Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 28, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38390 | |
Entity Registrant Name | Cactus, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 35-2586106 | |
Entity Address, Address Line One | 920 Memorial City Way, Suite 300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | 713 | |
Local Phone Number | 626-8800 | |
Title of 12(g) Security | Class A Common Stock, par value $0.01 | |
Trading Symbol | WHD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001699136 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 47,400,617 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 27,957,699 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 230,202 | $ 202,603 |
Accounts receivable, net of allowance of $1,430 and $837, respectively | 95,236 | 87,865 |
Inventories | 100,301 | 113,371 |
Prepaid expenses and other current assets | 9,535 | 11,044 |
Total current assets | 435,274 | 414,883 |
Property and equipment, net | 162,871 | 161,748 |
Operating lease right-of-use assets, net | 24,872 | 26,561 |
Goodwill | 7,824 | 7,824 |
Deferred tax asset, net | 217,916 | 222,545 |
Other noncurrent assets | 1,338 | 1,403 |
Total assets | 850,095 | 834,964 |
Current liabilities | ||
Accounts payable | 34,476 | 40,957 |
Accrued expenses and other current liabilities | 19,275 | 22,067 |
Current portion of liability related to tax receivable agreement | 14,630 | 14,630 |
Finance lease obligations, current portion | 6,498 | 6,735 |
Operating lease liabilities, current portion | 6,535 | 6,737 |
Total current liabilities | 81,414 | 91,126 |
Deferred tax liability, net | 1,511 | 1,348 |
Liability related to tax receivable agreement, net of current portion | 201,902 | 201,902 |
Finance lease obligations, net of current portion | 4,033 | 3,910 |
Operating lease liabilities, net of current portion | 18,809 | 20,283 |
Total liabilities | 307,669 | 318,569 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value, 10,000 shares authorized, none issued and outstanding | ||
Additional paid-in capital | 195,381 | 194,456 |
Retained earnings | 147,670 | 132,990 |
Accumulated other comprehensive loss | (1,067) | (452) |
Total stockholders' equity attributable to Cactus Inc. | 342,458 | 327,466 |
Non-controlling interest | 199,968 | 188,929 |
Total stockholders' equity | 542,426 | 516,395 |
Total liabilities and equity | 850,095 | 834,964 |
Class A Common Stock | ||
Stockholders' equity | ||
Common stock, $0.01 par value | 474 | 472 |
Class B Common Stock | ||
Stockholders' equity | ||
Common stock, $0.01 par value |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts receivable | $ 1,430 | $ 837 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 47,398 | 47,159 |
Common stock, shares outstanding | 47,398 | 47,159 |
Class B Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 215,000 | 215,000 |
Common stock, shares issued | 27,958 | 27,958 |
Common stock, shares outstanding | 27,958 | 27,958 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 154,139 | $ 158,875 |
Costs and expenses | ||
Selling, general and administrative expenses | 13,662 | 12,668 |
Severance expenses | 1,007 | |
Total costs and expenses | 113,954 | 110,383 |
Income from operations | 40,185 | 48,492 |
Interest income (expense), net | 410 | 23 |
Other income (expense), net | (1,042) | |
Income before income taxes | 40,595 | 47,473 |
Income tax expense | 7,497 | (973) |
Net income | 33,098 | 48,446 |
Less: net income attributable to non-controlling interest | 14,115 | 21,639 |
Net income attributable to Cactus Inc. | 18,983 | 26,807 |
Product revenue | ||
Revenues | ||
Total revenues | 87,031 | 86,640 |
Costs and expenses | ||
Cost of revenue | 56,135 | 53,018 |
Rental revenue | ||
Revenues | ||
Total revenues | 36,163 | 38,497 |
Costs and expenses | ||
Cost of revenue | 19,339 | 17,791 |
Field service and other revenue | ||
Revenues | ||
Total revenues | 30,945 | 33,738 |
Costs and expenses | ||
Cost of revenue | $ 23,811 | $ 26,906 |
Class A Common Stock | ||
Costs and expenses | ||
Earnings per Class A share - basic | $ 0.40 | $ 0.69 |
Earnings per Class A share - diluted | $ 0.40 | $ 0.59 |
Weighted average Class A shares outstanding - basic | 47,270 | 38,719 |
Weighted average Class A shares outstanding - diluted | 75,395 | 75,246 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 33,098 | $ 48,446 |
Foreign currency translation adjustments | (1,083) | 270 |
Comprehensive income | 32,015 | 48,716 |
Less: comprehensive income attributable to non-controlling interest | 13,647 | 21,786 |
Comprehensive income attributable to Cactus Inc. | $ 18,368 | $ 26,930 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Class A Common StockCommon stock | Class B Common StockCommon stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total |
Balance at the beginning of the period at Dec. 31, 2018 | $ 377 | $ 126,418 | $ 51,683 | $ (820) | $ 184,670 | $ 362,328 | |
Balance at the beginning of the period (shares) at Dec. 31, 2018 | 37,654 | 37,236 | |||||
Statement of Stockholders'/Members' Equity | |||||||
Adjustments to prior periods | 14,035 | 488 | (14,523) | ||||
Member distribution | (235) | (235) | |||||
Effect of CW Unit redemptions | $ 85 | 43,899 | (50) | (43,934) | |||
Effect of CW Unit redemptions (in shares) | 8,518 | (8,518) | |||||
Adjustment to deferred tax asset from CW Unit redemptions | (8,232) | (8,232) | |||||
Additional paid-in capital related to tax receivable agreement | 13,580 | 13,580 | |||||
Equity award vestings | $ 2 | (1,474) | (1,472) | ||||
Equity award vestings (in shares) | 219 | ||||||
Other comprehensive income (loss) | 123 | 147 | 270 | ||||
