Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 13, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SND | ||
Entity Registrant Name | SMART SAND, INC. | ||
Entity Central Index Key | 1,529,628 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 40,589,641 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 46,563 | $ 3,896 |
Restricted cash | 971 | 0 |
Accounts receivable | 5,339 | 2,020 |
Unbilled receivable | 404 | 4,021 |
Inventories | 10,344 | 5,025 |
Prepaid expenses and other current assets | 1,403 | 1,524 |
Total current assets | 65,024 | 16,486 |
Inventories, long-term | 3,155 | 7,117 |
Property, plant and equipment, net | 104,096 | 108,928 |
Deferred financing costs, net | 1,154 | |
Other assets | 23 | 33 |
Total assets | 173,452 | 132,564 |
Current liabilities: | ||
Accounts payable | 1,663 | 1,170 |
Accrued and other expenses | 2,430 | 3,778 |
Deferred revenue | 1,615 | 7,133 |
Income taxes payable | 7,058 | |
Current portion of equipment financing obligations | 674 | 409 |
Current portion of notes payable | 282 | 1,369 |
Redeemable Series A preferred stock | 34,708 | |
Total current liabilities | 13,722 | 48,567 |
Revolving credit facility, net | 62,768 | |
Equipment financing obligations, net of current portion | 572 | 1,246 |
Notes payable, net of current portion | 288 | 569 |
Deferred tax liabilities, long-term, net | 15,044 | 14,505 |
Asset retirement obligation | 1,384 | 1,180 |
Total liabilities | 31,010 | 128,835 |
Commitments and contingencies (Note 21) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value, 350,000,000 shares authorized; 38,884,068 issued and 38,816,474 outstanding at December 31, 2016; 22,139,480 issued and 22,114,620 outstanding at December 31, 2015 | 39 | 22 |
Treasury stock, at cost, 67,594 shares and 24,860 shares respectively at December 31, 2016 and 2015, respectively | 539 | 123 |
Additional paid-in capital | 132,879 | 4,146 |
Retained earnings (Accumulated deficit) | 10,063 | (316) |
Total stockholders’ equity | 142,442 | 3,729 |
Total liabilities and stockholders’ equity | $ 173,452 | $ 132,564 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 38,884,068 | 22,139,480 |
Common stock, shares outstanding | 38,816,474 | 22,114,620 |
Treasury stock, shares | 67,594 | 24,860 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 59,231 | $ 47,698 | $ 68,170 |
Cost of goods sold | 26,569 | 21,003 | 29,934 |
Gross profit | 32,662 | 26,695 | 38,236 |
Operating expenses: | |||
Salaries, benefits and payroll taxes | 7,385 | 5,055 | 5,088 |
Depreciation and amortization | 384 | 388 | 160 |
Selling, general and administrative | 4,502 | 4,669 | 7,222 |
Total operating expenses | 12,271 | 10,112 | 12,470 |
Operating income | 20,391 | 16,583 | 25,766 |
Other income (expenses): | |||
Preferred stock interest expense | (5,565) | (5,078) | (5,601) |
Other interest expense | (2,862) | (2,748) | (2,231) |
Other income | 8,860 | 362 | 370 |
Total other income (expenses), net | 433 | (7,464) | (7,462) |
Loss on extinguishment of debt | (1,051) | (1,230) | |
Income before income tax expense | 19,773 | 9,119 | 17,074 |
Income tax expense | 9,394 | 4,129 | 9,518 |
Net income | $ 10,379 | $ 4,990 | $ 7,556 |
Net income per common share: | |||
Basic | $ 0.43 | $ 0.23 | $ 0.34 |
Diluted | $ 0.42 | $ 0.19 | $ 0.29 |
Weighted-average number of common shares: | |||
Basic | 24,322,264 | 22,114,400 | 22,039,966 |
Diluted | 24,579,390 | 26,400,000 | 26,242,952 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Beginning balance at Dec. 31, 2013 | $ (9,948) | $ 22 | $ 2,892 | $ (12,862) | |
Beginning balance, shares at Dec. 31, 2013 | 22,017,600 | ||||
Vesting of restricted stock, shares | 22,000 | ||||
Stock-based compensation, inclusive of tax benefit (expense) | 437 | 437 | |||
Restricted stock buy back | (2) | $ (2) | |||
Restricted stock buy back, shares | (220) | 220 | |||
Net income | 7,556 | 7,556 | |||
Ending balance at Dec. 31, 2014 | (1,957) | $ 22 | $ (2) | 3,329 | (5,306) |
Ending balance, shares at Dec. 31, 2014 | 22,039,380 | 220 | |||
Vesting of restricted stock, shares | 99,880 | ||||
Stock-based compensation, inclusive of tax benefit (expense) | 817 | 817 | |||
Restricted stock buy back | (121) | $ (121) | |||
Restricted stock buy back, shares | (24,640) | 24,640 | |||
Net income | 4,990 | 4,990 | |||
Ending balance at Dec. 31, 2015 | 3,729 | $ 22 | $ (123) | 4,146 | (316) |
Ending balance, shares at Dec. 31, 2015 | 22,114,620 | 24,860 | |||
Vesting of restricted stock, shares | 167,090 | ||||
Proceeds from equity issuance, net | 127,302 | $ 13 | 127,289 | ||
Proceeds from equity issuance, net, shares | 12,577,500 | ||||
Exercise of warrants | 22 | $ 4 | 18 | ||
Exercise of warrants, shares | 3,999,998 | ||||
Stock-based compensation, inclusive of tax benefit (expense) | 1,426 | 1,426 | |||
Restricted stock buy back | (416) | $ (416) | |||
Restricted stock buy back, shares | (42,734) | 42,734 | |||
Net income | 10,379 | 10,379 | |||
Ending balance at Dec. 31, 2016 | $ 142,442 | $ 39 | $ (539) | $ 132,879 | $ 10,063 |
Ending balance, shares at Dec. 31, 2016 | 38,816,474 | 67,594 |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||
Stock-based compensation tax benefit | $ 24 | $ 18 | |
Stock-based compensation tax expense | $ 24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income | $ 10,379 | $ 4,990 | $ 7,556 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization of asset retirement obligation | 6,481 | 5,318 | 3,642 |
(Gain) loss on disposal of assets | (59) | 54 | 57 |
Loss on derivatives | 5 | 455 | |
Loss on extinguishment of debt | 1,051 | 1,230 | |
Revenue reserve | (92) | ||
Amortization of deferred financing cost | 159 | 251 | 86 |
Accretion of debt discount | 263 | 519 | 183 |
Deferred income taxes | 539 | 3,700 | 8,378 |
Stock-based compensation, net | 1,426 | 792 | 418 |
Non-cash interest expense on revolving credit facility | 706 | 1,852 | |
Non-cash interest expense on Series A preferred stock | 5,565 | 5,078 | 5,601 |
Changes in assets and liabilities: | |||
Accounts Receivables | (3,319) | 2,629 | (4,367) |
Unbilled Receivables | 3,617 | ||
Inventories | (1,357) | (2,462) | 316 |
Prepaid expenses and other assets | 133 | 2,423 | (3,492) |
Deferred revenue | (5,518) | 7,133 | (183) |
Accounts payable | 761 | (137) | 759 |
Accrued and other expenses | (481) | (654) | 272 |
Income taxes payable | 7,058 | (171) | |
Net cash provided by operating activities | 26,703 | 30,703 | 22,137 |
Investing activities: | |||
Purchases of property, plant and equipment | (2,519) | (29,375) | (30,888) |
Proceeds from disposal of assets | 49 | ||
Net cash used in investing activities | (2,470) | (29,375) | (30,888) |
Financing activities: | |||
Repayment of line of credit | (9,230) | ||
Repayments of notes payable | (1,368) | (456) | (139) |
Payments under equipment financing obligations | (409) | (390) | (231) |
Payment of deferred financing and amendment costs | (1,178) | (415) | (659) |
Proceeds from revolving credit facility | 1,100 | 12,800 | 61,199 |
Repayment of revolving credit facility | (65,316) | (9,647) | (3,500) |
Proceeds from equity issuance | 138,371 | ||
Payment of equity transaction costs | (11,047) | ||
Repayment of Series A preferred stock | (40,328) | (39,999) | |
Cash dividend on Series A preferred stock | (4) | (5) | (5) |
Purchase of treasury stock | (416) | (121) | (2) |
Net cash provided by financing activities | 19,405 | 1,766 | 7,434 |
Net increase (decrease) in cash and restricted cash | 43,638 | 3,094 | (1,317) |
Cash and restricted cash at beginning of year | 3,896 | 802 | 2,119 |
Cash and restricted cash at end of year | 47,534 | 3,896 | 802 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 3,369 | 2,270 | 2,782 |
Cash paid for taxes | 933 | (1,093) | 3,542 |
Non-cash investing and financing activities: | |||
Asset retirement obligation | (188) | (614) | 1,544 |
Equipment purchased with debt | 1,982 | 180 | |
Equipment purchased under equipment financing obligations | 2,217 | ||
Capitalized non-cash interest into property, plant and equipment | 132 | 1,808 | 453 |
Debt issuance costs netted against proceeds | 1,414 | ||
Capitalized expenditures in accounts payable and accrued expenses | $ 48 | $ 3,113 | $ 4,386 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business Smart Sand, Inc. and its subsidiaries (collectively, the “Company”) are headquartered in The Woodlands, Texas, and was incorporated in July 2011. The Company is engaged in the excavation, processing and sale of industrial sand, or proppant, for use in hydraulic fracturing operations for the oil and gas industry. The Company completed construction of the first phase of its primary facility in Oakdale, Wisconsin and commenced operations in July 2012. Immaterial Correction The Company discovered that an immaterial correction should be made relating to the amortization of deferred transaction costs associated with the issuance of shares of the Company’s outstanding Redeemable Series A preferred stock (the “Series A Preferred Stock”). The Company has been amortizing the deferred costs into interest expense from the date of issuance to the mandatory redemption date of the Series A Preferred Stock, which was September 13, 2016. In March 2014, the Company redeemed certain Series A Preferred Stock prior to the mandatory redemption date and wrote off a portion of the transaction costs as part of the early redemption. The Company never adjusted the quarterly amortization amount for the portion previously written off. The Company concluded the amounts were immaterial to its 2016 and 2015 interim financial statements in accordance with the guidance in U.S. Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (SAB) No. 99 “Materiality” and SAB No. 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements.” The correction resulted in a decrease to current liabilities by $861 as of December 31, 2015. The correction also resulted in a decrease in interest expense and corresponding increase in net income by $492 and $369 for the years ended December 31, 2015 and 2014, respectively. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying consolidated financial statements (“financial statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. On November 9, 2016, in connection with its Initial Public Offering (“IPO”), the Company’s Second Amended and Restated Certificate of Incorporation became effective to provide for a stock split of all issued and outstanding shares of common stock at a ratio of 2,200 for 1 (the “Stock Split”) and increased the authorized number of shares of common stock to 350,000,000 shares. Owners of fractional shares outstanding after the Stock Split were paid cash for such fractional interests. The effective date of the Stock Split was November 9, 2016. All common stock share amounts disclosed in this Form 10-K reflect the Stock Split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include, but are not limited to, the sand reserves and their impact on calculating the depletion expense under the units-of-production method; the depreciation associated with property and equipment, impairment considerations of those assets; estimated cost of future asset retirement obligations; stock-based compensation; recoverability of deferred tax assets; inventory reserve; collectability of receivables and certain liabilities. Actual results could differ from management’s best estimates as additional information or actual results become available in the future, and those differences could be material. Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, collectability is reasonably assured, and the risk of loss is transferred to the customer. The Company’s sales are generally FCA, payment made at the origination point at the Company’s facility, and title passes as the product is loaded into rail cars hired by the customer. Certain spot-rate customers have shipping terms of FCA, payment made at the destination; the Company recognizes this revenue when the sand is received at the destination. The Company derives its revenue by mining and processing sand that its customers purchase. Its revenues are primarily a function of the price per ton realized and the volumes sold. In some instances, its revenues also include transportation costs it charges its customers, a monthly charge to reserve sand capacity and shortfall payments due from customers for minimum volume commitments. The Company’s transportation revenue fluctuates based on a number of factors, including the volume of product it transports and the distance between its plant and customers. The Company’s reservation and shortfall revenues are based on negotiated contract terms and are recognized when rights of use are expired. The Company sells a limited amount of its products under short-term price agreements or at prevailing market rates. The majority of the Company’s revenues are realized through take-or-pay supply agreements with four customers. The expiration dates of these contracts range from 2019 through 2020.These agreements define, among other commitments, the volume of product that its customers must purchase, the volume of product that the Company must provide, and the price that the Company will charge and that its customers will pay for each ton of contracted product. Prices under these agreements are generally indexed to the Average Cushing Oklahoma WTI Spot Prices and contain provisions allowing for upward adjustment including: (i) annual percentage price increases; or (ii) market factor increases, including a natural gas surcharge and a propane surcharge which are applied if the Average Natural Gas Price or the Average Quarterly Mont Belvieu TX Propane Spot Price, respectively, as listed by the U.S. Energy Information Administration, are above the benchmark set in the contract for the preceding calendar quarter. As a result, the Company’s realized prices may not grow at rates consistent with broader industry pricing. For example, during periods of rapid price growth, its realized prices may grow more slowly than those of competitors, and during periods of price decline, its realized prices may outperform industry averages. With respect to the take-or-pay arrangements, if the customer is not allowed to make up deficiencies, the Company recognizes revenues of the minimum contracted quantity and minimum contract price, assuming payment has been received or is reasonably assured. If deficiencies can be made up, amounts billed and collected in excess of actual sales are recognized as deferred revenues until production is actually taken by the customer or the right to make up deficiencies expires. These agreements generally provide that, if the Company is unable to deliver the contracted minimum volumes, the customer has the right to purchase replacement product from alternative sources, provided that the inability to supply is not the result of an excusable delay, as defined in these agreements. In the event that the price of the replacement product exceeds the contract price and the inability to supply the contracted minimum volume is not the result of an excusable delay, the Company is responsible for the difference. The Company also recognizes revenue on the rental of its leased rail car fleet to customers either under long-term contracts or on an as-used basis. For the years ended December 31, 2016, 2015 and 2014, the Company recognized $5,732, $3,543 and $1,563 of rail car revenue, respectively. At December 31, 2016, 2015 and 2014, the Company recognized $20,902, $10,095 and $0 of revenue relating to minimum required payments under take-or-pay contracts, respectively. At December 31, 2016, 2015 and 2014, the Company recognized $15,041, $1,000 and $0 in reservation revenue, respectively. At December 31, 2016, 2015 and 2014, the Company determined that no amounts related to minimum commitments under customer contracts were due or payable to the Company. Amounts invoiced or received from customers in advance of sand deliveries are