Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | HUDSON TECHNOLOGIES INC /NY | ||
Entity Central Index Key | 925,528 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 307,604,835 | ||
Trading Symbol | HDSN | ||
Entity Common Stock, Shares Outstanding | 42,403,140 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 5,002 | $ 33,931 |
Trade accounts receivable - net | 14,831 | 4,797 |
Inventories | 172,485 | 68,601 |
Income tax receivable | 9,664 | 0 |
Prepaid expenses and other current assets | 6,934 | 847 |
Total current assets | 208,916 | 108,176 |
Property, plant and equipment, less accumulated depreciation | 30,461 | 7,532 |
Deferred tax asset | 0 | 2,532 |
Goodwill | 49,464 | 856 |
Intangible assets, less accumulated amortization | 32,419 | 3,299 |
Other assets | 184 | 75 |
Total Assets | 321,444 | 122,470 |
Current liabilities: | ||
Trade accounts payable | 10,885 | 5,110 |
Accrued expenses and other current liabilities | 15,221 | 2,888 |
Accrued payroll | 3,052 | 1,782 |
Income taxes payable | 0 | 322 |
Current maturities of long-term debt | 1,050 | 0 |
Short-term debt | 65,152 | 199 |
Total current liabilities | 95,360 | 10,301 |
Deferred tax liability | 1,473 | 0 |
Long-term debt, less current maturities, net of deferred financing costs | 101,158 | 152 |
Total Liabilities | 197,991 | 10,453 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding 42,398,140 and 41,465,820 | 424 | 415 |
Additional paid-in capital | 114,302 | 114,032 |
Retained earnings (Accumulated deficit) | 8,727 | (2,430) |
Total Stockholders' Equity | 123,453 | 112,017 |
Total Liabilities and Stockholders' Equity | $ 321,444 | $ 122,470 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 42,398,140 | 41,465,820 |
Common stock, outstanding | 42,398,140 | 41,465,820 |
Preferred Stock | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A Convertible Preferred Stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference value | $ 100 | $ 100 |
Preferred stock, shares authorized | 150,000 | 150,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Revenues | $ 140,380 | [1] | $ 105,481 | [1] | $ 79,722 |
Cost of sales | 102,396 | 74,395 | 61,233 | ||
Gross profit | 37,984 | [1] | 31,086 | [1] | 18,489 |
Operating expenses: | |||||
Selling, general and administrative | 21,745 | 11,651 | 9,796 | ||
Amortization | 1,107 | 488 | 512 | ||
Total operating expenses | 22,852 | [1] | 12,139 | [1] | 10,308 |
Operating income | 15,132 | [1] | 18,947 | [1] | 8,181 |
Other income (expense): | |||||
Interest expense | (3,156) | (1,118) | (776) | ||
Other income (expense) | 28 | (564) | 302 | ||
Total other income (expense) | (3,128) | [1] | (1,682) | [1] | (474) |
Income before income taxes | 12,004 | [1] | 17,265 | [1] | 7,707 |
Income tax expense | 847 | [1] | 6,628 | [1] | 2,944 |
Net income | $ 11,157 | [1] | $ 10,637 | [1] | $ 4,763 |
Net income per common share - Basic | $ 0.27 | [1] | $ 0.31 | [1] | $ 0.15 |
Net income per common share - Diluted | $ 0.26 | [1] | $ 0.3 | [1] | $ 0.14 |
Weighted average number of shares outstanding - Basic | 41,764,230 | [1] | 34,104,476 | [1] | 32,546,840 |
Weighted average number of shares outstanding - Diluted | 42,766,843 | [1] | 35,416,910 | [1] | 33,936,099 |
[1] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | |
Balance at Dec. 31, 2014 | $ 43,999 | $ 323 | $ 61,505 | $ (17,829) | |
Balance (in shares) at Dec. 31, 2014 | 32,312,276 | ||||
Issuance of common stock upon exercise of stock options and warrants | 460 | $ 5 | 455 | 0 | |
Issuance of common stock upon exercise of stock options and warrants (in shares) | 482,506 | ||||
Issuance of common stock for services | 30 | $ 0 | 30 | 0 | |
Issuance of common stock for services (in shares) | 9,835 | ||||
Value of share-based arrangements | 173 | $ 0 | 173 | 0 | |
Value of share-based arrangements (in shares) | 0 | ||||
Net income | 4,763 | $ 0 | 0 | 4,763 | |
Balance at Dec. 31, 2015 | 49,425 | $ 328 | 62,163 | (13,066) | |
Balance (in shares) at Dec. 31, 2015 | 32,804,617 | ||||
Sale of common stock | 48,356 | $ 74 | 48,282 | 0 | |
Sale of common stock (in shares) | 7,392,856 | ||||
Issuance of common stock upon exercise of stock options and warrants | 2,704 | $ 13 | 2,691 | 0 | |
Issuance of common stock upon exercise of stock options and warrants (in shares) | 1,251,199 | ||||
Excess tax benefits from exercise of stock options | 189 | $ 0 | 189 | 0 | |
Issuance of common stock for services | 105 | $ 0 | 105 | 0 | |
Issuance of common stock for services (in shares) | 17,148 | ||||
Value of share-based arrangements | 601 | $ 0 | 601 | 0 | |
Value of share-based arrangements (in shares) | 0 | ||||
Net income | 10,637 | [1] | $ 0 | 0 | 10,637 |
Balance at Dec. 31, 2016 | 112,017 | $ 415 | 114,032 | (2,430) | |
Balance (in shares) at Dec. 31, 2016 | 41,465,820 | ||||
Issuance of common stock upon exercise of stock options and warrants | 807 | $ 12 | 795 | 0 | |
Issuance of common stock upon exercise of stock options and warrants (in shares) | 1,207,729 | ||||
Tax withholdings related to net share settlements of stock option awards | (2,026) | $ (3) | (2,023) | 0 | |
Tax withholdings related to net share settlements of stock option awards (in shares) | (281,645) | ||||
Issuance of common stock for services | 47 | $ 0 | 47 | 0 | |
Issuance of common stock for services (in shares) | 6,236 | ||||
Value of share-based arrangements | 1,451 | $ 0 | 1,451 | 0 | |
Value of share-based arrangements (in shares) | 0 | ||||
Net income | 11,157 | [1] | $ 0 | 0 | 11,157 |
Balance at Dec. 31, 2017 | $ 123,453 | $ 424 | $ 114,302 | $ 8,727 | |
Balance (in shares) at Dec. 31, 2017 | 42,398,140 | ||||
[1] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Cash flows from operating activities: | |||||
Net income | $ 11,157 | [1] | $ 10,637 | [1] | $ 4,763 |
Adjustments to reconcile net income to cash provided (used) in operating activities: | |||||
Depreciation | 2,272 | 1,737 | 1,560 | ||
Amortization of intangible assets | 1,107 | 488 | 512 | ||
Amortization of step-up of basis in inventories | 833 | 0 | 0 | ||
Allowance for doubtful accounts | 136 | 21 | 99 | ||
Amortization of deferred finance cost | 218 | 154 | 75 | ||
Value of share-based payment arrangements | 1,498 | 706 | 203 | ||
Excess tax benefits from stock option exercise | 0 | (189) | 0 | ||
Deferred tax expense | 4,005 | 1,080 | 2,768 | ||
Other non cash (income) expenses | 0 | 564 | (302) | ||
Changes in assets and liabilities (net of acquisitions): | |||||
Trade accounts receivable | 4,498 | (404) | (545) | ||
Inventories | (840) | (6,704) | (23,430) | ||
Prepaid and other assets | (3,039) | 523 | (465) | ||
Income taxes payable | (9,986) | 562 | 0 | ||
Accounts payable and accrued expenses | 6,026 | 173 | 4,259 | ||
Other liabilities | 481 | 0 | 0 | ||
Cash provided (used) in operating activities | 18,366 | 9,348 | (10,503) | ||
Cash flows from investing activities: | |||||
Payments for acquisitions | (208,969) | 0 | (2,424) | ||