Stock-based compensation | 1,676 | 1,676 | |||||
Net income | 26,807 | 21,639 | 48,446 | ||||
Balance at the end of the period at Mar. 31, 2019 | $ 464 | 189,902 | 78,490 | (259) | 147,764 | 416,361 | |
Balance at the end of the period (shares) at Mar. 31, 2019 | 46,391 | 28,718 | |||||
Balance at the beginning of the period at Dec. 31, 2019 | $ 472 | 194,456 | 132,990 | (452) | 188,929 | 516,395 | |
Balance at the beginning of the period (shares) at Dec. 31, 2019 | 47,159 | 27,958 | |||||
Statement of Stockholders'/Members' Equity | |||||||
Member distribution | (2,203) | (2,203) | |||||
Additional paid-in capital related to tax receivable agreement | (94) | (94) | |||||
Equity award vestings | $ 2 | (221) | (1,138) | (1,357) | |||
Equity award vestings (in shares) | 239 | ||||||
Other comprehensive income (loss) | (615) | (468) | (1,083) | ||||
Stock-based compensation | 1,240 | 733 | 1,973 | ||||
Cash dividends declared | (4,303) | (4,303) | |||||
Net income | 18,983 | 14,115 | 33,098 | ||||
Balance at the end of the period at Mar. 31, 2020 | $ 474 | $ 195,381 | $ 147,670 | $ (1,067) | $ 199,968 | $ 542,426 | |
Balance at the end of the period (shares) at Mar. 31, 2020 | 47,398 | 27,958 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |
Cash dividend declared | $ 0.09 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 33,098 | $ 48,446 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,980 | 8,881 |
Debt discount and deferred financing cost amortization | 42 | 42 |
Stock-based compensation | 1,973 | 1,676 |
Provision for bad debts | 625 | |
Inventory obsolescence | 1,353 | 224 |
Loss on disposal of assets | 961 | 863 |
Deferred income taxes | 4,848 | (2,796) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,244) | (15,597) |
Inventories | 8,306 | (8,875) |
Prepaid expenses and other assets | 1,497 | 2,156 |
Accounts payable | (8,142) | 192 |
Accrued expenses and other liabilities | (2,136) | (973) |
Net cash provided by operating activities | 45,161 | 34,239 |
Cash flows from investing activities | ||
Capital expenditures and other | (9,441) | (14,655) |
Proceeds from sale of assets | 1,103 | 808 |
Net cash used in investing activities | (8,338) | (13,847) |
Cash flows from financing activities | ||
Payments on finance leases | (1,764) | (1,846) |
Dividends paid to Class A common stock shareholders | (4,281) | |
Distributions to members | (2,203) | (235) |
Repurchase of shares | (1,356) | (1,474) |
Net cash used in financing activities | (9,604) | (3,555) |
Effect of exchange rate changes on cash and cash equivalents | 380 | 438 |
Net increase in cash and cash equivalents | 27,599 | 17,275 |
Cash and cash equivalents | ||
Beginning of period | 202,603 | 70,841 |
End of period | 230,202 | 88,116 |
Supplemental Disclosures of Cash Flow Information | ||
Property and equipment acquired under finance leases | 1,896 | 216 |
Property and equipment in payables | $ 3,767 | $ 3,643 |
Preparation of Interim Financia
Preparation of Interim Financial Statements and Other Items | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Preparation of Interim Financial Statements and Other Items | 1. Preparation of Interim Financial Statements and Other Items Basis of Presentation The financial statements presented in this report represent the consolidation of Cactus Inc. (“Cactus Inc.”) and its subsidiaries (“the Company”), including Cactus Wellhead, LLC (“Cactus LLC”). Cactus Inc. is a holding company whose only material asset is an equity interest consisting of units representing limited liability company interests in Cactus LLC (“CW Units”). Cactus Inc. is the sole managing member of Cactus LLC and operates and controls all of the business and affairs of Cactus LLC and conducts its business through Cactus LLC and its subsidiaries. As a result, Cactus Inc. consolidates the financial results of Cactus LLC and its subsidiaries and reports a non-controlling interest related to the portion of CW Units not owned by Cactus Inc., which reduces net income attributable to holders of Cactus Inc.’s Class A common stock, par value $0.01 per share (“Class A common stock”). Except as otherwise indicated or required by the context, all references to “Cactus,” “we,” “us” and “our” refer to Cactus Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these consolidated financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our Annual Report on Form 10-K for the year ended December 31, 2019. The consolidated financial statements include all adjustments, which are of a normal recurring nature, unless otherwise disclosed, necessary for a fair statement of the consolidated financial statements for the interim periods. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. Use of Estimates In preparing our consolidated financial statements in conformity with GAAP, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with a high degree of precision from available data or is not otherwise capable of being readily calculated based on accepted methodologies. In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements Standards Adopted Effective January 1, 2020, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance changed the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. The new guidance replaced the prior methodology for recognizing credit losses when it is probable that a loss has been incurred with an expected loss model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of an asset. The allowance for credit losses under the new guidance represents the portion of the asset’s amortized cost basis that we do not expect to collect over the asset’s contractual life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Adoption of the standard did not impact our consolidated financial statements other than certain expanded disclosures. See further discussion and expanded disclosures at Note 3. We also adopted FASB ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) effective January 1, 2020. The new standard simplified the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Under the new standard, an entity performs its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Adoption of this standard did not impact our consolidated financial statements. |