recorded as deferred revenue. Accounts and Unbilled Receivables Accounts receivable represents customer transactions that have been invoiced as of the balance sheet date; unbilled receivables represent customer transactions that have not yet been invoiced as of the balance sheet date. Accounts receivable are due within 30 days, or in accordance with terms agreed upon with customers, and are stated at amounts due from customers net of any allowance for doubtful accounts. The Company considers accounts outstanding longer than the payment terms past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the customer’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. Accounts receivables are written off when they are deemed uncollectible, and payments subsequently received on such receivables are credited to bad debt expense. As of December 31, 2016 and 2015, the Company determined no allowance for doubtful accounts was necessary. As of December 31, 2016 and 2015, $0 and $3,875 of unbilled revenue represent transactions included in deferred revenue, respectively. Deferred Revenue The Company receives advance payments from certain customers in order to secure and procure a reliable provision and delivery of product. The Company classifies such advances as current or noncurrent liabilities depending upon the anticipated timing of delivery of the supplied product. Revenue is recognized upon the delivery of the product. The Company may receive an advance payment from a customer, based on the terms of the customer’s long-term contract, for a certain volume of product to be delivered. Revenue is recognized as product is delivered and the deferred revenue is reduced. The deferred revenue balance at December 31, 2016 and 2015 was $1,615 and $7,133, respectively and classified as a current liability in the accompanying consolidated balance sheets. Shipping Shipping revenue is classified as revenue. Revenue generated from shipping was $480, $2,294 and $3,972, respectively, for the years ended December 31, 2016, 2015 and 2014. Shipping costs are classified as cost of goods sold. Shipping costs consist of railway transportation costs to deliver products to customers. Cost of sales generated from shipping was $1,172, $2,257 and $4,246 for the years ended December 31, 2016, 2015 and 2014, respectively. Inventories The Company’s sand inventory consists of raw material (sand that has been excavated but not processed), work-in-progress (sand that has undergone some but not all processing) and finished goods (sand that has been completely processed and is ready for sale). The spare parts inventory consists of critical spare parts. Sand inventory is stated at the lower of cost or net realizable value using the average cost method. For the year ended December 31, 2016 and 2015, respectively, the Company had no write-down of inventory as a result of any lower of cost or market assessment. Costs applied to the inventory include direct excavation costs, processing costs, overhead allocation, depreciation and depletion. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Costs are calculated on a per ton basis and are applied to the stockpiles based on the number of tons in the stockpile. The Company performs quarterly physical inventory measurements to verify the quantity of inventory on hand. Due to variation in sand density and moisture content and production processes utilized to manufacture the Company’s products, physical inventories will not necessarily detect all variances. To mitigate this risk, the Company recognizes a yield adjustment on its inventories. Spare parts inventory is accounted for on a first-in, first-out basis at the lower of cost or net realizable value. Deferred Financing Charges Direct costs incurred in connection with the revolving credit facility have been capitalized and are being amortized using the straight-line method, which approximates the effective interest method, over the life of the debt. Fees attributable to the lender and third parties of $1,178 are presented as components of deferred financing charges since there is no outstanding balance on the revolving credit facility as of December 31, 2016. Deferred financing fees attributable to the lender of $486 are presented as a reduction to the revolving credit facility, net in the non-current liabilities section of the balance sheet as of December 31, 2015. Amortization expense of the deferred financing charges of $159, $251 and $86, and accretion expense of debt discount of $263, $519 and $183 are included in interest expense as of December 31, 2016, 2015 and 2014, respectively. As part of the December 2015 amendment to the revolving credit facility, the Company was required to calculate quarterly permanent reductions to the maximum commitment available under the revolving credit facility. During the year ended December 31, 2016, the Company accelerated amortization of $18 representing a portion of the remaining unamortized balance of debt issuance costs. Refer to Note 9 – Credit Facilities for additional disclosure on the Company’s revolving credit agreement. Financial Instruments The carrying value of the Company’s financial instruments, consisting of cash, accounts receivable, accounts payable and accrued expenses, approximates their fair value due to the short maturity of such instruments. Financial instruments also consist of debt for which fair value approximates carrying values as the debt bears interest at a variable rate which is reflective of current rates otherwise available to the Company. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Costs related to researching, surveying, drilling, and related activities are recorded at cost and capitalized once a determination has been made that the Company’s property has proven and probable reserves. Capitalized mining costs are depleted using the units-of-production method. Construction in progress is primarily comprised of machinery and equipment which has not been placed in service and is not depreciated until the related assets or improvements are ready to be placed in service. Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment, which are: Years Land improvements 10 Plant and buildings 5-15 Real estate properties 10-40 Rail spur 30 Vehicles 3-5 Machinery, equipment and tooling 3-15 Furniture and fixtures 3-10 Deferred mining costs 3 Expenditures for maintenance and repairs are charged against income as incurred; betterments that increase the value or materially extend the life of the related assets are capitalized. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is recognized in the consolidated income statements. Fair Value Measurements The Company’s financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, of which the first two are considered observable and the last unobservable, which are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs that reflect the Company’s assumptions that market participants would use in pricing assets or liabilities based on the best information available. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”) - 718, Compensation—Stock Compensation (“ASC 718”), which requires the recognition of expense related to the fair value of stock-based compensation awards in the Statements of Operations. For restricted stock issued to employees and members of the board of directors of the Company (the “Board”) for their services on the Board, the Company estimates the grant date fair value of each share of restricted stock at issuance. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense, net of estimated forfeitures, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using the straight-line recognition method when it is probable that the performance condition will be achieved. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Share-based payments issued to non-employees are recorded at their fair values, and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. Prior to the Company’s initial public offering, the grant date fair value was calculated based on a weighted analysis of (i) publicly-traded companies in similar line of business to the Company (market comparable method)—Level 2 inputs, and (ii) discounted cash flows of the Company—Level 3 inputs. Once the Company’s shares became publicly traded on November 4, 2016, the Company began to use the actual market price of its shares as the grant date fair value for restricted stock awards. Income Taxes The Company applies the provisions of ASC Topic 740, Income Taxes (“ASC 740”), which principally utilizes a balance sheet approach to provide for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of net operating loss carryforwards and temporary differences between the carrying amounts and the tax bases of assets and liabilities. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The impact of an uncertain income tax position on the income tax returns must be recognized at the largest amount that is more-likely-than-not to be required to be recognized upon audit by the relevant taxing authority. This standard also provides guidance on de-recognition, measurement, classification, interest and penalties, accounting for interim periods, disclosure and transition issues with respect to tax positions. The Company includes interest and penalties as a component of income tax expense in the consolidated statement of operations. For the periods presented, no interest and penalties were recorded. Environmental Matters The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Company’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed as incurred. Liabilities are recorded when environmental costs are probable, and the costs can be reasonably estimated. The Company maintains insurance which may cover in whole or in part certain environmental expenditures. As of December 31, 2016 and 2015, there were no probable environmental matters. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income was equal to net income for all periods presented. Segment Information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one operating segment. All long-lived assets of the Company reside in the United States. Basic and Diluted Net Income Per Share of Common Stock Basic net income per share of common stock is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding the dilutive effects of Series A Preferred Stock, warrants to purchase common stock and restricted stock. Diluted net income per share of common stock is computed by dividing the net income attributable to common stockholders by the sum of the weighted-average number of shares of common stock outstanding during the period plus the potential dilutive effects of Series A Preferred Stock and warrants to purchase common stock, and restricted stock outstanding during the period calculated in accordance with the treasury stock method, although these shares, restricted stock and warrants are excluded if their effect is anti-dilutive. The following table reconciles the weighted-average common shares outstanding used in the calculation of basic net income per share to the weighted average common shares outstanding used in the calculation of diluted net income per share: Year Ended December 31, 2016 2015 2014 Determination of Shares Weighted average common shares outstanding 24,322,264 22,114,400 22,039,966 Assumed conversion of warrant — 3,999,998 3,999,998 Assumed conversion of restricted stock 257,126 285,602 202,988 Diluted weighted average common stock outstanding 24,579,390 26,400,000 26,242,952 Reclassification Certain 2015 financial statement items have been reclassified to conform to the current financial statement presentation. These reclassifications have no effect on previous reported net income. Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The guidance is effective for the Company beginning after December 15, 2017, although early adoption is permitted. The Company is currently evaluating the effects of ASU 2016-15 on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The amendments in ASU 2016-12 provide clarifying guidance in certain narrow areas and add some practical expedients. Specifically, the amendments in this update (1) clarify the objective of the collectability criterion in step 1, and provides additional clarification for when to recognize revenue for a contract that fails step 1, (2) permit an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price (3) specify that the measurement date for noncash consideration is contract inception, and clarifies that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration, (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations, (5) clarifies that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Further, accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts, and (6) clarifies that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The guidance is effective for the Company beginning January 1, 2018, although early adoption is permitted beginning January 1, 2017. Although the Company is still in the process of assessing the impact of the adoption of ASU 2014-09, it does not currently anticipate a material impact on its financial statements. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. ASU 2016-11 rescinds several SEC Staff Announcements that are codified in Topic 605, including, among other items, guidance relating to accounting for shipping and handling fees and freight services. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The guidance is effective for the Company beginning January 1, 2018, although early adoption is permitted beginning January 1, 2017. The Company is currently evaluating the effects of ASU 2016-11 on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”). The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The guidance is effective for the Company beginning January 1, 2018, although early adoption is permitted beginning January 1, 2017. The Company is currently evaluating the effects of ASU 2016-10 on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “Stock Compensation (ASC 718)—Improvements to Employee Share-Based Payment Accounting”, which is intended to simplify the tax accounting impacts of stock compensation. Additionally, the new standard provides accounting policy elections regarding vesting and forfeiture accounting. The new standard is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has elected to early adopt this standard. It elected to account for forfeitures when they occur. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (ASC 842), which replaces the existing guidance in ASC 840, “Leases.” ASC 842 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. The new lease standard does not substantially change lessor accounting. The new standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes—Balance Sheet Classification of Deferred Taxes”, which requires the presentation of deferred tax liabilities and assets be classified as non-current on balance sheets. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. We have elected to early adopt this guidance prospectively as of December 31, 2015. The adoption only impacted deferred tax presentation on the consolidated balance sheet and related disclosure. No prior periods were retrospectively adjusted. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”, which requires an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new standard is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company has elected to prospectively early adopt the standard effective December 31, 2016 and has measured its inventory at the lower of cost or net realizable value. The impacts on the early adoption of ASU 2015-11 are not significant. In April 2015, the FASB issued ASU No. 2015-15, “Interest-Imputation of Interest”, which simplifies presentation of debt issuance costs. The new standard requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The new standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Since there is no outstanding balance under the revolving credit facility as of December 31, 2016, the Company has classified such debt issuance costs as non-current assets. The Company has presented such debt issuance costs as a reduction from its revolving credit facility as of December 31, 2015. In August 2014, the FASB issued ASU No. 2014-15, “Going Concern”, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. Accordingly, the Company incorporated this guidance into its internal control over financial reporting beginning with this Annual Report on Form 10-K for the year ended December 31, 2016. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is only permitted as of annual reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated financial statements nor decided upon the method of adoption. Although the Company is still in the process of assessing the impact of the adoption of ASU 2014-09, it does not currently anticipate a material impact on its financial statements. |