Additions to patents | 0 | 0 | (12) | ||
Additions to property, plant and equipment | (1,022) | (1,733) | (889) | ||
Cash used in investing activities | (209,991) | (1,733) | (3,325) | ||
Cash flows from financing activities: | |||||
Net proceeds from issuances of common stock | 807 | 51,060 | 460 | ||
Tax payment withholdings related to settlements of stock option awards | (2,026) | 0 | 0 | ||
Excess tax benefits from stock-based compensation | 0 | 189 | 0 | ||
Payment of deferred financing costs | (5,385) | 0 | 0 | ||
(Repayments of) borrowing from short-term debt - net | 65,000 | (20,227) | 14,172 | ||
Proceeds from long-term debt | 105,000 | 61 | 292 | ||
Repayment of long-term debt | (172) | (4,349) | (328) | ||
Payment of deferred acquisition cost | (528) | (1,676) | (445) | ||
Cash provided by financing activities | 162,696 | 25,058 | 14,151 | ||
Increase (decrease) in cash and cash equivalents | (28,929) | 32,673 | 323 | ||
Cash and cash equivalents at beginning of period | 33,931 | 1,258 | 935 | ||
Cash and cash equivalents at end of period | 5,002 | 33,931 | 1,258 | ||
Supplemental disclosure of cash flow information: | |||||
Cash paid during period for interest | 2,028 | 964 | 701 | ||
Cash paid for income taxes | 6,829 | 4,985 | 0 | ||
Non cash investing activity: | |||||
Deferred acquisition cost | $ 0 | $ 0 | $ 1,982 | ||
[1] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Hudson Technologies, Inc., incorporated under the laws of New York on January 11, 1991, is a refrigerant services company providing innovative solutions to recurring problems within the refrigeration industry. The Company’s operations consist of one reportable segment. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at, a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, the Company’s SmartEnergy OPS TM On October 10, 2017, the Company and its wholly-owned subsidiary, Hudson Holdings, Inc. (“Holdings”) completed the acquisition (the “Acquisition”) from Airgas, Inc. (“Airgas”) of all of the outstanding stock of Airgas-Refrigerants, Inc., a Delaware corporation (“ARI”), and effective October 11, 2017, ARI’s name was changed to Aspen Refrigerants, Inc. At closing, Holdings paid net cash consideration to Airgas of approximately $ 209 The cash consideration paid by Holdings at closing was financed with available cash balances, plus $ 80 150 105 In preparing the accompanying consolidated financial statements, and in accordance with Accounting Standards Codification (“ASC”) 855-10 “Subsequent Events”, the Company’s management has evaluated subsequent events through the date that the financial statements were filed. In the opinion of management, all estimates and adjustments considered necessary for a fair presentation have been included and all such adjustments were normal and recurring. The consolidated financial statements represent all companies of which Hudson directly or indirectly has majority ownership or otherwise controls. Significant intercompany accounts and transactions have been eliminated. The Company's consolidated financial statements include the accounts of wholly-owned subsidiaries Hudson Holdings, Inc., Hudson Technologies Company and Aspen Refrigerants, Inc. The Company does not present a statement of comprehensive income as its comprehensive income is the same as its net income. The carrying values of financial instruments including trade accounts receivable and accounts payable approximate fair value at December 31, 2017 and December 31, 2016, because of the relatively short maturity of these instruments. The carrying value of debt approximates fair value, due to the variable rate nature of the debt, as of December 31, 2017 and December 31, 2016. Please see Note 2 for further details on fair value description and hierarchy of the Company’s deferred acquisition cost. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of temporary cash investments and trade accounts receivable. The Company maintains its temporary cash investments in highly-rated financial institutions and, at times, the balances exceed FDIC insurance coverage. The Company's trade accounts receivable are primarily due from companies throughout the United States. The Company reviews each customer's credit history before extending credit. The Company establishes an allowance for doubtful accounts based on factors associated with the credit risk of specific accounts, historical trends, and other information. The carrying value of the Company’s accounts receivable is reduced by the established allowance for doubtful accounts. The allowance for doubtful accounts includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve for the remaining accounts receivable balances. The Company adjusts its reserves based on factors that affect the collectability of the accounts receivable balances. For the year ended December 31, 2017, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 33 2.7 For the year ended December 31, 2016, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 30 For the year ended December 31, 2015, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 33 The loss of a principal customer or a decline in the economic prospects of and/or a reduction in purchases of the Company's products or services by any such customer could have a material adverse effect on the Company's operating results and financial position. Temporary investments with original maturities of ninety days or less are included in cash and cash equivalents. Inventories, consisting primarily of refrigerant products available for sale, are stated at the lower of cost, on a first-in first-out basis, or net realizable value. Where the market price of inventory is less than the related cost, the Company may be required to write down its inventory through a lower of cost or market adjustment, the impact of which would be reflected in cost of sales on the Consolidated Statements of Operations. Any such adjustment would be based on management’s judgment regarding future demand and market conditions and analysis of historical experience. Property, plant and equipment are stated at cost, including internally manufactured equipment. The cost to complete equipment that is under construction is not considered to be material to the Company's financial position. Provision for depreciation is recorded (for financial reporting purposes) using the straight-line method over the useful lives of the respective assets. Leasehold improvements are amortized on a straight-line basis over the shorter of economic life or terms of the respective leases. Costs of maintenance and repairs are charged to expense when incurred. Due to the specialized nature of the Company's business, it is possible that the Company's estimates of equipment useful life periods may change in the future. The Company has made acquisitions that included a significant amount of goodwill and other intangible