Concentrations Risks and Uncert
Concentrations Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2020 | |
Concentrations, Risks and Uncertainties | |
Concentrations, Risks and Uncertainties | 2. Concentrations, Risks and Uncertainties Significant Customers Our customers are engaged in the oil and natural gas exploration and production business primarily in the U.S. as well as Australia. Our receivables are spread over a number of customers, a majority of which are operators and suppliers to the oil and natural gas industry. For the three months ended March 31, 2020 and 2019, one customer represented 10% and 12%, respectively, of consolidated revenues, and no other customers represented 10% or more of our consolidated revenues during the comparative periods. Significant Vendors We purchase a significant portion of supplies, equipment and machined components from a single vendor located in China. For the three months ended March 31, 2020 and 2019, purchases from this vendor totaled $2.9 million and $12.7 million, respectively. These figures represent approximately 7% and 20% for the respective periods of our total third-party vendor purchases of raw materials, finished products, equipment, machining and other services. Amounts due to the vendor included in accounts payable in the consolidated balance sheets as of March 31, 2020 and December 31, 2019 totaled $1.9 million and $4.3 million, respectively. Low Oil Prices and the Coronavirus (COVID-19) The significant decline in oil demand due to COVID-19 coupled with the instability of oil prices caused by geopolitical issues and production levels, as well as limited availability of storage capacity have resulted in our customers announcing significant reductions to their capital expenditure budgets for 2020. Management’s expectation is that demand for our products and services will be severely impacted for the duration of 2020 and potentially beyond; however, we are currently unable to estimate the full impact to our business, how long this significant drop in demand will last or the depth of the decline. In an effort to offset the reduction in revenues resulting from the weakened macroeconomic environment, we implemented certain cost reduction measures beginning in March 2020. These measures included, but were not limited to, the following: ● 50% reduction to our Chief Executive Officer’s base salary; ● Salary reductions ranging from 25% to 50% for our other named executive officers; ● Salary and wage reductions for the remaining U.S. workforce ranging from 2% to 15% depending on salary and position; ● Reduction in board member compensation by 25%; and ● Reduction of 277 U.S. employee positions. We have also reduced our planned capital expenditures for 2020 and implemented additional headcount reductions in April 2020. See further discussion of the April workforce reductions at Note 12. Due to the depressed oil price environment, our reduced cash flow projections resulting from expectations of reduced sales and significant declines in our market capitalization, we assessed whether our long-lived assets and goodwill may have been impaired as of March 31, 2020. We performed quantitative impairment tests using management’s current projections that are subject to various risks and uncertainties of revenues, expenses and cash flows. Our goodwill impairment assessment also includes assumptions regarding discount rates, terminal value and control premiums. Estimates of future cash flows and fair value are highly subjective and inherently imprecise. These estimates can change materially from period to period based on many factors. Accordingly, if conditions change in the future, we may record impairment losses, which could be material to any particular reporting period. Although we determined based on our current impairment assessments that our long-lived assets and goodwill were not impaired as of March 31, 2020, we can provide no assurance that we will not incur an impairment loss in the future. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable and Allowance for Credit Losses | |
Accounts Receivable and Allowance for Credit Losses | 3. Accounts Receivable and Allowance for Credit Losses We extend credit to customers in the normal course of business. Our customers are predominantly oil and gas companies in the U.S. Our receivables are short-term in nature and typically due in 30 to 45 days. We do not accrue interest on delinquent receivables. Accounts receivable includes amounts billed and currently due from customers and unbilled amounts for products delivered and services performed for which billings have not yet been submitted to the customers. Total unbilled revenue included in accounts receivable as of March 31, 2020 and December 31, 2019 was $21.5 million and $23.8 million, respectively. We maintain an allowance for credit losses to provide for the amount of receivables we do not expect to collect. In our determination of the allowance for credit losses, we pool receivables with similar risk characteristics based on customer size, credit ratings, payment history, bankruptcy status and other factors known to us and apply an expected credit loss percentage. The expected credit loss percentage is determined using historical loss data adjusted for current conditions and forecasts of future economic conditions. Accounts deemed uncollectible are applied against the allowance for credit losses. The following is a rollforward of our allowance for credit losses. The increase in the allowance during the three months ended March 31, 2020 reflects the estimated impact of the current economic environment on our receivable balance. Balance at Balance at Beginning of Expense End of Period (recovery) Write off Other Period Three Months Ended March 31, 2020 $ 837 $ 625 $ (32) $ — $ 1,430 Three Months Ended March 31, 2019 576 — — 2 578 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Inventories | 4. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using standard cost (which approximates average cost) and weighted average methods. Costs include an application of related direct labor and overhead cost. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Reserves are made for excess and obsolete items based on a range of factors, including age, usage and technological or market changes that may impact demand for those products. Inventories consist of the following: March 31, December 31, 2020 2019 Raw materials $ 1,702 $ 1,538 Work-in-progress 3,857 4,619 Finished goods 94,742 107,214 $ 100,301 $ 113,371 |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2020 | |
Property and Equipment, net | |
Property and Equipment, net | 5. Property and Equipment, net Property and equipment are stated at cost. We manufacture or construct most of our own rental assets. During the manufacture of these assets, they are reflected as construction in progress until complete. Property and equipment consists of the following: March 31, December 31, 2020 2019 Land $ 3,203 $ 3,203 Buildings and improvements 21,812 21,655 Machinery and equipment 55,826 55,494 Vehicles under finance lease 24,936 24,275 Rental equipment 169,307 161,156 Furniture and fixtures 1,762 1,684 Computers and software 3,475 3,317 Gross property and equipment 280,321 270,784 Less: Accumulated depreciation (130,853) (123,397) Net property and equipment 149,468 147,387 Construction in progress 13,403 14,361 Total property and equipment, net $ 162,871 $ 161,748 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Debt | 6. Debt We had no debt outstanding as of March 31, 2020 and December 31, 2019. On August 21, 2018, Cactus LLC entered into a five-year senior secured asset-based revolving credit facility with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent for such lenders and as an issuing bank and swingline lender (the “ABL Credit Facility”). The ABL Credit Facility provides for $75.0 million in revolving commitments, up to $15.0 million of which is available for the issuance of letters of credit. The ABL Credit Facility matures on August 21, 2023. The maximum amount that Cactus LLC may borrow under the ABL Credit Facility is subject to a borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. At March 31, 2020, in accordance with the terms of our borrowing base, we had access to the full $75.0 million revolving credit facility capacity. At March 31, 2020 and December 31, 2019, although there were no borrowings outstanding under the ABL Credit Facility, the applicable margin on our Eurodollar borrowings was 1.5% plus an adjusted base rate of one- or three-month LIBOR. We were in compliance with all covenants under the ABL Credit Facility as of March 31, 2020. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue | |
Revenue | 7. Revenue The majority of our revenues are derived from short-term contracts for fixed consideration. Product sales generally do not include right of return or other significant post-delivery obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenues are recognized when we satisfy a performance obligation by transferring control of the promised goods or providing services to our customers at a point in time, in an amount specified in the contract with our customer and that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our contracts with customers contain a single performance obligation to provide agreed upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. We do not incur any material costs of obtaining contracts. We do not adjust the amount of consideration per the contract for the effects of a significant financing component when we expect, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which is in substantially all cases. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 to 45 days. Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We treat shipping and handling associated with outbound freight as a fulfillment cost instead of as a separate performance obligation. We recognize the cost for the associated shipping and handling when incurred as an expense in cost of sales. We disaggregate revenue into three categories: product revenues, rental revenues and field service and other revenues. We have predominately domestic operations, with a small amount of sales being generated in Australia. The following table presents our revenues disaggregated by category: Three Months Ended March 31, 2020 2019 Product revenue $ 87,031 57 % $ 86,640 55 % Rental revenue 36,163 23 % 38,497 24 % Field service and other revenue 30,945 20 % 33,738 21 % Total revenue $ 154,139 100 % $ 158,875 100 % At March 31, 2020, we had a deferred revenue balance of $1.5 million compared to the December 31, 2019 balance of $1.4 million. Deferred revenue represents our obligation to transfer products to or perform services for a customer for which we have received cash or billed in advance. The revenue that has been deferred will be recognized upon product delivery or as services are performed. As of March 31, 2020, we did not have any contracts with an original length of greater than a year from which revenue is expected to be recognized in the future related to performance obligations that are unsatisfied. |