Cash and Restricted Cash
Cash and Restricted Cash | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Restricted Cash | 4. Cash and Restricted Cash Cash Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits of $250 thousand at each financial institution. The Company has not experienced any losses related to these balances. Cash at December 31, 2016 and 2015, was $46,563 and $3,896, respectively. Restricted Cash Restricted cash related to the Company represents cash held as collateral relating to an outstanding short-term bond assuring performance under a fuel agreement with a pipeline common carrier. As of December 31, 2016 and 2015, we had $971 and $0 respectively, of restricted cash. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories consisted of the following: December 31, 2016 2015 Raw material $ 229 $ 3 Work in progress 12,758 11,096 Finished goods 451 1,021 Spare parts 61 22 Total inventory 13,499 12,142 Less: current portion 10,344 5,025 Total inventory, net of current portion $ 3,155 $ 7,117 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets comprised of the following: December 31, 2016 2015 Prepaid insurance $ 514 $ 100 Prepaid expenses 861 533 Prepaid income taxes — 888 Other receivables 28 3 Total prepaid expenses and other current assets $ 1,403 $ 1,524 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, net | 7. Property, Plant and Equipment, net Net property, plant and equipment consists of: December 31, 2016 2015 Machinery, equipment and tooling $ 4,841 $ 4,673 Vehicles 953 952 Furniture and fixtures 305 303 Plant and building 64,390 64,001 Real estate properties 3,503 3,500 Railroad and sidings 7,927 7,868 Land and improvements 13,317 12,977 Asset retirement obligation 1,324 1,135 Mineral properties 9,785 9,785 Deferred mining costs 417 155 Construction in progress 16,715 16,637 123,477 121,986 Less: accumulated depreciation and depletion 19,381 13,058 Total property, plant and equipment, net $ 104,096 $ 108,928 Depreciation expense was $6,441, $5,276 and $3,611 for the years ended December 31, 2016, 2015 and 2014, respectively. Depletion expense was $3, $13 and $14 for the years ended December 31, 2016, 2015 and 2014, respectively. The Company capitalized $132, $1,808 and $453 of interest expense associated with the construction of new plant and equipment for the years ended December 31, 2016, 2015 and 2014, respectively. |
Accrued and Other Expenses
Accrued and Other Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued and Other Expenses | 8. Accrued and Other Expenses Accrued and other expenses were comprised of the following: December 31, 2016 2015 Employee related expenses $ 955 $ 216 Accrued construction 19 917 Accrued legal expenses 22 99 Accrued professional fees 350 139 Accrued freight and delivery charges 383 162 Accrued revolving credit facility interest — 701 Derivative Liability — 455 Other accrued liabilities 701 1,089 Total accrued liabilities $ 2,430 $ 3,778 From time to time, the Company enters into fixed-price purchase obligations to purchase propane or natural gas (which are used in its production operations). The contracts specify the quantity of propane or natural gas to be delivered over a specified period of time and at a specified fixed price. The Company has historically concluded that these obligations are precluded from recognition in its consolidated financial statements in accordance with the normal sales and normal purchases exclusion as provided in ASC 815 “Derivatives and Hedging”. However, as the Company did not take physical delivery under a fixed-price propane agreement entered into during 2015, the Company accounted for this agreement under derivative accounting. As of December 31, 2015 the liability for this agreement was marked to market and was settled in February 2016 for $460. The settlement is presented as part of the change in accrued and other expenses in operating activities on the consolidated statement of cash flows. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facilities | 9. Credit Facilities On March 28, 2014, the Company entered into a $72,500 revolving credit and security agreement (“the Credit Agreement”) with PNC Bank National Association as administrative agent and collateral agent. The Credit Agreement provided for a $72,500 variable rate senior secured revolving credit facility (“former revolving credit facility”) which was available to repay a $40,000 portion of the outstanding Series A Preferred Stock (Note 13) and the outstanding balance of a previous line of credit. In addition, the former revolving credit facility was available to fund fees and expenses totaling $1,675 incurred in connection with the Credit Agreement, and for general business purposes, including working capital requirements, capital expenditures, and permitted acquisitions. The Credit Agreement included a sublimit of up to $5,000 for the issuance of letters of credit. Substantially all of the assets of the Company were pledged as collateral under the Credit Agreement. The former revolving credit facility had a maturity date of March 28, 2019. The Company also incurred certain commitment fees on committed amounts that were neither used for borrowings nor under letters of credit. On December 18, 2015, the Company entered into the fourth amendment to the Credit Agreement (“Fourth Amendment”). Under the Fourth Amendment, an event of default related to the September 30, 2015 leverage ratio was waived, the total commitment was adjusted to $75,000, required quarterly paydowns were implemented and certain covenants were amended. The Company incurred a $250 commitment fee for this amendment, recorded as debt discount related to the former revolving credit facility. On November 9, 2016, the former revolving credit facility under the Credit Agreement was paid in full and terminated using a portion of the proceeds from our IPO. On December 8, 2016, the Company entered into a $45 million three-year senior secured Revolving Credit Facility (the “Facility”) with Jefferies Finance LLC as administrative and collateral agent. Substantially all of the assets of the Company are pledged as collateral under the Facility. The Facility expires on December 8, 2019 and has the following terms and conditions (the “New Credit Agreement”): Letters of Credit: A portion of the Facility, not in excess of $10 million, is available for the issuance of letters of credit to be issued by the administrative agent or any other lender approved by the administrative agent and the Company that is willing to become a letter of credit issuer. A per annum fee equal to the interest rate margin for LIBOR loans under the Facility will be payable to the lenders (other than a defaulting lender (as defined in the New Credit Agreement) which has not provided cash collateral for its pro rata share of any letter of credit exposure) and accrue on the aggregate undrawn face amount of outstanding letters of credit under the facility, payable in arrears at the end of each quarter and on the date the commitments under the Facility are terminated, calculated based upon the actual number of days elapsed over a 360-day year. Additionally a fronting fee equal to 0.25% per annum will be payable to the applicable letter of credit issuer payable on the aggregate undrawn face amount of outstanding letters of credit issued by such issuer under the facility, payable in arrears at the end of each quarter and on the date the commitments under the Facility are terminated, calculated based upon the actual numbers of days elapsed over a 360-day year. Commitment Fees: The Company will pay each lender under the Facility (other than a defaulting lender (as defined in the New Credit Agreement)) a commitment fee of 0.375% per annum on the average daily unused portion of the Facility, payable in arrears at the end of each quarter and on the date the commitments under the Facility are terminated, calculated based upon the actual number of days elapsed over a 360-day year. Interest Rates: The interest rates under the Facility will be based on the leverage ratio (as defined in the New Credit Agreement) for the most recently ended fiscal quarter. Interest will be payable in arrears (a) for loans accruing interest at a rate based on LIBOR (plus an applicable margin ranging from 3.00% - 4.00%, depending on the leverage ratio), at the end of each interest period and, for interest periods of greater than three months, every three months, and on the maturity date of the Facility and (b) for loans accruing interest based on the ABR (plus an applicable margin ranging from 2.00% - 3.00%, depending on the leverage ratio), quarterly in arrears and on the maturity date of the Facility. Default Rate: Upon the occurrence and during the continuance of any payment event of default, with respect to overdue principal and interest, the applicable interest rate plus 2.00% per annum, and with respect to overdue fees, the interest rate applicable to ABR loans plus 2.00% per annum and in each case will be payable on demand. The Facility contains various reporting requirements, negative covenants, restrictive provisions and requires maintenance of financial covenants, including a fixed charge coverage ratio and a leverage ratio (each as defined in the New Credit Agreement). As of December 31, 2016, no amounts were outstanding under the Facility and the Company was in compliance with all covenants. |
Equipment Lease Obligations
Equipment Lease Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Equipment Lease Obligations | 10. Equipment Lease Obligations The Company entered into various arrangements to finance equipment. Accordingly, the equipment with a cost of $2,853 has been capitalized and included in the Company’s property, plant and equipment. Depreciation expense for assets under equipment leases was $293, $293 and $245 for the years ended December 31, 2016, 2015 and 2014, respectively. Accumulated depreciation for assets under equipment leases was $757 and $464 as of December 31, 2016 and 2015, respectively. Future minimum lease payments for equipment lease obligations as of December 31, 2016 are as follows: Year Ended December 31, Amount 2017 $ 721 2018 589 Total minimum lease payments 1,310 Amount representing interest at 0% - 5% (64 ) Present value of payments 1,246 Less: current portion (674 ) Total equipment financing obligations, net of current portion $ 572 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | 11. Notes Payable The Company financed certain equipment and automobile purchases by entering into various debt agreements. Interest rates on these notes ranged from 0% to 4.75%. Aggregate maturities of notes payable are as follows: December 31, Amount 2017 $ 282 2018 288 Total 570 Less: current portion (282 ) Total notes payable, net current portion $ 288 |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | 12. Asset Retirement Obligation The Company had recorded a post-closure reclamation and site restoration obligation of $1,384 at December 31, 2016. The following is a reconciliation of the total reclamation liability for asset retirement obligations. Balance at December 31, 2014 $ 1,765 Additions to liabilities 105 Reductions to liabilities due to revision of estimates (719 ) Accretion expenses 29 Balance at December 31, 2015 1,180 Additions to liabilities 399 Reductions to liabilities due to revision of estimates (211 ) Accretion expenses 16 Balance at December 31, 2016 $ 1,384 |
Mandatorily Redeemable Series A
Mandatorily Redeemable Series A Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Mandatorily Redeemable Series A Preferred Stock | 13. Mandatorily Redeemable Series A Preferred Stock On September 13, 2011, the Company entered into a financing agreement with an investor (the “Series A Investor”). The agreement provided for the sale of Series A Preferred Stock (“Series A Preferred Stock”) to the Series A Investor in multiple tranches. As part of this agreement, the Series A Investor received 22,000 shares of Series A Preferred Stock with an issuance price of $1,000 per share as well as 14,300,000 shares of common stock in exchange for gross proceeds of $22,000 in September 2011. The second tranche of 26,000 shares of Series A Preferred Stock was issued in January 2012, in exchange for gross proceeds of $26,000. The Company originally authorized 200,000 shares of Series A Preferred Stock. Effective July 1, 2013, the Company reduced the number of shares of authorized Series A Preferred Stock to 100,000. The holders of the shares of Series A Preferred Stock were not entitled to vote, but were entitled to elect four of the seven directors to the Board. In the event of liquidation, after provision for payment of all debts and liabilities of the Company, the holders of the Series A Preferred Stock, before any payment to the holders of common stock, would have been entitled to receive the original issuance price per share, for all outstanding Series A Preferred Stock plus any unpaid accrued dividends. If upon any such liquidation event the assets of the Company available for distribution to its stockholders were insufficient to pay the holders of shares of Series A Preferred Stock the full amount to which they were entitled, the holders of Series A Preferred Stock would share ratably in any distribution of the assets available for distribution in proportion to the respective amounts to which they were respectively entitled. Dividends accrued and accumulated on the Series A Preferred Stock, whether or not earned or declared, at the rate of 15% per annum and compound quarterly on April 1, July 1, October 1 and January 1. Dividends were paid in-kind with additional Series A Preferred Stock; fractional share portions of calculated dividends were paid in cash. In-kind dividends are accounted for as interest expense and were accrued as part of the long-term liability in the consolidated balance sheets. The Company issued 4,776, 4,865 and 4,218 Series A Preferred Stock for dividends in December 31, 2016, 2015 and 2014, respectively. The Company incurred $5,624, $5,652 and $5,965 of interest expense related to the Series A Preferred Stock for the years ending December 31, 2016, 2015 and 2014, respectively. Of this expense $59, $574 and $364 was capitalized into property, plant and equipment in the consolidated balance sheet at December 31, 2016, 2015 and 2014, respectively. The Series A Preferred Stock were mandatorily redeemable on September 13, 2016 only if certain defined pro forma covenants of the Credit Agreement (Note 9) were met. The shares of Series A Preferred Stock were not convertible into common stock or any other security issued by the Company. As a result of the Series A Preferred Stock’s mandatory redemption feature, the Company classified these securities as current liabilities in the accompanying consolidated balance sheets as of December 31, 2015. The Company incurred $1,698 of transaction costs in connection with the issuance of the first tranche of the Preferred Shares. The transaction costs and the allocation of value to the common shares (see Note 14) have been recorded as a reduction of the carrying amount of the Preferred Shares liability. The Company incurred $1,639 of transaction costs in connection with the issuance of the second tranche of the Preferred Shares. The Preferred Shares liability will be accreted to the face value with a corresponding charge to interest expense over the remaining term of the Preferred Shares to present the face value of the Preferred Shares mandatory redemption date value on September 13, 2016. At December 31, 2016 and 2015, the Series A Redeemable Preferred Stock consisted of: Balance at December 31, 2014 $ 29,059 Accumulated dividends 4,865 Net accretion of issuance & transaction costs 784 Balance at December 31, 2015 34,708 Accumulated dividends $ 4,776 Net accretion of issuance & transaction costs 845 Payoff of Series A Preferred Stock (40,329 ) Balance at December 31, 2016 $ — On November 9, 2016, the Series A Preferred Stock was fully redeemed at a total redemption value of $40,329 using a portion of the proceeds from the IPO. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common Stock | 14. Common Stock The holder of the Series A Preferred Stock was issued 14,300,000 shares of common stock for no cash consideration in 2011. As a result and in order to recognize the value of the common stock issued, $1,179 was bifurcated from the proceeds of the Series A Preferred Stock and allocated to the 14,300,000 shares of common stock received by the Series A Investor. The Company used a current value method to determine the fair value of the shares at the issuance date since the company was at such an early stage of development that no material progress had been made to the Company’s business plan. As discussed in Note 13, the amount allocated to the Series A Investor’s common shares was accreted to the face value of the Series A Preferred Stock with a corresponding charge to interest expense over the 5-year term of the Series A Preferred Stock. Certain management stockholders pledged 5,896,000 shares of common stock as a guarantee of performance on the Series A Preferred Stock (Note 13). Upon full redemption of the Series A Preferred Stock on November 9, 2016, this pledge was released. As disclosed in Note 2 – Basis of Presentation, on November 9, 2016, the Second Amended and Restated Certificate of Incorporation of the Company became effective and, among other things: • provided for a 2,200 for 1 stock split; • increased the authorized number of shares of common stock to 350,000,000 shares; • authorized 10,000,000 shares of undesignated preferred stock that may be used from time to time by the Company’s board of directors in one or more series. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Warrants | 15. Warrants Contemporaneous with the financing transaction in 2011 described in Note 13, the Company issued certain management stockholders warrants to purchase 3,999,998 shares of common stock for a purchase price of $0.0045 per share. The warrants were scheduled to expire 8 years after issuance. The warrants were exercisable upon the achievement of certain triggering events, as defined in the warrant agreements. During the year ended December 31, 2016, management determined that certain performance criteria for the warrants were more likely than not to be met and therefore $348 of total expense was recognized during the year, inclusive of any accelerated expense. This amount has been reflected as an additional component of stock-based compensation expense for the year ended December 31, 2016. No expense was recorded for the years ended December 31, 2015 and 2014. On December 2, 2016, a triggering event, as defined in the warrant agreement had been achieved. The Company had been recognizing expense on these warrants over the expected timeframe until a triggering event, but has accelerated recognition of the remaining $255 of warrant expense through the trigger date. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation In May 2012, the Board approved the 2012 Equity Incentive Plan (“2012 Plan”), which provides for the issuance of Awards (as defined in the 2012 Plan) of up to a maximum of 440,000 shares of the Company’s common stock to employees, non-employee members of the Board, and consultants of the Company. During 2014, the 2012 Plan was amended to provide for the issuance of Awards up to 880,000 shares of the Company’s common stock. The awards could be issued in the form of incentive stock options, non-qualified stock options or restricted stock, and have expiration dates of 5 or 10 years after issuance, depending whether the recipient already holds above 10% of the voting power of all classes of the Company’s shares. The exercise price was based on the fair market value of the share on the date of issuance; vesting periods were determined by the board upon issuance of the Award. During 2016, 2015 and 2014, 160,600, 44,000 and 338,800 shares of restricted stock were issued under the 2012 Plan, respectively. The grant date fair value of all the restricted stock per share was $1.89—$8.06. The shares vest over two to five years from their respective grant dates. The grant date fair value was calculated based on a weighted analysis of (i) publicly-traded companies in a similar line of business to the Company (market comparable method)—Level 2 inputs, and (ii) discounted cash flows of the Company—Level 3 inputs. The Company recognized $1,072, $793 and $419 of compensation expense for the restricted stock during 2016, 2015 and 2014, respectively, in operating expenses on the consolidated income statements. At December 31, 2016 the Company had unrecognized compensation expense of $1,347. That expense is expected to be recognized as follows: Year Ending December 31, 2017 $ 608 2018 508 2019 214 2020 17 $ 1,347 The following table summarizes restricted stock activity under the Plan from January 1, 2015 through December 31, 2016: Number of Shares Weighted Average Unvested, January 1,2015 370,407 $ 7.89 Granted 44,000 8.06 Vested (98,450 ) (7.61 ) Forfeiture (26,400 ) (7.75 ) Unvested, December 31,2015 289,557 $ 8.02 Granted 160,600 3.85 Vested (167,090 ) (6.79 ) Forfeiture (9,900 ) (6.00 ) Unvested, December 31, 2016 273,167 $ 7.35 In December 2016, 77,000 shares of performance-based restricted stock vested. The Company had been recognizing compensation expense on these performance-based restricted stock over the expected timeframe until a performance condition was satisfied, but has accelerated recognition of the remaining $242 compensation expense through the date such a condition was satisfied. In connection with the Company’s initial public offering, the Company adopted a 2016 Omnibus Incentive Plan. The Company has not made any grants under the 2016 Omnibus Incentive Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes The provision for income taxes consists of the following: Year Ended December 31, 2016 2015 2014 Current Federal $ 8,337 $ 245 $ 820 State and local 518 184 320 Total current expense 8,855 429 1,140 Deferred Federal 537 3,610 8,198 State and local 2 90 180 Total deferred income tax expense 539 3,700 8,378 Total income tax expense $ 9,394 $ 4,129 $ 9,518 Income tax expense related to operations differs from the amounts computed by applying the statutory income tax rate of 35% to pretax income as follows: Year Ended December 31, 2016 2015 2014 At statutory rate $ 6,921 $ 3,192 $ 5,976 Non-deductible interest expense 1,948 1,777 2,136 State taxes, net of US federal benefit 339 211 393 Federal tax deductions (648 ) (19 ) (19 ) Change in applicable tax rate — — 308 Costs associated with possible restructuring — (940 ) 913 Provision to return permanent difference 933 (68 ) (96 ) Other (99 ) (24 ) (93 ) Total income tax expense $ 9,394 $ 4,129 $ 9,518 Deferred income taxes reflect the net tax effects of loss and credit carry-forwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows: Year Ended December 31, 2016 2015 Deferred tax assets: Reserves and accruals $ 568 $ 537 Total gross deferred tax assets 568 537 Deferred tax liabilities: Prepaid expenses and other (132 ) 122 Depreciation and amortization (15,480 ) (15,164 ) Total gross deferred tax liabilities (15,612 ) (15,042 ) Less: current net deferred tax assets — — Noncurrent deferred tax liabilities, net $ (15,044 ) $ (14,505 ) In assessing the realizability of deferred tax assets, the Company considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. At December 31, 2016 and 2015, based on the Company’s future income projections, management determined it was more likely than not that the Company will be able to realize the benefits of the deductible temporary differences. As of December 31, 2016 and 2015, the Company determined no valuation allowance was necessary. The Company has no state net operating losses as of December 31, 2016, 2015 and 2014, respectively. The Company has evaluated its tax positions taken as of December 31, 2016 and 2015 and believes all positions taken would be upheld under examination from income taxing authorities. Therefore, no liability for the effects of uncertain tax positions has been recorded in the accompanying consolidated balance sheets as of December 31, 2016 or 2015. The Company is open to examination by taxing authorities since incorporation. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Plan | 18. 401(k) Plan The Company has a defined contribution plan that covers all employees over the age of 21 who have been employed for at least 90 days. The plan is subject to the provisions of the Employee Retirement Income Security Act of 1974. In accordance with the provisions of the plan, the Company may make discretionary contribution to the account of each participant. During the years ended December 31, 2016, 2015 and 2014, the Company made contributions of $248, $181 and $121, respectively. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Concentrations | 19. Concentrations As of December 31, 2016 and 2015, three customers accounted for 92% and three customers accounted for 96% of the Company’s total accounts receivable, respectively. During the years ended December 31, 2016, 2015 and 2014, 96%, 94% and 79% of our revenues were earned from four customers, four customers and three customers, respectively. As of December 31, 2016 and 2015, one vendor accounted for 35% and three vendors accounted for 71% of the Company’s accounts payable, respectively. For the years ended December 31, 2016, 2015 and 2014, two suppliers, four suppliers and three suppliers accounted for 32%, 33% and 45% of the Company’s cost of goods sold, respectively. The Company’s inventory and operations are located in Wisconsin. There is a risk of loss if there are significant environmental, legal or economic changes to this geographic area. The Company currently primarily utilizes one third-party rail company to ship its products to customers from its plant. There is a risk of business loss if there are significant impacts to this third party’s operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. Related Party Transactions In January 2016, the Company provided a one-year, 0% loan to its Chief Executive Officer in the amount of $61. This loan was fully forgiven and included as compensation in September 2016. During 2016, 2015 and 2014, the Company reimbursed the Series A Investor $42, $27 and $130, respectively, for certain out-of-pocket and other expenses in connection with certain management and administrative support services provided. During 2016, 2015 and 2014, the Company expensed $0, $0 and $104, respectively, for services under consulting agreements from relatives of certain Company stockholders. During 2014, the Company purchased vehicles from certain Company stockholders and upper management for $45. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies Leases The Company is obligated under certain operating leases and rental agreements for railroad cars, office space, and other equipment. Future minimum annual commitments under such operating leases at December 31, 2016 are as follows: Twelve months ending December 31, 2017 $ 6,576 2018 5,173 2019 4,052 2020 3,038 2021 2,247 Thereafter 338 Expense related to operating leases and rental agreements was $7,065, $4,098 and $2,530 for the years ended December 31, 2016, 2015 and 2014, respectively. Lease expense related to rail cars are included in cost of goods sold in the consolidated statement of operations. Litigation The Company is periodically involved in litigation and claims incidental to its operation. Other than the below, management believes that any pending litigation will not have a material impact the Company’s financial position. In August 2016, an affiliate of one of the Company’s customers, in conjunction with bankruptcy proceedings, demanded a refund of the remaining balance of prepayments it claimed to have made pursuant to the agreement with the Company’s customer. In November 2016, this was settled favorably for the Company; accordingly, the full amount of the prepayment was recognized as revenue. As part of this settlement, the Company was granted an unsecured bankruptcy claim of approximately $12 million; in December 2016, a third party purchased the Company’s unsecured claim for approximately $6.6 million which was recognized in other income in the fourth quarter. Employment Agreements Certain of the Company’s executives are employed under employment agreements, the terms of which provide for, among other things, a base salary plus additional compensation including an annual bonus based on the percentage as defined and agreed upon by the Board based on service and/or performance in a given calendar year. The agreements, which contain one-year automatic renewals, provide for benefits that are customary for senior-level employees. The Company is required to pay severance under these agreements under certain conditions, as defined, in the event employment of these key executives is terminated. The Company’s commitment under these agreements is $1,175 as of December 31, 2016. The agreements are scheduled to expire through May 2017. Consulting Agreements On August 1, 2010, the Company entered into a consulting agreement related to the purchase of land with a third party. The third party acted as an agent for the Company to obtain options to purchase certain identified real property in Wisconsin, as well as obtain permits and approvals necessary to open, construct and operate a sand mining and processing facility on such real property. The agreement continues for two years after the closing of one or more of the identified real properties. The third party’s compensation consists of $10 per month through the end of the agreement, reimbursement of expenses, and $1 per each acre purchased as a closing fee. In 2016, 2015 and 2014, the Company paid the third party $0, $841 and $206, respectively, in consulting fees, expense reimbursements and closing costs. These costs have been capitalized in property and equipment in the accompanying consolidated balance sheets as they relate to the acquisition of land. In addition to the aforementioned fees, the consulting agreement provides for tonnage fees based upon mining operations. The payment of $0.50 per sold ton of certain grades of sand that were mined and sold from the properties acquired under the consulting agreement begins with the second year of operations of the plant and continues indefinitely. The minimum annual tonnage fee is $200 per contract year, which runs from August 1 to July 31. During the years ended December 31, 2016, 2015 and 2014, the Company incurred $258, $252 and $332, respectively, related to tonnage fees. Bonds The Company entered into performance bonds with Jackson County, Wisconsin and Monroe County, Wisconsin for $4,400 and $900, respectively. The Company provided these performance bonds to assure performance under the reclamation plan filed with each respective county. The Company entered into a $1,000 permit bond with the Town of Curran, Wisconsin to use certain town roadways. The Company provided this permit bond to assure maintenance and restoration of the roadway. The Company has an outstanding $1,943 bond to assure performance under its fuel agreement with a pipeline common carrier. As of December 31, 2016, $971 of cash is being held as collateral related to the bond and is presented as restricted cash on the balance sheet. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 22. Quarterly Financial Data (Unaudited) The following table sets forth our unaudited quarterly consolidated statements of operations for each of the last four quarters for the periods ended December 31, 2016 and 2015. This unaudited quarterly information has been prepared on the same basis as our annual audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that are necessary to present fairly the financial information for the fiscal quarters presented. 2016: First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 10,359 $ 8,494 $ 10,927 $ 29,451 Cost of goods sold 5,337 6,531 5,931 8,770 Operating expenses 2,188 2,214 2,461 5,408 Net income (loss) 382 (2,349 ) (95 ) 12,441 Earnings per share, basic 0.02 (0.11 ) — 0.40 Earnings per share, diluted 0.01 (0.11 ) — 0.40 Weighted average number of shares outstanding, basic 22,135 22,169 22,189 30,952 Weighted average number of shares outstanding, diluted 26,410 22,169 22,189 31,210 2015: First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 13,071 $ 10,437 $ 9,025 $ 15,165 Cost of goods sold 7,804 4,467 4,865 3,867 Operating expenses 2,739 2,805 2,314 2,254 Net income (loss) 203 726 1,796 2,265 Earnings per share, basic 0.01 0.03 0.08 0.10 Earnings per share, diluted 0.01 0.03 0.07 0.09 Weighted average number of shares outstanding, basic 22,039 22,092 22,112 22,114 Weighted average number of shares outstanding, diluted 26,411 26,410 26,388 26,400 During the fourth quarter 2016, the Company recognized approximately $1,908 of year-end performance-based bonus expense included in cost of goods sold and operating expenses in the consolidated statement of operations. Such bonus expenses were recognized only in the fourth quarter rather than ratably over each quarter in 2016 as the Company’s board of directors did not approve a bonus plan until the fourth quarter. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. Subsequent Events The Company has evaluated events and transactions subsequent to the consolidated balance sheet date and through March 16, 2017, the date the consolidated financial statements were available to be issued. Based on this evaluation, the Company is not aware of any events or transactions that occurred subsequent to December 31, 2016 through March 16, 2017 that would require recognition or disclosure in the consolidated financial statements. On January 30, 2017, the Company announced its decision, based on its assessment of increased demand for its products, particularly fine mesh sand, to increase the wet and dry plant processing capacity at its Oakdale facility in order to produce up to approximately 4.4 million tons of raw frac sand per year. The Company also decided to expand rail and logistics infrastructure in Wisconsin to support this potential increase in customer demand. On February 1, 2017, the Company entered into an Underwriting Agreement by and among the Company, the Selling Shareholders named therein and Credit Suisse Securities LLC and Goldman, Sachs & Co., as representatives of the several underwriters (the “Underwriters”), providing for the offer and sale and the purchase by the Underwriters, of 5,950,000 shares of the Company’s common stock, $0.001 par value at a price to the public of $17.50 per share ($16.58125 per share, net of the underwriting discount), of which 1,500,000 shares are to be sold by the Company and 4,450,000 shares are to be sold by Selling Shareholders. On February 10, 2017, the underwriters exercised in full their option to purchase additional shares of common stock from the Selling Shareholders. On February 15, 2017, the Selling Shareholders consummated the sale of 892,500 shares of common stock to the underwriters pursuant to the underwriters’ exercise of their over-allotment option at a price of $17.50 per share. We received no proceeds from the sale of common stock to the underwriters by the Selling Shareholders. On March 8, 2017, the Company entered into a multi-year Master Product Purchase Agreement (the “PPA”) with Liberty Oilfield Services, LLC (the “Buyer”). We expect that the Buyer will begin purchasing frac sand under the PPA in May 2017. The PPA is structured as a take-or-pay agreement. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include, but are not limited to, the sand reserves and their impact on calculating the depletion expense under the units-of-production method; the depreciation associated with property and equipment, impairment considerations of those assets; estimated cost of future asset retirement obligations; stock-based compensation; recoverability of deferred tax assets; inventory reserve; collectability of receivables and certain liabilities. Actual results could differ from management’s best estimates as additional information or actual results become available in the future, and those differences could be material. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, collectability is reasonably assured, and the risk of loss is transferred to the customer. The Company’s sales are generally FCA, payment made at the origination point at the Company’s facility, and title passes as the product is loaded into rail cars hired by the customer. Certain spot-rate customers have shipping terms of FCA, payment made at the destination; the Company recognizes this revenue when the sand is received at the destination. The Company derives its revenue by mining and processing sand that its customers purchase. Its revenues are primarily a function of the price per ton realized and the volumes sold. In some instances, its revenues also include transportation costs it charges its customers, a monthly charge to reserve sand capacity and shortfall payments due from customers for minimum volume commitments. The Company’s transportation revenue fluctuates based on a number of factors, including the volume of product it transports and the distance between its plant and customers. The Company’s reservation and shortfall revenues are based on negotiated contract terms and are recognized when rights of use are expired. The Company sells a limited amount of its products under short-term price agreements or at prevailing market rates. The majority of the Company’s revenues are realized through take-or-pay supply agreements with four customers. The expiration dates of these contracts range from 2019 through 2020.These agreements define, among other commitments, the volume of product that its customers must purchase, the volume of product that the Company must provide, and the price that the Company will charge and that its customers will pay for each ton of contracted product. Prices under these agreements are generally indexed to the Average Cushing Oklahoma WTI Spot Prices and contain provisions allowing for upward adjustment including: (i) annual percentage price increases; or (ii) market factor increases, including a natural gas surcharge and a propane surcharge which are applied if the Average Natural Gas Price or the Average Quarterly Mont Belvieu TX Propane Spot Price, respectively, as listed by the U.S. Energy Information Administration, are above the benchmark set in the contract for the preceding calendar quarter. As a result, the Company’s realized prices may not grow at rates consistent with broader industry pricing. For example, during periods of rapid price growth, its realized prices may grow more slowly than those of competitors, and during periods of price decline, its realized prices may outperform industry averages. With respect to the take-or-pay arrangements, if the customer is not allowed to make up deficiencies, the Company recognizes revenues of the minimum contracted quantity and minimum contract price, assuming payment has been received or is reasonably assured. If deficiencies can be made up, amounts billed and collected in excess of actual sales are recognized as deferred revenues until production is actually taken by the customer or the right to make up deficiencies expires. These agreements generally provide that, if the Company is unable to deliver the contracted minimum volumes, the customer has the right to purchase replacement product from alternative sources, provided that the inability to supply is not the result of an excusable delay, as defined in these agreements. In the event that the price of the replacement product exceeds the contract price and the inability to supply the contracted minimum volume is not the result of an excusable delay, the Company is responsible for the difference. The Company also recognizes revenue on the rental of its leased rail car fleet to customers either under long-term contracts or on an as-used basis. For the years ended December 31, 2016, 2015 and 2014, the Company recognized $5,732, $3,543 and $1,563 of rail car revenue, respectively. At December 31, 2016, 2015 and 2014, the Company recognized $20,902, $10,095 and $0 of revenue relating to minimum required payments under take-or-pay contracts, respectively. At December 31, 2016, 2015 and 2014, the Company recognized $15,041, $1,000 and $0 in reservation revenue, respectively. At December 31, 2016, 2015 and 2014, the Company determined that no amounts related to minimum commitments under customer contracts were due or payable to the Company. Amounts invoiced or received from customers in advance of sand deliveries are recorded as deferred revenue. |
Accounts and Unbilled Receivables | Accounts and Unbilled Receivables Accounts receivable represents customer transactions that have been invoiced as of the balance sheet date; unbilled receivables represent customer transactions that have not yet been invoiced as of the balance sheet date. Accounts receivable are due within 30 days, or in accordance with terms agreed upon with customers, and are stated at amounts due from customers net of any allowance for doubtful accounts. The Company considers accounts outstanding longer than the payment terms past due. The Company determines the allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the customer’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. Accounts receivables are written off when they are deemed uncollectible, and payments subsequently received on such receivables are credited to bad debt expense. As of December 31, 2016 and 2015, the Company determined no allowance for doubtful accounts was necessary. As of December 31, 2016 and 2015, $0 and $3,875 of unbilled revenue represent transactions included in deferred revenue, respectively. |
Deferred Revenue | Deferred Revenue The Company receives advance payments from certain customers in order to secure and procure a reliable provision and delivery of product. The Company classifies such advances as current or noncurrent liabilities depending upon the anticipated timing of delivery of the supplied product. Revenue is recognized upon the delivery of the product. The Company may receive an advance payment from a customer, based on the terms of the customer’s long-term contract, for a certain volume of product to be delivered. Revenue is recognized as product is delivered and the deferred revenue is reduced. The deferred revenue balance at December 31, 2016 and 2015 was $1,615 and $7,133, respectively and classified as a current liability in the accompanying consolidated balance sheets. |
Shipping | Shipping Shipping revenue is classified as revenue. Revenue generated from shipping was $480, $2,294 and $3,972, respectively, for the years ended December 31, 2016, 2015 and 2014. Shipping costs are classified as cost of goods sold. Shipping costs consist of railway transportation costs to deliver products to customers. Cost of sales generated from shipping was $1,172, $2,257 and $4,246 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Inventories | Inventories The Company’s sand inventory consists of raw material (sand that has been excavated but not processed), work-in-progress (sand that has undergone some but not all processing) and finished goods (sand that has been completely processed and is ready for sale). The spare parts inventory consists of critical spare parts. Sand inventory is stated at the lower of cost or net realizable value using the average cost method. For the year ended December 31, 2016 and 2015, respectively, the Company had no write-down of inventory as a result of any lower of cost or market assessment. Costs applied to the inventory include direct excavation costs, processing costs, overhead allocation, depreciation and depletion. Stockpile tonnages are calculated by measuring the number of tons added and removed from the stockpile. Costs are calculated on a per ton basis and are applied to the stockpiles based on the number of tons in the stockpile. The Company performs quarterly physical inventory measurements to verify the quantity of inventory on hand. Due to variation in sand density and moisture content and production processes utilized to manufacture the Company’s products, physical inventories will not necessarily detect all variances. To mitigate this risk, the Company recognizes a yield adjustment on its inventories. Spare parts inventory is accounted for on a first-in, first-out basis at the lower of cost or net realizable value. |
Deferred Financing Charges | Deferred Financing Charges Direct costs incurred in connection with the revolving credit facility have been capitalized and are being amortized using the straight-line method, which approximates the effective interest method, over the life of the debt. Fees attributable to the lender and third parties of $1,178 are presented as components of deferred financing charges since there is no outstanding balance on the revolving credit facility as of December 31, 2016. Deferred financing fees attributable to the lender of $486 are presented as a reduction to the revolving credit facility, net in the non-current liabilities section of the balance sheet as of December 31, 2015. Amortization expense of the deferred financing charges of $159, $251 and $86, and accretion expense of debt discount of $263, $519 and $183 are included in interest expense as of December 31, 2016, 2015 and 2014, respectively. As part of the December 2015 amendment to the revolving credit facility, the Company was required to calculate quarterly permanent reductions to the maximum commitment available under the revolving credit facility. During the year ended December 31, 2016, the Company accelerated amortization of $18 representing a portion of the remaining unamortized balance of debt issuance costs. Refer to Note 9 – Credit Facilities for additional disclosure on the Company’s revolving credit agreement. |
Financial Instruments | Financial Instruments The carrying value of the Company’s financial instruments, consisting of cash, accounts receivable, accounts payable and accrued expenses, approximates their fair value due to the short maturity of such instruments. Financial instruments also consist of debt for which fair value approximates carrying values as the debt bears interest at a variable rate which is reflective of current rates otherwise available to the Company. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Costs related to researching, surveying, drilling, and related activities are recorded at cost and capitalized once a determination has been made that the Company’s property has proven and probable reserves. Capitalized mining costs are depleted using the units-of-production method. Construction in progress is primarily comprised of machinery and equipment which has not been placed in service and is not depreciated until the related assets or improvements are ready to be placed in service. Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment, which are: Years Land improvements 10 Plant and buildings 5-15 Real estate properties 10-40 Rail spur 30 Vehicles 3-5 Machinery, equipment and tooling 3-15 Furniture and fixtures 3-10 Deferred mining costs 3 Expenditures for maintenance and repairs are charged against income as incurred; betterments that increase the value or materially extend the life of the related assets are capitalized. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is recognized in the consolidated income statements. |