assets. The Company applies the purchase method of accounting for acquisitions, which among other things, requires the recognition of goodwill (which represents the excess of the purchase price of the acquisition over the fair value of the net assets acquired and identified intangible assets). Goodwill is subject to an annual (or under certain circumstances more frequent) impairment test based on its estimated fair value. Other intangible assets that meet certain criteria are amortized over their estimated useful lives. Beginning in 2017, the Company adopted, on a prospective basis, ASU No. 2017-04, which simplified the method used to perform the annual, or interim, goodwill impairment testing. The Company performed the annual goodwill impairment assessment using a qualitative approach to determine whether it is more likely than not that the fair value of goodwill is less than its carrying value. In performing the qualitative assessment, the Company identified and considered the significance of relevant key factors, events, and circumstances that affect the fair value of its goodwill. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If the results of the qualitative assessment conclude that it is not more likely than not that the fair value of goodwill exceeds its carrying value, additional quantitative impairment testing is performed. An impairment charge would be recognized when the carrying amount exceeds the estimated fair value of a reporting unit. These impairment evaluations use many assumptions and estimates in determining an impairment loss, including certain assumptions and estimates related to future earnings. If the Company does not achieve its earnings objectives, the assumptions and estimates underlying these impairment evaluations could be adversely affected, which could result in an asset impairment charge that would negatively impact operating results. There were no impairment losses recognized in any of the three years ended December 31, 2017, 2016 or 2015. The cylinder deposit liability, which is included in Accrued expenses and other current liabilities on the Company’s Balance Sheet, represents the amount due to customers for the return of refillable cylinders. ARI charges its customers cylinder deposits upon the shipment of refrigerant gases that are contained in refillable cylinders. The amount charged to the customer by ARI approximates the cost of a new cylinder of the same size. Upon return of a cylinder, this liability is reduced. The cylinder deposit liability was assumed as part of the ARI acquisition and the balance was $ 9.8 Revenues are recorded upon completion of the service or the shipment of the product. The Company evaluates each sale to ensure collectability. In addition, each sale is based on an arrangement with the customer and the sales price to the customer is fixed. In July 2016 the Company was awarded, as prime contractor, a five-year contract, including a five-year renewal option, by the United States Defense Logistics Agency (“DLA”) for the management, supply, and sale of refrigerants, compressed gases, cylinders and related terms. Due to the contract containing multiple elements, the Company assessed the arrangement in accordance with Accounting Standards Codification (“ASC”) 605-25, Revenue Recognition: Multiple-Element Arrangements and accordingly revenue related to the sale of product is recognized at the time of product shipment, and service revenue is recognized on a straight-line basis over the term of the arrangement. Annual service revenue under the contract is approximately $ 2.4 Cost of sales is recorded based on the cost of products shipped or services performed and related direct operating costs of the Company's facilities. To the extent that the Company charges its customers shipping fees, such amounts are included as a component of revenue and the corresponding costs are included as a component of cost of sales. Years Ended December 31, 2017 2016 2015 (in thousands) Product and related sales $ 136,016 $ 101,344 $ 75,154 RefrigerantSide ® 4,364 4,137 4,568 Total $ 140,380 $ 105,481 $ 79,722 The Company is taxed at statutory corporate income tax rates after adjusting income reported for financial statement purposes for certain items. The current income tax expense (benefit) reflects the tax results of revenues and expenses currently taxable or deductible. The Company utilizes the asset and liability method of accounting for deferred income taxes, which provides for the recognition of deferred tax assets or liabilities, based on enacted tax rates and laws, for the differences between the financial and income tax reporting bases of assets and liabilities. The tax benefit associated with the Company's net operating loss carry forwards (“NOLs”) is recognized to the extent that the Company expects to realize future taxable income. As a result of a prior year “change in control”, as defined by the Internal Revenue Service, the Company’s ability to utilize its existing NOLs is subject to certain annual limitations. To the extent that the Company utilizes its NOLs, it will not pay tax on such income. However, to the extent that the Company’s net income, if any, exceeds the annual NOL limitation, it will pay income taxes based on the then existing statutory rates. In addition, certain states either do not allow or limit NOLs and as such the Company will be liable for certain state taxes. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“2017 Tax Act”), which lowered the federal statutory income tax rate from, generally, 35 21 1.4 As a result of an Internal Revenue Service audit, the 2013 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2017, the various states’ statutes of limitations remain open for tax years subsequent to 2010. The Company recognizes interest and penalties, if any, relating to income taxes as a component of the provision for income taxes. The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2017 and 2016, the Company had no uncertain tax positions. If dilutive, common equivalent shares (common shares assuming exercise of options and warrants) utilizing the treasury stock method are considered in the presentation of diluted earnings per share. Years ended December 31, 2017 2016 2015 Net income $ 11,157 $ 10,637 $ 4,763 Weighted average number of shares - basic 41,764,230 34,104,476 32,546,840 Shares underlying warrants 300,846 Shares underlying options 1,002,613 1,312,434 1,088,413 Weighted average number of shares outstanding diluted 42,766,843 35,416,910 33,936,099 During the years ended December 31, 2017, 2016 and 2015, certain options and warrants aggregating none, 73,034 106,290 The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the use of estimates and assumptions that affect the amounts reported in these financial statements and footnotes. The Company considers these accounting estimates to be critical in the preparation of the accompanying