Tax Receivable Agreement
Tax Receivable Agreement | 3 Months Ended |
Mar. 31, 2020 | |
Tax Receivable Agreement | |
Tax Receivable Agreement | 8. Tax Receivable Agreement (TRA) In connection with our initial public offering (“IPO”) in February 2018, we entered into the TRA with certain direct and indirect owners of Cactus LLC (the “TRA Holders”). The TRA generally provides for payment by Cactus Inc. to the TRA Holders of 85% of the net cash savings, if any, in U.S. federal, state and local income tax or franchise tax that Cactus Inc. actually realizes or is deemed to realize in certain circumstances. Cactus Inc. will retain the benefit of the remaining 15% of these net cash savings. The TRA liability is calculated by determining the tax basis subject to TRA (“tax basis”) and applying a blended tax rate to the basis differences and calculating the iterative impact. The blended tax rate consists of the U.S. federal income tax rate and an assumed combined state and local income tax rate driven by the apportionment factors applicable to each state. Subsequent changes to the measurement of the TRA liability are recognized in the statements of income as a component of other income (expense), net. As of March 31, 2020, the total liability from the TRA was $216.5 million with $14.6 million reflected in current liabilities based on the expected timing of our next payment. The payments under the TRA will not be conditional on a holder of rights under the TRA having a continued ownership interest in either Cactus LLC or Cactus Inc. The term of the TRA commenced upon completion of our IPO and will continue until all tax benefits that are subject to the TRA have been utilized or expired, unless we exercise our right to terminate the TRA. If we elect to terminate the TRA early (or it is terminated early due to certain mergers, asset sales, other forms of business combinations or other changes of control), our obligations under the TRA would accelerate and we would be required to make an immediate payment equal to the present value of the anticipated future payments to be made by us under the TRA and such payment is expected to be substantial. The calculation of anticipated future payments will be based upon certain assumptions and deemed events set forth in the TRA, including the assumptions that (i) we have sufficient taxable income to fully utilize the tax benefits covered by the TRA and (ii) any CW Units (other than those held by Cactus Inc.) outstanding on the termination date are deemed to be redeemed on the termination date. Any early termination payment may be made significantly in advance of the actual realization, if any, of the future tax benefits to which the termination payment relates. We may elect to defer payments due under the TRA if we do not have available cash to satisfy our payment obligations under the TRA. Any such deferred payments under the TRA generally will accrue interest from the due date for such payment until the payment date. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity | |
Equity | 9. Equity As of March 31, 2020, Cactus Inc. owned 62.9% of Cactus LLC as compared to 62.8% as of December 31, 2019. As of March 31, 2020, Cactus Inc. had outstanding 47.4 million shares of Class A common stock (representing 62.9% of the total voting power) and 28.0 million shares of Class B common stock (representing 37.1% of the total voting power). Redemptions of CW Units Pursuant to the First Amended and Restated Limited Liability Company Operating Agreement of Cactus Wellhead, LLC (the “Cactus Wellhead LLC Agreement”), holders of CW Units are entitled to redeem their CW Units, which results in additional Class A common stock outstanding. Since our IPO in February 2018, 32.6 million CW Units have been redeemed in exchange for shares of Class A common stock with 8.5 million occurring during the three months ended March 31, 2019 as part of a secondary offering. We did not receive any of the proceeds as part of the offering and incurred $1.0 million in offering expenses which were recorded in other expense, net, in the consolidated statement of income. No CW Unit redemptions occurred during the three months ended March 31, 2020. Dividends On January 30, 2020, our board of directors declared a cash dividend of $0.09 per share of Class A common stock of which $4.3 million was paid on March 19, 2020. A de minimis amount of dividends was paid during 2020 to restricted stock unit holders with accrued dividends that vested during the period. Member Distributions Distributions made by Cactus LLC are generally required to be made pro rata among all its members. For the three months ended March 31, 2020, Cactus LLC distributed $3.7 million to Cactus Inc. to fund the March 19, 2020 dividend payment and made pro rata distributions to its other members totaling $2.2 million over the same period. During the three months ended March 31, 2019, Cactus LLC made $0.2 million in pro rata distributions to its members other than Cactus Inc. Limitation of Members’ Liability Under the terms of the Cactus Wellhead LLC Agreement, the members of Cactus LLC are not obligated for debt, liabilities, contracts or other obligations of Cactus LLC. Profits and losses are allocated to members as defined in the Cactus LLC Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies We are involved in various disputes arising in the ordinary course of business. Management does not believe the outcome of these disputes will have a material adverse effect on our consolidated financial position or consolidated results of operations. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share | |
