ | 0.31 | $ | 0.28 | $ | 0.31 | ||||||||||||||
Diluted earnings (loss) per share (1) | $ | (0.02 | ) | $ | 0.15 | $ | 0.30 | $ | 0.25 | $ | 0.30 | $ | 0.31 | $ | 0.28 | $ | 0.31 |
Three Months Ended December 31, 2018 | ||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | |||||||||
Total revenue | $ | 311,202 | $ | 1,931 | $ | 313,133 | ||||||
Gross profit | 105,271 | 1,324 | 106,595 | |||||||||
Net income | 22,732 | 615 | 23,347 | |||||||||
Net income attributable to Apergy | $ | 22,571 | $ | 616 | $ | 23,187 | ||||||
Earnings per share attributable to Apergy: | ||||||||||||
Basic | $ | 0.29 | $ | 0.01 | $ | 0.30 | ||||||
Diluted | $ | 0.29 | $ | 0.01 | $ | 0.30 |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Total revenue | $ | 278,381 | $ | (1,542 | ) | $ | 276,839 | $ | 316,468 | $ | (297 | ) | $ | 316,171 | |||||||||
Gross profit | 91,519 | 1,180 | 92,699 | 113,734 | (1,407 | ) | 112,327 | ||||||||||||||||
Net income | 10,419 | 1,169 | 11,588 | 25,496 | (1,481 | ) | 24,015 | ||||||||||||||||
Net income attributable to Apergy | $ | 10,225 | $ | 1,169 | $ | 11,394 | $ | 25,264 | $ | (1,303 | ) | $ | 23,961 | ||||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.02 | $ | 0.15 | $ | 0.33 | $ | (0.02 | ) | $ | 0.31 | ||||||||||
Diluted | $ | 0.13 | $ | 0.02 | $ | 0.15 | $ | 0.33 | $ | (0.02 | ) | $ | 0.31 |
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Total revenue | $ | 306,054 | $ | 116 | $ | 306,170 | $ | 305,850 | $ | (103 | ) | $ | 305,747 | ||||||||||
Gross profit | 109,769 | (1,009 | ) | 108,760 | 103,679 | 411 | 104,090 | ||||||||||||||||
Net income | 23,850 | (842 | ) | 23,008 | 22,075 | (196 | ) | 21,879 | |||||||||||||||
Net income attributable to Apergy | $ | 23,779 | $ | (842 | ) | $ | 22,937 | $ | 22,154 | $ | (338 | ) | $ | 21,816 | |||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.31 | $ | (0.01 | ) | $ | 0.30 | $ | 0.29 | $ | (0.01 | ) | $ | 0.28 | |||||||||
Diluted | $ | 0.31 | $ | (0.01 | ) | $ | 0.30 | $ | 0.28 | $ | — | $ | 0.28 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||||||||||||
(in thousands, except per share data) | As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||||
Total revenue | $ | 301,691 | $ | (1,197 | ) | $ | 300,494 | $ | 283,126 | $ | (21 | ) | $ | 283,105 | |||||||||
Gross profit | 105,549 | (2,538 | ) | 103,011 | 93,615 | 377 | 93,992 | ||||||||||||||||
Net income | 22,569 | (2,631 | ) | 19,938 | 24,194 | (244 | ) | 23,950 | |||||||||||||||
Net income attributable to Apergy | $ | 22,287 | $ | (2,631 | ) | $ | 19,656 | $ | 24,052 | $ | (279 | ) | $ | 23,773 | |||||||||
Earnings per share attributable to Apergy: | |||||||||||||||||||||||
Basic | $ | 0.29 | $ | (0.04 | ) | $ | 0.25 | $ | 0.31 | $ | — | $ | 0.31 | ||||||||||
Diluted | $ | 0.29 | $ | (0.04 | ) | $ | 0.25 | $ | 0.31 | $ | — | $ | 0.31 |
Material weakness related to |
Material weakness related to manual journal entries: The Company did not maintain effective controls over the recording of manual journal entries. Specifically, controls were not operating effectively to ensure that journal entries were properly prepared with appropriate supporting documentation and/or were reviewed and approved appropriately to ensure the accuracy of journal entries. This material weakness did not result in |