Fair Value Measurements | Fair Value Measurements The Company’s financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, of which the first two are considered observable and the last unobservable, which are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs that reflect the Company’s assumptions that market participants would use in pricing assets or liabilities based on the best information available. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”) - 718, Compensation—Stock Compensation (“ASC 718”), which requires the recognition of expense related to the fair value of stock-based compensation awards in the Statements of Operations. For restricted stock issued to employees and members of the board of directors of the Company (the “Board”) for their services on the Board, the Company estimates the grant date fair value of each share of restricted stock at issuance. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense, net of estimated forfeitures, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using the straight-line recognition method when it is probable that the performance condition will be achieved. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Share-based payments issued to non-employees are recorded at their fair values, and are periodically revalued as the equity instruments vest and are recognized as expense over the related service period in accordance with the provisions of ASC 718 and ASC Topic 505, Equity. Prior to the Company’s initial public offering, the grant date fair value was calculated based on a weighted analysis of (i) publicly-traded companies in similar line of business to the Company (market comparable method)—Level 2 inputs, and (ii) discounted cash flows of the Company—Level 3 inputs. Once the Company’s shares became publicly traded on November 4, 2016, the Company began to use the actual market price of its shares as the grant date fair value for restricted stock awards. |
Income Taxes | Income Taxes The Company applies the provisions of ASC Topic 740, Income Taxes (“ASC 740”), which principally utilizes a balance sheet approach to provide for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of net operating loss carryforwards and temporary differences between the carrying amounts and the tax bases of assets and liabilities. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The impact of an uncertain income tax position on the income tax returns must be recognized at the largest amount that is more-likely-than-not to be required to be recognized upon audit by the relevant taxing authority. This standard also provides guidance on de-recognition, measurement, classification, interest and penalties, accounting for interim periods, disclosure and transition issues with respect to tax positions. The Company includes interest and penalties as a component of income tax expense in the consolidated statement of operations. For the periods presented, no interest and penalties were recorded. |
Environmental Matters | Environmental Matters The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Company’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed as incurred. Liabilities are recorded when environmental costs are probable, and the costs can be reasonably estimated. The Company maintains insurance which may cover in whole or in part certain environmental expenditures. As of December 31, 2016 and 2015, there were no probable environmental matters. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income was equal to net income for all periods presented. |
Segment Information | Segment Information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one operating segment. All long-lived assets of the Company reside in the United States. |
Basic and Diluted Net Income Per Share of Common Stock | Basic and Diluted Net Income Per Share of Common Stock Basic net income per share of common stock is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding the dilutive effects of Series A Preferred Stock, warrants to purchase common stock and restricted stock. Diluted net income per share of common stock is computed by dividing the net income attributable to common stockholders by the sum of the weighted-average number of shares of common stock outstanding during the period plus the potential dilutive effects of Series A Preferred Stock and warrants to purchase common stock, and restricted stock outstanding during the period calculated in accordance with the treasury stock method, although these shares, restricted stock and warrants are excluded if their effect is anti-dilutive. The following table reconciles the weighted-average common shares outstanding used in the calculation of basic net income per share to the weighted average common shares outstanding used in the calculation of diluted net income per share: Year Ended December 31, 2016 2015 2014 Determination of Shares Weighted average common shares outstanding 24,322,264 22,114,400 22,039,966 Assumed conversion of warrant — 3,999,998 3,999,998 Assumed conversion of restricted stock 257,126 285,602 202,988 Diluted weighted average common stock outstanding 24,579,390 26,400,000 26,242,952 |
Reclassification | Reclassification Certain 2015 financial statement items have been reclassified to conform to the current financial statement presentation. These reclassifications have no effect on previous reported net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The guidance is effective for the Company beginning after December 15, 2017, although early adoption is permitted. The Company is currently evaluating the effects of ASU 2016-15 on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The amendments in ASU 2016-12 provide clarifying guidance in certain narrow areas and add some practical expedients. Specifically, the amendments in this update (1) clarify the objective of the collectability criterion in step 1, and provides additional clarification for when to recognize revenue for a contract that fails step 1, (2) permit an entity, as an accounting policy election, to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price (3) specify that the measurement date for noncash consideration is contract inception, and clarifies that the variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration, (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations, (5) clarifies that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Further, accounting for elements of a contract that do not affect revenue under legacy GAAP are irrelevant to the assessment of whether a contract is complete. In addition, the amendments permit an entity to apply the modified retrospective transition method either to all contracts or only to contracts that are not completed contracts, and (6) clarifies that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The guidance is effective for the Company beginning January 1, 2018, although early adoption is permitted beginning January 1, 2017. Although the Company is still in the process of assessing the impact of the adoption of ASU 2014-09, it does not currently anticipate a material impact on its financial statements. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. ASU 2016-11 rescinds several SEC Staff Announcements that are codified in Topic 605, including, among other items, guidance relating to accounting for shipping and handling fees and freight services. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The guidance is effective for the Company beginning January 1, 2018, although early adoption is permitted beginning January 1, 2017. The Company is currently evaluating the effects of ASU 2016-11 on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”). The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. The guidance is effective for the Company beginning January 1, 2018, although early adoption is permitted beginning January 1, 2017. The Company is currently evaluating the effects of ASU 2016-10 on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “Stock Compensation (ASC 718)—Improvements to Employee Share-Based Payment Accounting”, which is intended to simplify the tax accounting impacts of stock compensation. Additionally, the new standard provides accounting policy elections regarding vesting and forfeiture accounting. The new standard is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has elected to early adopt this standard. It elected to account for forfeitures when they occur. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (ASC 842), which replaces the existing guidance in ASC 840, “Leases.” ASC 842 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. The new lease standard does not substantially change lessor accounting. The new standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes—Balance Sheet Classification of Deferred Taxes”, which requires the presentation of deferred tax liabilities and assets be classified as non-current on balance sheets. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. We have elected to early adopt this guidance prospectively as of December 31, 2015. The adoption only impacted deferred tax presentation on the consolidated balance sheet and related disclosure. No prior periods were retrospectively adjusted. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”, which requires an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new standard is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company has elected to prospectively early adopt the standard effective December 31, 2016 and has measured its inventory at the lower of cost or net realizable value. The impacts on the early adoption of ASU 2015-11 are not significant. In April 2015, the FASB issued ASU No. 2015-15, “Interest-Imputation of Interest”, which simplifies presentation of debt issuance costs. The new standard requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The new standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Since there is no outstanding balance under the revolving credit facility as of December 31, 2016, the Company has classified such debt issuance costs as non-current assets. The Company has presented such debt issuance costs as a reduction from its revolving credit facility as of December 31, 2015. In August 2014, the FASB issued ASU No. 2014-15, “Going Concern”, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. Accordingly, the Company incorporated this guidance into its internal control over financial reporting beginning with this Annual Report on Form 10-K for the year ended December 31, 2016. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is only permitted as of annual reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated financial statements nor decided upon the method of adoption. Although the Company is still in the process of assessing the impact of the adoption of ASU 2014-09, it does not currently anticipate a material impact on its financial statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment, which are: Years Land improvements 10 Plant and buildings 5-15 Real estate properties 10-40 Rail spur 30 Vehicles 3-5 Machinery, equipment and tooling 3-15 Furniture and fixtures 3-10 Deferred mining costs 3 |
Reconciliation of Weighted-Average Common Shares Outstanding Used in the Calculation of Basic Net Income Per Share and Diluted Net Income Per Share | The following table reconciles the weighted-average common shares outstanding used in the calculation of basic net income per share to the weighted average common shares outstanding used in the calculation of diluted net income per share: Year Ended December 31, 2016 2015 2014 Determination of Shares Weighted average common shares outstanding 24,322,264 22,114,400 22,039,966 Assumed conversion of warrant — 3,999,998 3,999,998 Assumed conversion of restricted stock 257,126 285,602 202,988 Diluted weighted average common stock outstanding 24,579,390 26,400,000 26,242,952 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, 2016 2015 Raw material $ 229 $ 3 Work in progress 12,758 11,096 Finished goods 451 1,021 Spare parts 61 22 Total inventory 13,499 12,142 Less: current portion 10,344 5,025 Total inventory, net of current portion $ 3,155 $ 7,117 |
Prepaid Expenses and Other Cu34
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets comprised of the following: December 31, 2016 2015 Prepaid insurance $ 514 $ 100 Prepaid expenses 861 533 Prepaid income taxes — 888 Other receivables 28 3 Total prepaid expenses and other current assets $ 1,403 $ 1,524 |
Property, Plant and Equipment35
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Net Property, Plant and Equipment | Net property, plant and equipment consists of: December 31, 2016 2015 Machinery, equipment and tooling $ 4,841 $ 4,673 Vehicles 953 952 Furniture and fixtures 305 303 Plant and building 64,390 64,001 Real estate properties 3,503 3,500 Railroad and sidings 7,927 7,868 Land and improvements 13,317 12,977 Asset retirement obligation 1,324 1,135 Mineral properties 9,785 9,785 Deferred mining costs 417 155 Construction in progress 16,715 16,637 123,477 121,986 Less: accumulated depreciation and depletion 19,381 13,058 Total property, plant and equipment, net $ 104,096 $ 108,928 |
Accrued and Other Expenses (Tab
Accrued and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Expenses | Accrued and other expenses were comprised of the following: December 31, 2016 2015 Employee related expenses $ 955 $ 216 Accrued construction 19 917 Accrued legal expenses 22 99 Accrued professional fees 350 139 Accrued freight and delivery charges 383 162 Accrued revolving credit facility interest — 701 Derivative Liability — 455 Other accrued liabilities 701 1,089 Total accrued liabilities $ 2,430 $ 3,778 |
Equipment Lease Obligations (Ta
Equipment Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Equipment Lease Obligations | Future minimum lease payments for equipment lease obligations as of December 31, 2016 are as follows: Year Ended December 31, Amount 2017 $ 721 2018 589 Total minimum lease payments 1,310 Amount representing interest at 0% - 5% (64 ) Present value of payments 1,246 Less: current portion (674 ) Total equipment financing obligations, net of current portion $ 572 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Notes Payable | Aggregate maturities of notes payable are as follows: December 31, Amount 2017 $ 282 2018 288 Total 570 Less: current portion (282 ) Total notes payable, net current portion $ 288 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Reconciliation of Total Reclamation Liability for Asset Retirement Obligations | The following is a reconciliation of the total reclamation liability for asset retirement obligations. Balance at December 31, 2014 $ 1,765 Additions to liabilities 105 Reductions to liabilities due to revision of estimates (719 ) Accretion expenses 29 Balance at December 31, 2015 1,180 Additions to liabilities 399 Reductions to liabilities due to revision of estimates (211 ) Accretion expenses 16 Balance at December 31, 2016 $ 1,384 |
Mandatorily Redeemable Series40
Mandatorily Redeemable Series A Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mandatorily Redeemable Series A Preferred Stock | |