Earnings Per Share | 11. Earnings per Share Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued. We use the “if-converted” method to determine the potential dilutive effect of outstanding CW Units (and corresponding shares of outstanding Class B common stock), and the treasury stock method to determine the potential dilutive effect of unvested restricted stock units assuming that the proceeds will be used to purchase shares of Class A common stock. The following table summarizes the basic and diluted earnings per share calculations: Three Months Ended 2020 2019 Numerator: Net income attributable to Cactus Inc.—basic $ 18,983 $ 26,807 Net income attributable to non-controlling interest (1) 11,166 17,505 Net income attributable to Cactus Inc.—diluted (1) $ 30,149 $ 44,312 Denominator: Weighted average Class A shares outstanding—basic 47,270 38,719 Effect of dilutive shares (2) 28,125 36,527 Weighted average Class A shares outstanding—diluted (2) 75,395 75,246 Earnings per Class A share—basic $ 0.40 $ 0.69 Earnings per Class A share—diluted (1) (2) $ 0.40 $ 0.59 (1) Under the if-converted method for the three months ended March 31, 2020 and 2019, the numerator is adjusted in the calculation of diluted earnings per share to include $11.2 million and $17.5 million, respectively, attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26% and 24%, respectively. (2) Diluted earnings per share for the three months ended March 31, 2020 and 2019 includes 28.0 million and 36.3 million, respectively, weighted average shares of Class B common stock assuming conversion, plus the dilutive effect of restricted stock unit awards. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 12. Subsequent Events As a result of significant declines in sales activity, we notified 277 U.S. associates on March 31, 2020 that their position with the Company had been eliminated. Due to the fact that the outlook for our industry has continued to rapidly deteriorate, we reduced our U.S. workforce by an additional 212 associates in April. |
Preparation of Interim Financ_2
Preparation of Interim Financial Statements and Other Items (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Preparation Of Interim Financial Statements And Other Items | |
Basis of Presentation | Basis of Presentation The financial statements presented in this report represent the consolidation of Cactus Inc. (“Cactus Inc.”) and its subsidiaries (“the Company”), including Cactus Wellhead, LLC (“Cactus LLC”). Cactus Inc. is a holding company whose only material asset is an equity interest consisting of units representing limited liability company interests in Cactus LLC (“CW Units”). Cactus Inc. is the sole managing member of Cactus LLC and operates and controls all of the business and affairs of Cactus LLC and conducts its business through Cactus LLC and its subsidiaries. As a result, Cactus Inc. consolidates the financial results of Cactus LLC and its subsidiaries and reports a non-controlling interest related to the portion of CW Units not owned by Cactus Inc., which reduces net income attributable to holders of Cactus Inc.’s Class A common stock, par value $0.01 per share (“Class A common stock”). Except as otherwise indicated or required by the context, all references to “Cactus,” “we,” “us” and “our” refer to Cactus Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these consolidated financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read together with our Annual Report on Form 10-K for the year ended December 31, 2019. The consolidated financial statements include all adjustments, which are of a normal recurring nature, unless otherwise disclosed, necessary for a fair statement of the consolidated financial statements for the interim periods. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | Use of Estimates In preparing our consolidated financial statements in conformity with GAAP, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with a high degree of precision from available data or is not otherwise capable of being readily calculated based on accepted methodologies. In some cases, these estimates are particularly difficult to determine, and we must exercise significant judgment. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standards Adopted Effective January 1, 2020, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance changed the measurement of credit losses on financial assets measured at amortized cost, including but not limited to trade receivables. The new guidance replaced the prior methodology for recognizing credit losses when it is probable that a loss has been incurred with an expected loss model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of an asset. The allowance for credit losses under the new guidance represents the portion of the asset’s amortized cost basis that we do not expect to collect over the asset’s contractual life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Adoption of the standard did not impact our consolidated financial statements other than certain expanded disclosures. See further discussion and expanded disclosures at Note 3. We also adopted FASB ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) effective January 1, 2020. The new standard simplified the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Under the new standard, an entity performs its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Adoption of this standard did not impact our consolidated financial statements. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable and Allowance for Credit Losses | |