consolidated financial statements. The Company uses information available at the time the estimates are made. However, these estimates could change materially if different information or assumptions were used. Additionally, these estimates may not ultimately reflect the actual amounts of the final transactions that occur. The Company utilizes both internal and external sources to evaluate potential current and future liabilities for various commitments and contingencies. In the event that the assumptions or conditions change in the future, the estimates could differ from the original estimates. Several of the Company's accounting policies involve significant judgments, uncertainties and estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. To the extent that actual results differ from management's judgments and estimates, there could be a material adverse effect on the Company. On a continuous basis, the Company evaluates its estimates, including, but not limited to, those estimates related to its allowance for doubtful accounts, inventory reserves, and valuation allowance for the deferred tax assets relating to its NOLs and commitments and contingencies. With respect to accounts receivable, the Company estimates the necessary allowance for doubtful accounts based on both historical and anticipated trends of payment history and the ability of the customer to fulfill its obligations. For inventory, the Company evaluates both current and anticipated sales prices of its products to determine if a write down of inventory to net realizable value is necessary. In determining the Company’s valuation allowance for its deferred tax assets, the Company assesses its ability to generate taxable income in the future. The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results. Currently the Company purchases virgin hydrochlorofluorocarbon (“HCFC”) and hydrofluorocarbon (“HFC”) refrigerants and reclaimable, primarily HCFC, HFC and chlorofluorocarbon (“CFC”), refrigerants from suppliers and its customers. Effective January 1, 1996, the Clean Air Act (the “Act”) prohibited the production of virgin CFC refrigerants and limited the production of virgin HCFC refrigerants. Effective January 2004, the Act further limited the production of virgin HCFC refrigerants and federal regulations were enacted which established production and consumption allowances for HCFC refrigerants which imposed limitations on the importation of certain virgin HCFC refrigerants. Under the Act, production of certain virgin HCFC refrigerants is scheduled to be phased out during the period 2010 through 2020, and production of all virgin HCFC refrigerants is scheduled to be phased out by 2030. In October 2014, the EPA published a final rule providing further reductions in the production and consumption allowances for virgin HCFC refrigerants for the years 2015 through 2019 (the “Final Rule”). In the Final Rule, the EPA established a linear draw down for the production or importation of virgin HCFC-22 that started at approximately To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms or experiences a decline in demand and/or price for refrigerants sold by the Company, the Company could realize reductions in revenue from refrigerant sales, which could have a material adverse effect on its operating results and its financial position. The Company is subject to various legal proceedings. The Company assesses the merit and potential liability associated with each of these proceedings. In addition, the Company estimates potential liability, if any, related to these matters. To the extent that these estimates are not accurate, or circumstances change in the future, the Company could realize liabilities, which could have a material adverse effect on its operating results and its financial position. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the cost to sell. In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (ASU 2017-04), which simplifies the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test that requires a hypothetical purchase price allocation to measure goodwill impairment. Under the new standard, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 does not change the guidance on completing Step 1 of the goodwill impairment test and still allows a company to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. The standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company adopted this standard on January 1, 2017 and has applied its guidance in its impairment assessments. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments." This ASU addresses eight specific cash flow issues with the objective of eliminating the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods therein, with early adoption permitted. We elected to early adopt ASU 2016-15 as of December 31, 2016, and the adoption did not have a material impact on the presentation of the statement of cash flows. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and for interim periods therein. The Company does not expect the amended standard to have a material impact on the Company’s results of operations. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This guidance involves several aspects of accounting for employee share-based payments including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The Company adopted this ASU on a prospective basis on January 1, 2017. Excess tax benefits and deficiencies are recognized in the consolidated statement of earnings rather than capital in excess of par value of stock. Excess tax benefits within the consolidated statement of cash flows are presented as an operating activity. The impact of the adoption on the Company’s income tax expense or benefit and related cash flows during and after the period of adoption are dependent in part upon grants and vesting of stock-based compensation awards and other factors that are not fully controllable or predicable by the Company, such as the future market price of the Company's common stock, the timing of employee exercises of vested stock options, and the future achievement of performance criteria that affect performance-based awards. The Company adopted this ASU at the beginning of 2017 and during 2017, the impact of this standard reduced the Company’s income tax expense and increased net income by approximately $ 2.4 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. A modified retrospective transition approach is required for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. At a minimum, adoption of ASU 2016-02 will require recording a ROU asset and a lease liability on the Company's consolidated balance sheet; however, the Company is still currently evaluating the impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected. For public business entities, the amendments in ASU 2015-17 are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company elected to early adopt ASU 2015-17 prospectively in the fourth quarter of 2016. As a result, all deferred tax assets and liabilities have been presented as noncurrent on the consolidated balance sheet as of December 31, 2016. There was no impact on its results of operations as a result of the adoption of ASU 2015-17. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”, or ASU 2015-16. This amendment requires the acquirer in a business combination to recognize in the reporting period in which adjustment amounts are determined, any adjustments to provisional amounts that are identified during the measurement period, calculated as if the accounting had been completed at the acquisition date. Prior to the issuance of ASU 2015-16, an acquirer was required to restate prior period financial statements as of the acquisition date for adjustments to provisional amounts. The amendments in ASU 2015-16 are to be applied prospectively upon adoption. The Company adopted ASU 2015-16 in the fourth quarter of 2016. The adoption of the provisions of ASU 2015-16 did not have a material impact on its results of operations or financial position. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 340): Simplifying the Measurement of Inventory.” Under ASU 2015-11, companies utilizing the first-in, first-out or average cost method should measure inventory at the lower of cost or net realizable value, whereas net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for interim and annual reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 did not have a material impact on the Company’s results of operations or financial position. In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)." The new revenue recognition standard provides a five-step analysis to determine when and how revenue is recognized. The core principle of ASU 2014-09 is that an entity should recognize 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. The standard also requires new, expanded disclosures related to the entity’s revenue streams, performance obligations and significant judgments made in applying the standard. This ASU is effective for annual periods beginning after December 15, 2017 and should be applied retrospectively to each reporting period presented or using a modified retrospective application with the cumulative effect recognized at the date of initial application. The Company will adopt this standard on January 1, 2018 using the modified retrospective method. The Company has substantially completed its assessment of its revenue practices. Based on the evaluation performed to date, the Company has concluded that the adoption of this standard will have no impact on our financial position, results of operations or cash flows and will not have a significant impact on our internal controls over financial reporting. The Company is still assessing the impact the adoption of the standard will have on the newly required disclosures, which will be finalized during the first quarter of 2018. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 2- Fair Value ASC Subtopic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based upon observable inputs used in the valuation techniques, the Company is required to provide information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values into three broad levels as follows: Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3: Valuations for assets and liabilities include certain unobservable inputs in the assumptions and projections used in determining the fair value assigned to such assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. (in thousands) As of December 31, 2017 Fair Value Measurements Carrying Fair Value Level 1 Level 2 Level 3 Liabilities: Deferred acquisition cost $ 0 $ 0 $ 0 (in thousands) As of December 31, 2016 Fair Value Measurements Carrying Fair Value Level 1 Level 2 Level 3 Liabilities: Deferred acquisition cost $ 789 $ 789 $ 789 (in thousands) Acquisition of Polar 2015 Total Deferred Balance at January 1, 2016 $ 667 $ 1,235 $ 1,902 Payments (667) (1,010) (1,677) Total adjustments included in earnings 564 564 Balance at December, 31, 2016 $ $ 789 $ 789 Payments (789) (789) Total adjustments included in earnings Balance at December 31, 2017 $ $ $ |
Trade accounts receivable - net
Trade accounts receivable - net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Trade accounts receivable - net | Note 3 - Trade accounts receivable net At December 31, 2017, 2016, and 2015 trade accounts receivable are net of reserves for doubtful accounts of $ 0.7 0.4 0.3 (in thousands) Beginning Balance Net additions charged to Deductions Ending Balance 2017 $ 365 $ 136 $ 221 $ 722 2016 $ 335 $ 21 $ 9 $ 365 2015 $ 244 $ 99 $ (8) $ 335 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4- Inventories December 31 , 2017 2016 (in thousands) Refrigerant and cylinders $ 22,322 $ 11,168 Packaged refrigerants 150,163 57,433 Total $ 172,485 $ 68,601 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Note 5 - Property, plant and equipment December 31 , 2017 2016 Estimated (in thousands) Property, plant and equipment - Land $ 1,255 $ 535 - Land improvements 319 6-10 years - Buildings 1,446 830 25-39 years - Building improvements 3,045 873 25-39 years - Cylinders 13,390 15-30 years - Equipment 23,524 13,423 3-10 years - Equipment under capital lease 315 248 5-7 years - Vehicles 1,612 1,360 3-5 years - Lab and computer equipment, software 3,056 2,652 2-8 years - Furniture &; fixtures 656 289 5-10 years - Leasehold improvements 711 119 3-5 years - Equipment under construction 385 1,654 Subtotal 49,714 21,983 Accumulated depreciation 19,253 14,451 Total $ 30,461 $ 7,532 Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $ 2.3 1.7 1.6 2.0 1.7 1.5 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 6 - Income taxes Income tax expense for the years ended December 31, 2017, 2016 and 2015 was $ 0.8 6.6 2.9 Years Ended December 31, 2017 2016 2015 (in thousands) Current: Federal $ (3,690) $ 4,981 $ 174 State and local 532 567 2 (3,158) 5,548 176 Deferred: Federal 4,293 949 2,460 State and local (288) 131 308 4,005 1,080 2,768 Expense for income taxes $ 847 $ 6,628 $ 2,944 Years ended December 31, 2017 2016 2015 Income tax rates - Statutory U.S. federal rate 35 % 35 % 34 % - State income taxes, net of federal benefit 4 % 3 % 4 % - Excess tax benefits related to stock compensation (20) % - Effect of 2017 Tax Act (12) % Total 7 % 38 % 38 % As of December 31, 2017, the Company had NOLs of approximately $ 5.4 2024 2.6 Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. December 31, 2017 2016 (in thousands) - Depreciation &; amortization $ (3,665) $ (236) - Reserves for doubtful accounts 115 139 - Inventory reserve 218 304 - Non qualified stock options 409 247 - Net operating losses 1,450 2,078 Total $ (1,473) $ 2,532 The Company considered its projected future taxable income, and associated annual limitations, in determining the amount of deferred tax assets to recognize. The Company believes that given the extended time period that it may recognize its deferred tax assets, it is more likely than not it will realize the benefit of these assets prior to their expiration. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“2017 Tax Act”), which lowered the federal statutory income tax rate from, generally, 35 21 1.4 As a result of an Internal Revenue Service audit, the 2013 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2017, the various states’ statutes of limitations remain open for tax years subsequent to 2010. The Company recognizes interest and penalties, if any, relating to income taxes as a component of the provision for income taxes. The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2017 and 2016, the Company had no uncertain tax positions. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note 7 Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting. The Company performed the annual goodwill impairment assessment using a qualitative approach to determine whether it is more likely than not that the fair value of goodwill is less than its carrying value. In performing the qualitative assessment, we identify and consider the significance of relevant key factors, events, and circumstances that affect the fair value of our goodwill. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as our actual and planned financial performance. If the results of the qualitative assessment conclude that it is not more likely than not that the fair value of goodwill exceeds its carrying value, additional quantitative impairment testing is performed. Based on the results of the impairment assessments of goodwill and intangible assets performed, we concluded that it is more likely than not that the fair value of our goodwill significantly exceeds the carrying value and that there are no impairment indicators related to intangible assets. At December 31, 2017 the Company had $ 49.5 48.6 0.4 0.4 December 31, 2017 2016 (in thousands) Amortization Gross Gross Period Carrying Accumulated Carrying Accumulated (in years) Amount Amortization Net Amount Amortization Net Intangible Assets with determinable lives Patents 5 $ 386 $ 374 $ 12 $ 386 $ 366 $ 20 Covenant Not to Compete 6 10 1,270 475 795 1,270 322 948 Customer Relationships 3 12 31,660 1,288 30,372 2,000 452 1,548 Above Market Leases 13 567 10 557 Trade Name 2 30 30 30 30 Licenses 10 1,000 317 683 1,000 217 783 Totals identifiable intangible assets $ 34,913 $ 2,494 $ 32,419 $ 4,686 $ 1,387 $ 3,299 Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. No impairments were recognized for the years ended December 31, 2017, 2016 and 2015. The amortization of intangible assets for the years ended December 31, 2017, 2016, and 2015 were $ 1.1 0.5 0.5 3.0 3.0 3.0 3.0 3.0 17.4 |
Short-term and long-term debt
Short-term and long-term debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term and long-term debt | Note 8 - Short-term and long-term debt December 31 , 2017 2016 (in thousands) Short-term &; long-term debt Short-term debt: - Revolving credit line and other debt $ 65,152 $ - Long-term debt: current 1,050 199 Subtotal 66,202 199 Long-term debt: - Term Loan Facility 103,950 - Vehicle and equipment loans 39 36 - Capital lease obligations 20 116 - Less: deferred financing costs on term loan (2,851) Subtotal 101,158 152 Total short-term &; long-term debt (1) $ 167,360 $ 351 (1) Bank Credit Line On June 22, 2012, Hudson Technologies Company (“HTC”), an indirect subsidiary of the Company, entered into a Revolving Credit, Term Loan and Security Agreement (the “Original PNC Facility”) with PNC Bank, National Association, as agent (“Agent” or “PNC”), and such other lenders as may thereafter become a party to the Original PNC Facility. Between June 2012 and April 2016, the Company entered into six amendments to the Original PNC Facility. Under the terms of the Original PNC Facility, as amended, the Maximum Loan Amount (as defined in the Original PNC Facility) was $ 40,000,000 50,000,000 46,000,000 130,000 On October 10, 2017, HTC and HTC’s affiliates Hudson Holdings, Inc. (“Holdings”) and Airgas-Refrigerants, Inc., as borrowers (collectively, the “Borrowers”), and the Company as a guarantor, became obligated under an Amended and Restated Revolving Credit and Security Agreement (the “PNC Facility”) with PNC Bank, National Association, as administrative agent, collateral agent and lender (“Agent” or “PNC”), PNC Capital Markets LLC as lead arranger and sole bookrunner, and such other lenders as may thereafter become a party to the PNC Facility. The PNC Facility amended and restated the Original PNC Facility. Under the terms of the PNC Facility, the Borrowers may borrow, from time to time, up to $150 million at any time consisting of revolving loans in a maximum amount up to the lesser of $ 150 15 5 Amounts borrowed under the PNC Facility were used by the Borrowers to consummate the acquisition of Airgas-Refrigerants, Inc. (“ARI”) and for working capital needs, certain permitted future acquisitions, and to reimburse drawings under letters of credit. At December 31, 2017, total borrowings under the PNC Facility were $ 65 64.3 130,000 Interest on loans under the PNC Facility is payable in arrears on the first day of each month with respect to loans bearing interest at the domestic rate (as set forth in the PNC Facility) and at the end of each interest period with respect to loans bearing interest at the Eurodollar rate (as set forth in the PNC Facility) or, for Eurodollar rate loans with an interest period in excess of three months, at the earlier of (a) each three months from the commencement of such Eurodollar rate loan or (b) the end of the interest period. Interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to domestic rate loans, the sum of (i) a rate per annum equal to the higher of (1) the base commercial lending rate of PNC, (2) the federal funds open rate plus 0.5% and (3) the daily LIBOR plus 1.0%, plus (ii) between 0.50% and 1.00% depending on average quarterly undrawn availability and (B) with respect to Eurodollar rate loans, the sum of the Eurodollar rate plus between 1.50% and 2.00% depending on average quarterly undrawn availability. Borrowers and the Company granted to the Agent, for the benefit of the lenders, a security interest in substantially all of their respective assets, including receivables, equipment, general intangibles (including intellectual property), inventory, subsidiary stock, real property, and certain other assets. The PNC Facility contains a fixed charge coverage ratio covenant. The PNC Facility also contains customary non-financial covenants relating to the Company and the Borrowers, including limitations on Borrowers’ ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control. The commitments under the PNC Facility will expire and the full outstanding principal amount of the