• | Material weakness related to inventory and fixed assets: The Company did not design and maintain effective controls over the completeness, accuracy, existence and presentation and disclosure of inventory and fixed assets. Specifically, controls were not designed or maintained to (a) properly account for asset disposals and active and terminated leases, and (b) properly account for transfers between inventory and leased assets. This material weakness did not result in any material misstatements to the Company’s consolidated financial statements or disclosures, however, this material weakness resulted in audit adjustments to the consolidated financial statements as of and for the year ended December 31, 2019. In addition, previously-issued interim financial statements have been revised to correct immaterial misstatements to cost of goods sold, inventory and fixed assets for the quarters ended March 31, June 30 and September 30, 2019. Additionally, this material weakness could result in a misstatement of the aforementioned account balances or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or detected. |
1. |
2. | Financial Statement Schedule and related Report of Independent Registered Public Accounting Firm: |
3. | Exhibits: |
Allowance for Doubtful Accounts | Balance at Beginning of Year | Charged to Cost and Expense(1) | Accounts Written Off | Other | Balance at End of Year | Balance at Beginning of Year | Charged to Cost and Expense(1) | Accounts Written Off | Other | Balance at End of Year | ||||||||||||||||||||||||||||
Year Ended December 31, 2019 | $ | 4,745 | $ | 4,955 | $ | (1,447 | ) | $ | (181 | ) | $ | 8,072 | ||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 4,753 | $ | 2,007 | $ | (1,489 | ) | $ | (93 | ) | $ | 5,178 | 4,753 | 2,007 | (1,489 | ) | (526 | ) | 4,745 | |||||||||||||||||||
Year Ended December 31, 2017 | 5,634 | 954 | (1,882 | ) | 47 | 4,753 | 5,634 | 954 | (1,882 | ) | 47 | 4,753 | ||||||||||||||||||||||||||
Year Ended December 31, 2016 | 4,431 | 2,941 | (1,469 | ) | (269 | ) | 5,634 |
Deferred Tax Valuation Allowance | Balance at Beginning of Year | Additions | Reductions | Other | Balance at End of Year | Balance at Beginning of Year | Additions | Reductions | Other | Balance at End of Year | ||||||||||||||||||||||||||||
Year Ended December 31, 2019 | $ | 722 | $ | 5,556 | $ | (251 | ) | $ | — | $ | 6,027 | |||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | 1,280 | $ | 331 | $ | (889 | ) | $ | — | $ | 722 | 1,280 | 331 | (889 | ) | — | 722 | |||||||||||||||||||||
Year Ended December 31, 2017 | 1,082 | 198 | — | — | 1,280 | 1,082 | 198 | — | — | 1,280 | ||||||||||||||||||||||||||||
Year Ended December 31, 2016 | 64 | 1,018 | — | — | 1,082 |
LIFO Valuation Adjustments | Balance at Beginning of Year | Charged to Cost and Expense | Reductions | Other | Balance at End of Year | ||||||||||||||
Year Ended December 31, 2019 | $ | 12,867 | $ | 2,922 | $ | — | $ | — | $ | 15,789 | |||||||||
Year Ended December 31, 2018 | 10,556 | 2,311 | — | — | 12,867 | ||||||||||||||
Year Ended December 31, 2017 | 9,381 | 1,175 | — | — | 10,556 |
LIFO Valuation Adjustments | Balance at Beginning of Year | Charged to Cost and Expense | Reductions | Other | Balance at End of Year | ||||||||||||||
Year Ended December 31, 2018 | $ | 10,556 | $ | 2,311 | $ | — | $ | — | $ | 12,867 | |||||||||