Schedule of rollforward of allowance for credit losses | Balance at Balance at Beginning of Expense End of Period (recovery) Write off Other Period Three Months Ended March 31, 2020 $ 837 $ 625 $ (32) $ — $ 1,430 Three Months Ended March 31, 2019 576 — — 2 578 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Summary of inventories | March 31, December 31, 2020 2019 Raw materials $ 1,702 $ 1,538 Work-in-progress 3,857 4,619 Finished goods 94,742 107,214 $ 100,301 $ 113,371 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property and Equipment, net | |
Schedule of property and equipment net | March 31, December 31, 2020 2019 Land $ 3,203 $ 3,203 Buildings and improvements 21,812 21,655 Machinery and equipment 55,826 55,494 Vehicles under finance lease 24,936 24,275 Rental equipment 169,307 161,156 Furniture and fixtures 1,762 1,684 Computers and software 3,475 3,317 Gross property and equipment 280,321 270,784 Less: Accumulated depreciation (130,853) (123,397) Net property and equipment 149,468 147,387 Construction in progress 13,403 14,361 Total property and equipment, net $ 162,871 $ 161,748 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue | |
Revenues disaggregated by category | Three Months Ended March 31, 2020 2019 Product revenue $ 87,031 57 % $ 86,640 55 % Rental revenue 36,163 23 % 38,497 24 % Field service and other revenue 30,945 20 % 33,738 21 % Total revenue $ 154,139 100 % $ 158,875 100 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share | |
Summary of basic and diluted earnings per share | The following table summarizes the basic and diluted earnings per share calculations: Three Months Ended 2020 2019 Numerator: Net income attributable to Cactus Inc.—basic $ 18,983 $ 26,807 Net income attributable to non-controlling interest (1) 11,166 17,505 Net income attributable to Cactus Inc.—diluted (1) $ 30,149 $ 44,312 Denominator: Weighted average Class A shares outstanding—basic 47,270 38,719 Effect of dilutive shares (2) 28,125 36,527 Weighted average Class A shares outstanding—diluted (2) 75,395 75,246 Earnings per Class A share—basic $ 0.40 $ 0.69 Earnings per Class A share—diluted (1) (2) $ 0.40 $ 0.59 (1) Under the if-converted method for the three months ended March 31, 2020 and 2019, the numerator is adjusted in the calculation of diluted earnings per share to include $11.2 million and $17.5 million, respectively, attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26% and 24%, respectively. (2) Diluted earnings per share for the three months ended March 31, 2020 and 2019 includes 28.0 million and 36.3 million, respectively, weighted average shares of Class B common stock assuming conversion, plus the dilutive effect of restricted stock unit awards. |
Preparation of Interim Financ_3
Preparation of Interim Financial Statements and Other Items (Details) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Class A Common Stock | ||
Organization and Nature of Operations | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Class B Common Stock | ||
Organization and Nature of Operations | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Concentrations Risks and Unce_2
Concentrations Risks and Uncertainties (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2020USD ($)position | Mar. 31, 2020USD ($)positioncustomer | Mar. 31, 2019USD ($)customer | Dec. 31, 2019USD ($) | |
Customer | Total revenues | ||||
Concentrations, Risks and Uncertainties | ||||
Number of Customers | customer | 1 | 1 | ||
Concentration of risk (as a percent) | 10.00% | 12.00% | ||
Supplier concentration | Purchases | ||||
Concentrations, Risks and Uncertainties | ||||
Concentration of risk (as a percent) | 7.00% | 20.00% | ||
Purchases from the vendor | $ 2.9 | $ 12.7 | ||
Accounts Payable | $ 1.9 | $ 1.9 | $ 4.3 | |
Low Oil Prices And The Coronavirus (COVID-19) [Member] | ||||
Concentrations, Risks and Uncertainties | ||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 277 | 277 | ||
Low Oil Prices And The Coronavirus (COVID-19) [Member] | Chief Executive Officer [Member] | ||||
Concentrations, Risks and Uncertainties | ||||
Reduction To Salary | 50.00% | |||
Low Oil Prices And The Coronavirus (COVID-19) [Member] | Executive officers | Maximum | ||||
Concentrations, Risks and Uncertainties | ||||
Reduction To Salary | 50.00% | |||
Low Oil Prices And The Coronavirus (COVID-19) [Member] | Executive officers | Minimum | ||||
Concentrations, Risks and Uncertainties | ||||
Reduction To Salary | 25.00% | |||
Low Oil Prices And The Coronavirus (COVID-19) [Member] | United States Workforce [Member] | Maximum | ||||
Concentrations, Risks and Uncertainties | ||||
Reduction To Salary | 15.00% | |||
Low Oil Prices And The Coronavirus (COVID-19) [Member] | United States Workforce [Member] | Minimum | ||||
Concentrations, Risks and Uncertainties | ||||
Reduction To Salary | 2.00% | |||
Low Oil Prices And The Coronavirus (COVID-19) [Member] | Board of Directors | ||||
Concentrations, Risks and Uncertainties | ||||
Reduction To Compensation | 25.00% |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts Receivable | |||
Unbilled revenue | $ 21,500 | $ 23,800 | |
Allowance for credit losses | |||
Balance at Beginning of Period | 837 | $ 576 | |
Expense (recovery) | 625 | ||
Write off | (32) | ||
Other | 2 | ||
Balance at End of Period | $ 1,430 | $ 578 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Summary of inventories | ||