loans, together with accrued and unpaid interest, are due and payable in full on October 10, 2022, unless the commitments are terminated and the outstanding principal amount of the loans are accelerated sooner following an event of default. In connection with the closing of the PNC Facility, the Company also entered into an Amended and Restated Guaranty and Suretyship Agreement, dated as of October 10, 2017 (the “Revolver Guarantee”), pursuant to which the Company affirmed its unconditional guarantee of the payment and performance of all obligations owing by Borrowers to PNC, as Agent for the benefit of the revolving lenders. New Term Loan Facility On October 10, 2017, HTC, Holdings, and ARI, as borrowers, and the Company, as guarantor, became obligated under a Term Loan Credit and Security Agreement (the “Term Loan Facility”) with U.S. Bank National Association, as administrative agent and collateral agent (“Term Loan Agent”) and funds advised by FS Investments and sub-advised by GSO Capital Partners LP and such other lenders as may thereafter become a party to the Term Loan Facility (the “Term Loan Lenders”). Under the terms of the Term Loan Facility, the Borrowers have immediately borrowed $ 105 25 The Term Loans mature on October 10, 2023 Principal payments on the Term Loans are required on a quarterly basis, commencing with the quarter ending March 31, 2018, in the amount of 1% of the original principal amount of the outstanding Term Loans per annum. The Term Loan Facility also requires annual payments of up to 50% of Excess Cash Flow (as defined in the Term Loan Facility) depending upon the Company’s Total Leverage Ratio (as defined in the Term Loan Facility) for the applicable year. The Term Loan Facility also requires mandatory prepayments of the Term Loans in the event of certain asset dispositions, debt issuances, and casualty and condemnation events. The Term Loans may be prepaid at the option of the Borrowers at par in an amount up to $30 million. Additional prepayments are permitted after the first anniversary of the closing date subject to a prepayment premium of 3% in year two, 1% in year three and zero in year four and thereafter. Interest on the Term Loans is generally payable on the earlier of the last day of the interest period applicable to such Eurodollar rate loan and the last day of the Term Loan Facility, as applicable. Interest is payable at the rate per annum of the Eurodollar Rate (as defined in the Term Loan Facility) plus 7.25 3.00 Borrowers and the Company granted to the Term Loan Agent, for the benefit of the Term Loan Lenders, a security interest in substantially all of their respective assets, including receivables, equipment, general intangibles (including intellectual property), inventory, subsidiary stock, real property, and certain other assets. The Term Loan Facility contains a total leverage ratio covenant, tested quarterly. The Term Loan Facility also contains customary non-financial covenants relating to the Company and the Borrowers, including limitations on their ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control. In connection with the closing of the Term Loan Facility, the Company also entered into a Guaranty and Suretyship Agreement, dated as of October 10, 2017 (the “Term Loan Guarantee”), pursuant to which the Company affirmed its unconditional guarantee of the payment and performance of all obligations owing by Borrowers to Term Loan Agent, as agent for the benefit of the Term Loan Lenders. The Term Loan Agent and the Agent have entered into an intercreditor agreement governing the relative priority of their security interests granted by the Borrowers and the Guarantor in the collateral, providing that the Agent shall have a first priority security interest in the accounts receivable, inventory, deposit accounts and certain other assets (the “Revolving Credit Priority Collateral”) and the Term Loan Agent shall have a first priority security interest in the equipment, real property, capital stock of subsidiaries and certain other assets (the “Term Loan Priority Collateral”). The Company was in compliance with all covenants, under the PNC Facility and the Term Loan Facility as of December 31, 2017. The Company’s ability to comply with these covenants in future quarters may be affected by events beyond the Company’s control, including general economic conditions, weather conditions, regulations and refrigerant pricing. Although we expect to remain in compliance with all covenants in the PNC Facility and the Term Loan Facility depending on our future operating performance and general economic conditions, we cannot make any assurance that we will continue to be in compliance. Building and Land Mortgage On June 1, 2012, the Company entered into a mortgage note with Busey Bank for $ 855,000 4 60 June 1, 2017 15,815 0 Vehicle and Equipment Loans The Company has entered into various vehicle and equipment loans. These loans are payable in 60 monthly payments through March 2020 and bear interest ranging from 0.0 6.7 Capital Lease Obligations The Company rents certain equipment with a net book value of approximately $ 0.2 Years ended December 31, Amount (in thousands) -2018 $ 82 -2019 31 -2020 6 -2021 3 -2022 0 Subtotal 122 Less interest expense (6) Total $ 116 Years ended December 31, Amount (in thousands) -2018 $ 1,148 -2019 1,097 -2020 1,059 -2021 1,053 -2022 1,050 Thereafter 99,750 Total $ 105,157 |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders equity | Note 9 - Stockholders' equity On July 7, 2010, the Company sold 2,737,500 2,737,500 1,368,750 2.00 2.60 4.9 1.3 Effective as of March 4, 2011, the Company re-purchased warrants to purchase 150,000 0.60 On March 7, 2011, the remaining 1,218,750 Between January 2016 and July 2016, 1,161,252 2.60 7,498 On December 8, 2016 the Company entered into an Underwriting Agreement with two investment banking firms for themselves and as representatives for two other investment banking firms (collectively, the “Underwriters”), in connection with an underwritten offering (the “Offering”) of 6,428,571 0.01 6,428,571 964,285 The closing of the Offering was held on December 14, 2016, at which time the Company sold 7,392,856 964,285 7.00 51.7 3.3 48.4 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 10 - Commitments and contingencies Rents and operating leases Properties Location Annual Lease Expiration Auburn, Washington $ 39,000 8/2018 Baton Rouge, Louisiana $ 23,000 5/2019 Catano, Puerto Rico $ 124,000 12/2020 Champaign, Illinois $ 504,000 12/2018 Charlotte, North Carolina $ 26,000 5/2019 Escondido, California $ 36,000 Month to Month Hampstead, New Hampshire $ 52,000 8/2022 Nashville, Tennessee $ 173,000 3/2018 Long Beach, California $ 26,400 2/2020 Long Island City, New York $ 782,000 7/2018 Ontario, California $ 90,000 12/2018 Pearl River, New York $ 150,000 12/2021 Pottsboro, Texas $ 6,000 8/2017 Riverside, California $ 27,000 