Summary of Series A Redeemable Preferred Stock | At December 31, 2016 and 2015, the Series A Redeemable Preferred Stock consisted of: Balance at December 31, 2014 $ 29,059 Accumulated dividends 4,865 Net accretion of issuance & transaction costs 784 Balance at December 31, 2015 34,708 Accumulated dividends $ 4,776 Net accretion of issuance & transaction costs 845 Payoff of Series A Preferred Stock (40,329 ) Balance at December 31, 2016 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Unrecognized Compensation Expense is Expected to be Recognized | At December 31, 2016 the Company had unrecognized compensation expense of $1,347. That expense is expected to be recognized as follows: Year Ending December 31, 2017 $ 608 2018 508 2019 214 2020 17 $ 1,347 |
2012 Equity Incentive Plan | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity under the Plan from January 1, 2015 through December 31, 2016: Number of Shares Weighted Average Unvested, January 1,2015 370,407 $ 7.89 Granted 44,000 8.06 Vested (98,450 ) (7.61 ) Forfeiture (26,400 ) (7.75 ) Unvested, December 31,2015 289,557 $ 8.02 Granted 160,600 3.85 Vested (167,090 ) (6.79 ) Forfeiture (9,900 ) (6.00 ) Unvested, December 31, 2016 273,167 $ 7.35 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2016 2015 2014 Current Federal $ 8,337 $ 245 $ 820 State and local 518 184 320 Total current expense 8,855 429 1,140 Deferred Federal 537 3,610 8,198 State and local 2 90 180 Total deferred income tax expense 539 3,700 8,378 Total income tax expense $ 9,394 $ 4,129 $ 9,518 |
Reconciliation of Differences between Federal Statutory and Effective Income Tax Rate | Income tax expense related to operations differs from the amounts computed by applying the statutory income tax rate of 35% to pretax income as follows: Year Ended December 31, 2016 2015 2014 At statutory rate $ 6,921 $ 3,192 $ 5,976 Non-deductible interest expense 1,948 1,777 2,136 State taxes, net of US federal benefit 339 211 393 Federal tax deductions (648 ) (19 ) (19 ) Change in applicable tax rate — — 308 Costs associated with possible restructuring — (940 ) 913 Provision to return permanent difference 933 (68 ) (96 ) Other (99 ) (24 ) (93 ) Total income tax expense $ 9,394 $ 4,129 $ 9,518 |
Significant Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets for federal and state income taxes are as follows: Year Ended December 31, 2016 2015 Deferred tax assets: Reserves and accruals $ 568 $ 537 Total gross deferred tax assets 568 537 Deferred tax liabilities: Prepaid expenses and other (132 ) 122 Depreciation and amortization (15,480 ) (15,164 ) Total gross deferred tax liabilities (15,612 ) (15,042 ) Less: current net deferred tax assets — — Noncurrent deferred tax liabilities, net $ (15,044 ) $ (14,505 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Annual Commitments Under Operating Leases | The Company is obligated under certain operating leases and rental agreements for railroad cars, office space, and other equipment. Future minimum annual commitments under such operating leases at December 31, 2016 are as follows: Twelve months ending December 31, 2017 $ 6,576 2018 5,173 2019 4,052 2020 3,038 2021 2,247 Thereafter 338 |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table sets forth our unaudited quarterly consolidated statements of operations for each of the last four quarters for the periods ended December 31, 2016 and 2015. This unaudited quarterly information has been prepared on the same basis as our annual audited financial statements and includes all adjustments, consisting only of normal recurring adjustments that are necessary to present fairly the financial information for the fiscal quarters presented. 2016: First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 10,359 $ 8,494 $ 10,927 $ 29,451 Cost of goods sold 5,337 6,531 5,931 8,770 Operating expenses 2,188 2,214 2,461 5,408 Net income (loss) 382 (2,349 ) (95 ) 12,441 Earnings per share, basic 0.02 (0.11 ) — 0.40 Earnings per share, diluted 0.01 (0.11 ) — 0.40 Weighted average number of shares outstanding, basic 22,135 22,169 22,189 30,952 Weighted average number of shares outstanding, diluted 26,410 22,169 22,189 31,210 2015: First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 13,071 $ 10,437 $ 9,025 $ 15,165 Cost of goods sold 7,804 4,467 4,865 3,867 Operating expenses 2,739 2,805 2,314 2,254 Net income (loss) 203 726 1,796 2,265 Earnings per share, basic 0.01 0.03 0.08 0.10 Earnings per share, diluted 0.01 0.03 0.07 0.09 Weighted average number of shares outstanding, basic 22,039 22,092 22,112 22,114 Weighted average number of shares outstanding, diluted 26,411 26,410 26,388 26,400 |
Organization and Nature of Bu45
Organization and Nature of Business - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Quantifying Prior Year Misstatements Corrected In Current Year Financial Statements [Abstract] | ||
Correction resulted, decrease in current liabilities | $ 861 | |
Correction resulted, increase in net income | $ 492 | $ 369 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Nov. 09, 2016shares | Dec. 31, 2016shares | Dec. 31, 2015shares |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Common stock split ratio | 2,200 | ||
Common stock, shares authorized | 350,000,000 | 350,000,000 | 350,000,000 |
Effective date of stock split | Nov. 9, 2016 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2016USD ($)CustomerSegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 18, 2015USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of customers with supply agreement | Customer | 4 | |||
Agreements expiring period | 2,019 | |||
Agreements expiring period | 2,020 | |||
Rail car revenue recognized | $ 5,732,000 | $ 3,543,000 | $ 1,563,000 | |
Reservation revenue recognized | 15,041,000 | 1,000,000 | 0 | |
Amount related to minimum commitments under customer contracts due or payable | $ 0 | 0 | 0 | |
Accounts receivables due period | 30 days | |||
Accounts receivables, allowance for doubtful accounts | $ 0 | 0 | ||
Deferred revenue balance | 1,615,000 | 7,133,000 | ||
Revenue generated from shipping | 480,000 | 2,294,000 | 3,972,000 | |
Cost of goods sold generated from shipping | 1,172,000 | 2,257,000 | 4,246,000 | |
Inventory write-down | 0 | |||
Debt, face amount | 1,178,000 | 486,000 | ||
Amortization of deferred financing cost | 159,000 | 251,000 | 86,000 | |
Accretion expense of debt discount | 263,000 | 519,000 | 183,000 | |
Accelerated amortization of debt issuance costs | 18,000 | |||
Recognized income tax interest and penalties | 0 | |||
Probable environmental matters | $ 0 | |||
Number of operating segment | Segment | 1 | |||
Revolving Credit Facility | ||||
Significant Accounting Policies [Line Items] | ||||
Long-term Line of Credit | $ 0 | $ 75,000,000 | ||
Unbilled Revenues [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred revenue | 0 | 3,875,000 | ||
Take-or-pay Contracts [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenue recognized relating to minimum required payments | $ 20,902,000 | $ 10,095,000 | $ 0 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Estimated Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Land and Improvements | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Rail Spur | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Deferred Mining Costs | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Minimum | Plant and Building | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Minimum | Real Estate Properties | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Minimum | Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Minimum | Machinery, Equipment and Tooling | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Minimum | Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum | Plant and Building | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Maximum | Real Estate Properties | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Maximum | Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Maximum | Machinery, Equipment and Tooling | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Maximum | Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Reconciliation of Weighted-Average Common Shares Outstanding Used in the Calculation of Basic Net Income Per Share and Diluted Net Income Per Share (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted-average number of common shares: | |||||||||||
Weighted average common shares outstanding | 30,952,000 | 22,189,000 | 22,169,000 | 22,135,000 | 22,114,000 | 22,112,000 | 22,092,000 | 22,039,000 | 24,322,264 | 22,114,400 | 22,039,966 |
Assumed conversion of warrant | 3,999,998 | 3,999,998 | |||||||||
Assumed conversion of restricted stock | 257,126 | 285,602 | 202,988 | ||||||||
Diluted weighted average common stock outstanding | 31,210,000 | 22,189,000 | 22,169,000 | 26,410,000 | 26,400,000 | 26,388,000 | 26,410,000 | 26,411,000 | 24,579,390 | 26,400,000 | 26,242,952 |
Cash and Restricted Cash - Addi
Cash and Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash And Cash Equivalents [Abstract] | ||
Cash exceeding federally insured limits value | $ 250 | |
Cash | 46,563 | $ 3,896 |
Restricted cash | $ 971 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 229 | $ 3 |
Work in progress | 12,758 | 11,096 |
Finished goods | 451 | 1,021 |
Spare parts | 61 | 22 |
Total inventory | 13,499 | 12,142 |
Less: current portion | 10,344 | 5,025 |
Total inventory, net of current portion | $ 3,155 | $ 7,117 |
Prepaid Expenses and Other Cu52
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 514 | $ 100 |
Prepaid expenses | 861 | 533 |
Prepaid income taxes | 888 | |
Other receivables | 28 | 3 |
Total prepaid expenses and other current assets | $ 1,403 | $ 1,524 |
Property, Plant and Equipment53
Property, Plant and Equipment, Net - Schedule of Net Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 123,477 | $ 121,986 |
Less: accumulated depreciation and depletion | 19,381 | 13,058 |
Total property, plant and equipment, net | 104,096 | 108,928 |
Machinery, Equipment and Tooling | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,841 | 4,673 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 953 | 952 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 305 | 303 |
Plant and Building | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 64,390 | 64,001 |
Real Estate Properties | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,503 | 3,500 |
Railroad and Sidings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,927 | 7,868 |
Land and Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,317 | 12,977 |
Asset Retirement Obligation | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,324 | 1,135 |
Mineral Properties | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,785 | 9,785 |
Deferred Mining Costs | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 417 | 155 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,715 | $ 16,637 |
Property, Plant and Equipment54
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expenses | $ 6,441 | $ 5,276 | $ 3,611 |
Depletion expense | 3 | 13 | 14 |
Interest expense capitalized | $ 132 | $ 1,808 | $ 453 |
Accrued and Other Expenses - Sc
Accrued and Other Expenses - Schedule of Accrued and Other Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Employee related expenses | $ 955 | $ 216 |
Accrued construction | 19 | 917 |
Accrued legal expenses | 22 | 99 |
Accrued professional fees | 350 | 139 |
Accrued freight and delivery charges | 383 | 162 |
Accrued revolving credit facility interest | 701 | |
Derivative Liability | 455 | |
Other accrued liabilities | 701 | 1,089 |
Total accrued liabilities | $ 2,430 | $ 3,778 |
Accrued and Other Expenses - Ad
Accrued and Other Expenses - Additional Information (Detail) $ in Thousands | 1 Months Ended |
Feb. 29, 2016USD ($) | |
Payables And Accruals [Abstract] | |
Settlement of derivative liabilities | $ 460 |
Credit Facilities - Additional
Credit Facilities - Additional Information (Detail) - USD ($) | Dec. 08, 2016 | Dec. 18, 2015 | Dec. 31, 2016 | Mar. 28, 2014 |
Letter of Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | |||
Letter of credit fronting fee | 0.25% | |||
Former Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 72,500,000 | |||
Credit facility available to repay outstanding preferred share and previous line of credit | 40,000,000 | |||
Direct financing costs | $ 1,675,000 | |||
Credit facility maturity date | Mar. 28, 2019 | |||
Line of credit | $ 75,000,000 | $ 0 | ||
Commitment fee | $ 250,000 | |||
Facility termination date | Nov. 9, 2016 | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 45,000,000 | |||
Facility termination date | Dec. 8, 2019 | |||
Credit facility agreement, term | 3 years | |||
Default rate, additional to interest rate | 2.00% | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate | 3.00% | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate | 4.00% | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | ABR | ||||
Line Of Credit Facility [Line Items] | ||||
Default rate, additional to interest rate | 2.00% | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | ABR | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate | 2.00% | |||
Senior Secured Revolving Credit Facility | Jeffries Finance LLC | ABR | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate | 3.00% | |||
Jeffries Finance LLC | Senior Secured Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Percentage of commitment fee | 0.375% |
Equipment Lease Obligations - A
Equipment Lease Obligations - Additional Information (Detail) - Equipment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capital Leased Assets [Line Items] | |||
Assets under equipment leases, gross | $ 2,853 | ||
Assets under equipment leases, depreciation expense | 293 | $ 293 | $ 245 |
Accumulated depreciation, capital leased assets under equipment leases | $ 757 | $ 464 |
Equipment Lease Obligations - S
Equipment Lease Obligations - Schedule of Future Minimum Lease Payments for Equipment Lease Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | ||
2,017 | $ 721 | |
2,018 | 589 | |
Total minimum lease payments | 1,310 | |
Amount representing interest at 0% - 5% | (64) | |
Present value of payments | 1,246 | |
Less: current portion | (674) | $ (409) |
Total equipment financing obligations, net of current portion | $ 572 | $ 1,246 |
Equipment Lease Obligations -60
Equipment Lease Obligations - Schedule of Future Minimum Lease Payments for Equipment Lease Obligations (Parenthetical) (Detail) | Dec. 31, 2016 |
Minimum | |
Capital Leased Assets [Line Items] | |
Capital leases future minimum payments interest rate | 0.00% |
Maximum | |
Capital Leased Assets [Line Items] | |
Capital leases future minimum payments interest rate | 5.00% |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) | Dec. 31, 2016 |
Minimum | |
Debt Instrument [Line Items] | |
Interest rates on notes | 0.00% |
Maximum | |
Debt Instrument [Line Items] | |
Interest rates on notes | 4.75% |
Notes Payable - Schedule of Mat
Notes Payable - Schedule of Maturities of Notes Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 282 | |
2,018 | 288 | |
Total | 570 | |
Less: current portion | (282) | $ (1,369) |
Total notes payable, net current portion | $ 288 | $ 569 |
Asset Retirement Obligation - A
Asset Retirement Obligation - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Post-closure reclamation and site restoration obligation | $ 1,384 | $ 1,180 | $ 1,765 |
Asset Retirement Obligation - R
Asset Retirement Obligation - Reconciliation of Total Reclamation Liability for Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation Roll Forward Analysis Roll Forward | ||
Beginning balance | $ 1,180 | $ 1,765 |
Additions to liabilities | 399 | 105 |
Reductions to liabilities due to revision of estimates | (211) | (719) |
Accretion expenses | 16 | 29 |
Ending balance | $ 1,384 | $ 1,180 |
Mandatorily Redeemable Series65