Raw materials | $ 1,702 | $ 1,538 |
Work-in-progress | 3,857 | 4,619 |
Finished goods | 94,742 | 107,214 |
Total inventory | $ 100,301 | $ 113,371 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 280,321 | $ 270,784 |
Less: Accumulated depreciation | (130,853) | (123,397) |
Net property and equipment | 149,468 | 147,387 |
Total property and equipment, net | 162,871 | 161,748 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 3,203 | 3,203 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 21,812 | 21,655 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 55,826 | 55,494 |
Finance lease right-of-use asset | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 24,936 | 24,275 |
Rental equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 169,307 | 161,156 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 1,762 | 1,684 |
Computers and software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 3,475 | 3,317 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 13,403 | $ 14,361 |
Debt - Credit agreement (Detail
Debt - Credit agreement (Details) - USD ($) $ in Millions | Aug. 21, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term Debt | |||
Long-term debt outstanding | $ 0 | $ 0 | |
One-month LIBOR | |||
Long-term Debt | |||
Applicable margin rate (as a percent) | 1.50% | 1.50% | |
Variable reference rate | one-month LIBOR | one-month LIBOR | |
Three-month LIBOR | |||
Long-term Debt | |||
Applicable margin rate (as a percent) | 1.50% | 1.50% | |
Variable reference rate | three-month LIBOR | three-month LIBOR | |
ABL Credit Facility | |||
Long-term Debt | |||
Long-term debt outstanding | $ 0 | $ 0 | |
Revolving credit facility available per borrowing base terms | $ 75 | ||
Cactus LLC | ABL Credit Facility | |||
Long-term Debt | |||
Debt term | 5 years | ||
Maximum borrowing capacity | $ 75 | ||
Cactus LLC | Letters of credit | |||
Long-term Debt | |||
Maximum borrowing capacity | $ 15 |
Revenue - Disaggregated by cate
Revenue - Disaggregated by category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 154,139 | $ 158,875 |
Revenue as a percentage | 100.00% | 100.00% |
Product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 87,031 | $ 86,640 |
Revenue as a percentage | 57.00% | 55.00% |
Rental revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 36,163 | $ 38,497 |
Revenue as a percentage | 23.00% | 24.00% |
Field service and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 30,945 | $ 33,738 |
Revenue as a percentage | 20.00% | 21.00% |
Revenue - Contracts with custom
Revenue - Contracts with customers (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Contract Balances | ||
Deferred revenue | $ 1.5 | $ 1.4 |
Tax Receivable Agreement (Detai
Tax Receivable Agreement (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Feb. 28, 2018 | Mar. 31, 2020 | Dec. 31, 2019 | |
Tax Receivable Agreement | |||
Tax savings payable to TRA Holders (as a percent) | 85.00% | ||
Tax savings benefit recorded as APIC (as a percent) | 15.00% | ||
Total TRA liability | $ 216,500 | ||
Tax Receivable Agreement Liability Current | $ 14,630 | $ 14,630 |
Equity - Redemptions and Divide
Equity - Redemptions and Dividends (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 19, 2020 | Jan. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2019 |
Equity | ||||||
Dividends declared per common share | $ 0.09 | |||||
CACTUS INC | ||||||
Equity | ||||||
Cash distributions to unit holders | $ 3.7 | |||||
CW Unit Holders other than Cactus, Inc. | ||||||
Equity | ||||||
Cash distributions to unit holders | $ 2.2 | $ 0.2 | ||||
Cactus LLC | ||||||
Equity | ||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 62.90% | 62.80% | ||||
March 2019 Secondary Offering | ||||||
Equity | ||||||
Offering expenses | $ 1 | $ 1 | ||||
Class A Common Stock | ||||||
Equity | ||||||
Common Stock, Shares, Outstanding | 47,398 | 47,159 | ||||
Shares Outstanding Per Class As Percent Of Total | 62.90% | |||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||
Dividends declared per common share | $ 0.09 | |||||
Dividend paid | $ 4.3 | |||||
Class A Common Stock | CW Units Redeemed For Class A Common Stock [Member] | ||||||
Equity | ||||||
CW Unit redemptions | 8,500 | 32,600 | ||||
Class B Common Stock | ||||||
Equity | ||||||
Common Stock, Shares, Outstanding | 27,958 | 27,958 | ||||
Shares Outstanding Per Class As Percent Of Total | 37.10% | |||||
Common stock, par value | $ 0.01 | $ 0.01 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income attributable to Cactus Inc. | $ 18,983 | $ 26,807 |
Net income attributable to non-controlling interest (1) | 11,166 | 17,505 |
Net income attributable to Cactus Inc. - diluted (1) | $ 30,149 | $ 44,312 |
Denominator: | ||
Effect of dilutive shares (2) | 28,125 | 36,527 |
After-tax income attributable to non-controlling interest | $ 11,200 | $ 17,500 |
Corporate effective interest rate, if-converted method | 26.00% | 24.00% |
Class A Common Stock | ||
Denominator: | ||
Weighted average Class A Shares Outstanding - basic | 47,270 | 38,719 |
Weighted average Class A Shares Outstanding - diluted (2) | 75,395 | 75,246 |
Earnings per Class A share - basic | $ 0.40 | $ 0.69 |
Earnings per Class A Share - diluted (1) (2) | $ 0.40 | $ 0.59 |
Class B Common Stock | ||
Denominator: | ||
Effect of dilutive shares (2) | 28,000 | 36,300 |
Subsequent Events (Details)
Subsequent Events (Details) - position | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | |
Low Oil Prices And The Coronavirus (COVID-19) [Member] | |||
Subsequent Event [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 277 | 277 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 212 |