Year Ended December 31, 2017 | 9,381 | 1,175 | — | — | 10,556 | ||||||||||||||
Year Ended December 31, 2016 | 12,933 | — | (3,552 | ) | — | 9,381 |
APERGY CORPORATION (Registrant) | ||||
Date: | By: | /s/ JAY A. NUTT | ||
Jay A. Nutt | ||||
Senior Vice President and Chief Financial Officer |
Date | Signature | |||
/s/ SIVASANKARAN SOMASUNDARAM | ||||
Sivasankaran Somasundaram President and Chief Executive Officer Director | ||||
(Principal Executive Officer) | ||||
March 2, 2020 | /s/ JAY A. NUTT | |||
Jay A. Nutt Senior Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) | ||||
March 2, 2020 | /s/ MICHAEL D. WHITE | |||
Michael D. White Vice President, Corporate Controller and Chief Accounting Officer | ||||
(Principal Accounting Officer) | ||||
March 2, 2020 | /s/ MAMATHA CHAMARTHI | |||
Mamatha Chamarthi Director | ||||
March 2, 2020 | /s/ KENNETH M. FISHER | |||
Kenneth M. Fisher Director | ||||
March 2, 2020 | /s/ GARY P. LUQUETTE | |||
Gary P. Luquette Director | ||||
March 2, 2020 | /s/ DANIEL W. RABUN | |||
Daniel W. Rabun Chairman of the Board of Directors | ||||
March 2, 2020 | /s/ STEPHEN M. TODD | |||
Stephen M. Todd Director | ||||
March 2, 2020 | /s/ STEPHEN K. WAGNER | |||
Stephen K. Wagner Director |
Incorporated by Reference | ||||||
Exhibit No. | Exhibit Description | Form | Exhibit No. | Filing Date | ||
8-K | 2.1 | May 11, 2018 | ||||
8-K | 3.1 | May 11, 2018 | ||||
8-K | 3.2 | May 11, 2018 | ||||
8-K | 4.1 | May 7, 2018 | ||||
8-K | 4.2 | May 7, 2018 | ||||
8-K | 4.3 | May 7, 2018 | ||||
8-K | 4.1 | May 11, 2018 | ||||
8-K | 10.1 | May 11, 2018 | ||||
8-K | 10.2 | May 11, 2018 | ||||
8-K | 10.3 | May 11, 2018 | ||||
8-K | 10.4 | May 11, 2018 | ||||
8-K | 10.5 | May 11, 2018 | ||||
8-K | 10.6 | May 11, 2018 | ||||
8-K | 10.7 | May 11, 2018 | ||||
8-K | 10.8 | May 11, 2018 | ||||
8-K | 10.9 | May 11, 2018 | ||||
8-K | 10.10 | May 11, 2018 | ||||
8-K | 10.11 | May 11, 2018 | ||||
21.1* | ||||||
23.1* | ||||||
31.1* | ||||||
31.2* | ||||||
32.1** | ||||||
32.2** |
Incorporated by Reference | ||||||
Exhibit No. | Exhibit Description | Form | Exhibit No. | Filing Date | ||
8-K | 2.1 | May 11, 2018 | ||||
8-K | 2.1 | December 20, 2019 | ||||
8-K | 2.2 | December 20, 2019 | ||||
8-K | 3.1 | May 11, 2018 | ||||
8-K | 3.2 | May 11, 2018 | ||||
8-K | 4.1 | May 7, 2018 | ||||
8-K | 4.2 | May 7, 2018 | ||||
8-K | 4.3 | May 7, 2018 | ||||
8-K | 4.1 | May 11, 2018 | ||||
4.5* | ||||||
4.6* | ||||||
8-K | 10.1 | May 11, 2018 | ||||
8-K | 10.2 | May 11, 2018 | ||||
8-K | 10.3 | May 11, 2018 | ||||
8-K | 10.4 | May 11, 2018 | ||||
8-K | 10.1 | February 18, 2020 | ||||
8-K | 10.5 | May 11, 2018 | ||||
8-K | 10.6 | May 11, 2018 | ||||
8-K | 10.7 | May 11, 2018 | ||||
8-K | 10.8 | May 11, 2018 | ||||
8-K | 10.9 | May 11, 2018 | ||||
8-K | 10.10 | May 11, 2018 |
8-K | 10.11 | May 11, 2018 | ||||
8-K | 10.1 | December 20, 2019 | ||||
S-4 | 10.2 | February 11, 2020 | ||||
21.1* | ||||||
23.1* | ||||||
31.1* | ||||||
31.2* | ||||||
32.1** | ||||||
32.2** | ||||||
101.INS* | XBRL Instance Document | |||||
101.SCH* | XBRL Taxonomy Extension Schema Document | |||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||
* Filed herewith | ||||||
** Furnished herewith | ||||||
+ Denotes management contract or compensatory plan or arrangement |