Mandatorily Redeemable Series A Preferred Stock - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2012USD ($)shares | Sep. 30, 2011USD ($)$ / sharesshares | Dec. 31, 2016USD ($)Directorshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Nov. 09, 2016USD ($) | Jul. 01, 2013shares | Sep. 13, 2011shares | |
Class Of Stock [Line Items] | ||||||||
Common stock, shares issued | shares | 38,884,068 | 22,139,480 | ||||||
Interest expense incurred | $ 5,565 | $ 5,078 | $ 5,601 | |||||
Transaction costs incurred in connection with the issuance of the preferred shares | $ 11,047 | |||||||
Series A Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Redeemable Series A preferred stock | $ 40,329 | |||||||
Mandatorily Redeemable Series A Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | shares | 100,000 | 200,000 | ||||||
Preferred stock, voting rights description | The holders of the shares of Series A Preferred Stock were not entitled to vote, but were entitled to elect four of the seven directors to the Board. | |||||||
Number of directors entitled to be elected | Director | 4 | |||||||
Number of directors | Director | 7 | |||||||
Preferred stock, dividend rate per annum | 15.00% | |||||||
Preferred shares issued for dividends | shares | 4,776 | 4,865 | 4,218 | |||||
Interest expense incurred | $ 5,624 | $ 5,652 | $ 5,965 | |||||
Interest expense capitalized to property, plant and equipment | $ 59 | $ 574 | $ 364 | |||||
Mandatorily redeemable preferred shares date | Sep. 13, 2016 | |||||||
Mandatorily Redeemable Series A Preferred Stock | Installment One | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred Stock, Dividend Payment Terms | Dividends accrued and accumulated on the Series A Preferred Stock, whether or not earned or declared, at the rate of 15% per annum and compound quarterly on April 1, July 1, October 1 and January 1. | |||||||
Mandatorily Redeemable Series A Preferred Stock | Tranche One | ||||||||
Class Of Stock [Line Items] | ||||||||
Transaction costs incurred in connection with the issuance of the preferred shares | $ 1,698 | |||||||
Mandatorily Redeemable Series A Preferred Stock | Tranche Two | ||||||||
Class Of Stock [Line Items] | ||||||||
Transaction costs incurred in connection with the issuance of the preferred shares | $ 1,639 | |||||||
Series A Investor | ||||||||
Class Of Stock [Line Items] | ||||||||
Date of agreement | Sep. 13, 2011 | |||||||
Series A Investor | Tranche One | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock, shares issued | shares | 14,300,000 | |||||||
Proceeds from issuance of common stock | $ 22,000 | |||||||
Series A Investor | Mandatorily Redeemable Series A Preferred Stock | Tranche One | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares issued | shares | 22,000 | |||||||
Preferred stock issued, value per share | $ / shares | $ 1,000 | |||||||
Series A Investor | Mandatorily Redeemable Series A Preferred Stock | Tranche Two | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares issued | shares | 26,000 | |||||||
Proceeds from issuance of redeemable preferred stock | $ 26,000 |
Mandatorily Redeemable Series66
Mandatorily Redeemable Series A Preferred Stock - Summary of Series A Redeemable Preferred Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Beginning Balance | $ 34,708 | |
Ending Balance | $ 34,708 | |
Mandatorily Redeemable Series A Preferred Stock | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Beginning Balance | 34,708 | 29,059 |
Accumulated dividends | 4,776 | 4,865 |
Net accretion of issuance & transaction costs | 845 | 784 |
Payoff of Series A Preferred Stock | $ (40,329) | |
Ending Balance | $ 34,708 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) | Nov. 09, 2016shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2011USD ($)shares | Dec. 31, 2015shares |
Class Of Stock [Line Items] | ||||
Common stock, value issued | $ | $ 127,302,000 | |||
Common stock shares pledged under guarantee | 5,896,000 | |||
Common stock split ratio | 2,200 | |||
Common stock, shares authorized | 350,000,000 | 350,000,000 | 350,000,000 | |
Preferred stock, undesignated shares authorized | 10,000,000 | |||
Series A Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock, shares issued | 14,300,000 | |||
Common stock, value issued | $ | $ 0 | |||
Convertible preferred stock value issued upon conversion | $ | $ 1,179,000 | |||
Convertible preferred stock, shares issued upon conversion | 14,300,000 | |||
Convertible preferred stock, settlement terms | the amount allocated to the Series A Investor’s common shares was accreted to the face value of the Series A Preferred Stock with a corresponding charge to interest expense over the 5-year term of the Series A Preferred Stock. | |||
Preferred shares corresponding charge interest expense period | 5 years |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) | Dec. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||||
Warrants to purchase common stock | 3,999,998 | |||
Purchase price per share | $ 0.0045 | |||
Warrants expiration duration | 8 years | |||
Expense recognized inclusive of accelerated expense for warrants performance criteria. | $ 348,000 | $ 0 | $ 0 | |
Accelerated recognition of remaining warrant expense | $ 255,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized stock based compensation expense | $ 1,347 | $ 1,347 | |||
2012 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares authorized for issuance | 880,000 | 440,000 | |||
2012 Equity Incentive Plan | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted stock shares issued | 160,600 | 44,000 | 338,800 | ||
Grant date fair value per share | $ 3.85 | $ 8.06 | |||
Stock compensation expense recognized | $ 1,072 | $ 793 | $ 419 | ||
Unrecognized stock based compensation expense | $ 1,347 | $ 1,347 | |||
Vesting of restricted stock, shares | 167,090 | 98,450 | |||
2012 Equity Incentive Plan | Performance Based Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting of restricted stock, shares | 77,000 | ||||
Accelerated recognition of remaining compensation expense | $ 242 | ||||
2012 Equity Incentive Plan | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expiration period | 5 years | ||||
Percent of voting power | 10.00% | ||||
2012 Equity Incentive Plan | Minimum | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grant date fair value per share | $ 1.89 | ||||
Shares vest over period | 2 years | ||||
2012 Equity Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
2012 Equity Incentive Plan | Maximum | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grant date fair value per share | $ 8.06 | ||||
Shares vest over period | 5 years |
Unrecognized Compensation Expen
Unrecognized Compensation Expense is Expected to be Recognized (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | $ 1,347 |
2,017 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | 608 |
2,018 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | 508 |
2,019 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | 214 |
2,020 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Unrecognized stock based compensation expense | $ 17 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - 2012 Equity Incentive Plan - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares Unvested, Beginning balance | 289,557 | 370,407 | |
Number of Shares, Granted | 160,600 | 44,000 | 338,800 |
Number of Shares, Vested | (167,090) | (98,450) | |
Number of Shares, Forfeitures | (9,900) | (26,400) | |
Number of Shares Unvested, Ending balance | 273,167 | 289,557 | 370,407 |
Weighted Average Unvested, Beginning balance | $ 8.02 | $ 7.89 | |
Weighted Average, Granted | 3.85 | 8.06 | |
Weighted Average, Vested | (6.79) | (7.61) | |
Weighted Average, Forfeitures | (6) | (7.75) | |
Weighted Average Unvested, Ending balance | $ 7.35 | $ 8.02 | $ 7.89 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ 8,337 | $ 245 | $ 820 |
State and local | 518 | 184 | 320 |
Total current expense | 8,855 | 429 | 1,140 |
Deferred | |||
Federal | 537 | 3,610 | 8,198 |
State and local | 2 | 90 | 180 |
Total deferred income tax expense | 539 | 3,700 | 8,378 |
Total income tax expense | $ 9,394 | $ 4,129 | $ 9,518 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Valuation allowance | $ 0 | $ 0 | |
State net operating losses | 0 | 0 | $ 0 |
Liability for uncertain tax position | $ 0 | $ 0 |
Reconciliation of Differences b
Reconciliation of Differences between Federal Statutory and Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
At statutory rate | $ 6,921 | $ 3,192 | $ 5,976 |
Non-deductible interest expense | 1,948 | 1,777 | 2,136 |
State taxes, net of US federal benefit | 339 | 211 | 393 |
Federal tax deductions | (648) | (19) | (19) |
Change in applicable tax rate | 308 | ||
Costs associated with possible restructuring | (940) | 913 | |
Provision to return permanent difference | 933 | (68) | (96) |
Other | (99) | (24) | (93) |
Total income tax expense | $ 9,394 | $ 4,129 | $ 9,518 |
Significant Deferred Tax Assets
Significant Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Reserves and accruals | $ 568 | $ 537 |
Total gross deferred tax assets | 568 | 537 |
Deferred tax liabilities: | ||
Prepaid expenses and other | (132) | 122 |
Depreciation and amortization | (15,480) | (15,164) |
Total gross deferred tax liabilities | (15,612) | (15,042) |
Noncurrent deferred tax liabilities, net | $ (15,044) | $ (14,505) |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Sale Of Subsidiary [Abstract] | |||
Defined contribution plan, employer discretionary contribution amount | $ 248 | $ 181 | $ 121 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016CustomerVendorSupplier | Dec. 31, 2015CustomerVendorSupplier | Dec. 31, 2014CustomerSupplier | |
Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of customers | 3 | 3 | |
Accounts Receivable | Customer Concentration Risk | Three Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 92.00% | 96.00% | |
Revenue | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of customers | 4 | 4 | 3 |
Revenue | Customer Concentration Risk | Three Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 79.00% | ||
Revenue | Customer Concentration Risk | Four Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 96.00% | 94.00% | |
Accounts Payables | Supplier Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of vendors | Vendor | 1 | 3 | |
Accounts Payables | Supplier Concentration Risk | One Vendor | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35.00% | ||
Accounts Payables | Supplier Concentration Risk | Three Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 71.00% | ||
Cost of Goods Sold | Supplier Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of suppliers | Supplier | 2 | 4 | 3 |
Cost of Goods Sold | Supplier Concentration Risk | Two Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 32.00% | ||
Cost of Goods Sold | Supplier Concentration Risk | Four Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 33.00% | ||
Cost of Goods Sold | Supplier Concentration Risk | Three Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 45.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Consulting expenses | $ 0 | $ 0 | $ 104 | |
Related party cost | 45 | |||
Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Term of loan | 1 year | |||
Percentage of loan | 0.00% | |||
Loan amount included as compensation to the Chief Executive Officer | $ 61 | |||
Series A Investor | Management and Administrative Support Services | ||||
Related Party Transaction [Line Items] | ||||
Reimbursed out-of-pocket and other expenses | $ 42 | $ 27 | $ 130 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Annual Commitments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 6,576 |
2,018 | 5,173 |
2,019 | 4,052 |
2,020 | 3,038 |
2,021 | 2,247 |
Thereafter | $ 338 |
Commitments and Contingencies80
Commitments and Contingencies - Additional Information (Detail) | Aug. 31, 2010USD ($)$ / a | Dec. 31, 2016USD ($) | Nov. 30, 2016USD ($) | Dec. 31, 2016USD ($)$ / t | Jul. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | |||||||
Expenses related to operating leases and rental agreements | $ 7,065,000 | $ 4,098,000 | $ 2,530,000 | ||||
Restricted cash | $ 971,000 | 971,000 | 0 | ||||
Consulting Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Reimbursed out-of-pocket and other expenses | $ 10,000 | ||||||
Closing fee per acre | $ / a | 1 | ||||||
Consulting fees, expenses reimbursements and closing costs | $ 0 | 841,000 | 206,000 | ||||
Tonnage fees per ton | $ / t | 0.50 | ||||||
Tonnage fees incurred | $ 258,000 | $ 252,000 | $ 332,000 | ||||
Consulting Agreement | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Tonnage fees | $ 200,000 | ||||||
Employment Agreements | |||||||
Loss Contingencies [Line Items] | |||||||
Agreements renewal period | 1 year | ||||||
Commitments under employment agreement | 1,175,000 | $ 1,175,000 | |||||
Agreement expiration date | 2017-05 | ||||||
Performance Bond | Jackson County, Wisconsin | |||||||
Loss Contingencies [Line Items] | |||||||
Bond, carrying value | 4,400,000 | $ 4,400,000 | |||||
Performance Bond | Monroe County, Wisconsin | |||||||
Loss Contingencies [Line Items] | |||||||
Bond, carrying value | 900,000 | 900,000 | |||||
Performance Bond | Pipeline Common Carrier [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Bond, carrying value | 1,943,000 | 1,943,000 | |||||
Restricted cash | 971,000 | 971,000 | |||||
Permit bond | Town of Curran, Wisconsin | |||||||
Loss Contingencies [Line Items] | |||||||
Bond, carrying value | 1,000,000 | $ 1,000,000 | |||||
Customers in Conjunction with Bankruptcy Proceedings | |||||||
Loss Contingencies [Line Items] | |||||||
Unsecured bankruptcy claim granted | $ 12,000,000 | ||||||
Purchase of unsecured bankruptcy claim by third party | $ 6,600,000 |
Quarterly Financial Data (Una81
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 29,451 | $ 10,927 | $ 8,494 | $ 10,359 | $ 15,165 | $ 9,025 | $ 10,437 | $ 13,071 | $ 59,231 | $ 47,698 | $ 68,170 |
Cost of goods sold | 8,770 | 5,931 | 6,531 | 5,337 | 3,867 | 4,865 | 4,467 | 7,804 | 26,569 | 21,003 | 29,934 |
Operating expenses | 5,408 | 2,461 | 2,214 | 2,188 | 2,254 | 2,314 | 2,805 | 2,739 | 12,271 | 10,112 | 12,470 |
Net income (loss) | $ 12,441 | $ (95) | $ (2,349) | $ 382 | $ 2,265 | $ 1,796 | $ 726 | $ 203 | $ 10,379 | $ 4,990 | $ 7,556 |
Earnings per share, basic | $ 0.40 | $ (0.11) | $ 0.02 | $ 0.10 | $ 0.08 | $ 0.03 | $ 0.01 | $ 0.43 | $ 0.23 | $ 0.34 | |
Earnings per share, diluted | $ 0.40 | $ (0.11) | $ 0.01 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.01 | $ 0.42 | $ 0.19 | $ 0.29 | |
Weighted average common shares outstanding | 30,952,000 | 22,189,000 | 22,169,000 | 22,135,000 | 22,114,000 | 22,112,000 | 22,092,000 | 22,039,000 | 24,322,264 | 22,114,400 | 22,039,966 |
Diluted | 31,210,000 | 22,189,000 | 22,169,000 | 26,410,000 | 26,400,000 | 26,388,000 | 26,410,000 | 26,411,000 | 24,579,390 | 26,400,000 | 26,242,952 |
Quarterly Financial Data (Una82
Quarterly Financial Data (Unaudited) - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |
Performance-based bonus expense | $ 1,908 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Thousands, t in Millions | Jul. 01, 2017$ / sharesshares | Feb. 15, 2017USD ($)$ / sharesshares | Jan. 30, 2017t | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares |
Subsequent Event [Line Items] | |||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock issued during period shares new issues and stock sold by selling shareholders | shares | 5,950,000 | ||||
Common stock, par value | $ / shares | $ 0.001 | ||||
Purchase price per share | $ / shares | 17.50 | $ 17.50 | |||
Share price, net of underwriting discount | $ / shares | $ 16.58125 | ||||
Proceeds from equity issuance, net, shares | shares | 1,500,000 | ||||
Stock sold by selling shareholders | shares | 4,450,000 | ||||
Common stock sold by underwriters from exercising option | shares | 892,500 | ||||
Proceeds from issuance of common stock | $ | $ 0 | ||||
Subsequent Event | Maximum | |||||
Subsequent Event [Line Items] | |||||
Raw frac sand produced per year | t | 4.4 |