Month to Month Smyrna, Georgia $ 446,000 7/2030 Stony Point, New York $ 90,000 6/2021 Tulsa, Oklahoma $ 27,000 12/2017 The Company rents properties and various equipment under operating leases. Rent expense for the years ended December 31, 2017 1.7 1.4 1.2 Years ended December 31, Amount (in thousands) -2018 $ 2,374 -2019 1,183 -2020 1,155 -2021 958 -2022 655 Thereafter 3,943 Total $ 10,268 Legal Proceedings On April 1, 1999, the Company reported a release of approximately 7,800 lbs. of R-11 refrigerant (the “1999 Release”), at its former leased facility in Hillburn, NY (the “Hillburn Facility”), which the Company vacated in June 2006. Since September 2000, last modified in March 2013, the Company signed an Order on Consent with the New York State Department of Environmental Conservation (“DEC”) whereby the Company agreed to operate a remediation system to reduce R-11 refrigerant levels in the groundwater under and around the Hillburn Facility and agreed to perform periodic testing at the Hillburn Facility until remaining groundwater contamination has been effectively abated. The Company accrued, as an expense in its consolidated financial statements, the costs that the Company believes it will incur in connection with its compliance with the Order of Consent through December 31, 2018. There can be no assurance that additional testing will not be required or that the Company will not incur additional costs and such costs in excess of the Company’s estimate may have a material adverse effect on the Company financial condition or results of operations. The Company has exhausted all insurance proceeds available for the 1999 Release under all applicable policies. In May 2000, the Hillburn Facility as a result of the 1999 Release, was nominated by EPA for listing on the National Priorities List (“NPL”) pursuant to CERCLA. In September 2003, the EPA advised the Company that it had no current plans to finalize the process for listing of the Hillburn Facility on the NPL. During the years ended December 31, 2017, 2016 and 2015 the Company incurred no additional remediation costs in connection with the matters above. The remaining liability on our Balance Sheet as of December 31, 2017 is approximately $ 90,000 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | Note 11 - Share-Based Compensation Share-based compensation represents the cost related to share-based awards, typically stock options or stock grants, granted to employees, non-employees, officers and directors. Share-based compensation is measured at grant date, based on the estimated aggregate fair value of the award on the grant date, and such amount is charged to compensation expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. For the years ended December 31, 2017, 2016 and 2015, the share-based compensation expense of $ 1.5 0.6 0.2 Share-based awards have historically been made as stock options, and recently also as stock grants, issued pursuant to the terms of the Company’s stock option and stock incentive plans, (collectively, the “Plans”), described below. The Plans may be administered by the Board of Directors or the Compensation Committee of the Board or by another committee appointed by the Board from among its members as provided in the Plans. Presently, the Plans are administered by the Company’s Compensation Committee of the Board of Directors. As of December 31, 2017, the Plans authorized the issuance of stock options to purchase 6,000,000 2,259,130 Stock option awards, which allow the recipient to purchase shares of the Company’s common stock at a fixed price, are typically granted at an exercise price equal to the Company’s stock price at the date of grant. Typically, the Company’s stock option awards have vested from immediately to two years from the grant date and have had a contractual term ranging from three to ten years. During the years ended December 31, 2017, 2016 and 2015, the Company issued options to purchase 1,400,203 1,170,534 164,506 6,236 17,148 9,835 Effective September 10, 2004, the Company adopted its 2004 Stock Incentive Plan (“2004 Plan”) pursuant to which 2,500,000 September 10, 2014 Effective August 27, 2008, the Company adopted its 2008 Stock Incentive Plan (“2008 Plan”) pursuant to which 3,000,000 August 27, 2018 ISOs granted under the 2008 Plan may not be granted at a price less than the fair market value of the common stock on the date of grant (or 110 Effective September 17, 2014, the Company adopted its 2014 Stock Incentive Plan (“2014 Plan”) pursuant to which 3,000,000 September 17, 2024 ISOs granted under the 2014 Plan may not be granted at a price less than the fair market value of the common stock on the date of grant (or 110 All stock options have been granted to employees and non-employees at exercise prices equal to or in excess of the market value on the date of the grant. Years ended 2017 2016 2015 Assumptions Dividend yield 0 % 0 % 0 % Risk free interest rate 1.97%-2.08 % 0.%-1.0 % 0.83%-1.03 % Expected volatility 44%-46 % 47%-53 % 49%-60 % Expected lives 3 years 3 years 3 years Stock Option Plan Totals Shares Weighted Outstanding at December 31, 2014 3,280,874 $ 1.98 -Cancelled (132,500) $ 3.72 -Exercised (679,291) $ 1.65 -Granted 164,506 $ 3.28 Outstanding at December 31, 2015 2,633,589 $ 2.06 -Exercised (589,725) $ 2.43 -Granted 1,170,534 $ 3.95 Outstanding at December 31, 2016 3,214,398 $ 2.68 -Exercised (1,545,161) $ 2.27 -Granted 1,400,203 $ 5.72 Outstanding at December 31, 2017 3,069,440 $ 4.28 Number of Weighted Weighted 2017 Options Contractual Life Exercise Price Options outstanding 3,069,440 2.4 years $ 4.28 Options vested 1,308,203 3.0 years $ 3.94 Options unvested 92,000 0.9 years $ 5.76 Number of Weighted Weighted 2016 Options Contractual Life Exercise Price Options outstanding 3,214,398 2.0 years $ 2.68 Options vested 1,191,368 3.0 years $ 3.94 The intrinsic values of options outstanding at December 31, 2017 and 2016 are $ 5.5 17.1 The intrinsic value of options unvested at December 31, 2017 and 2016 are approximately $0 for both periods. : 2017 2016 2015 Intrinsic value of options vested $ 462,369 $ 4,843,774 $ 5,000 Intrinsic value of options exercised $ 8,025,527 $ 1,777,476 $ 1,309,000 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 12 - Acquisitions 2015 Acquisition On January 16, 2015, the Company acquired certain assets of a supplier of refrigerants and compressed gases, and also hired three employees associated with the business. The purchase price for this acquisition was $ 2.4 1.6 1.6 2.3 As of December 31, 2015, the valuation and allocation of the purchase price for this acquisition was finalized. As part of that process, it was determined that the deferred acquisition cost payable that had been previously recorded at the maximum earn out of $ 3.0 1.0 5.4 4.4 1.9 0.8 0.1 The intangible assets are being amortized over a period ranging from two to ten years. The goodwill recognized as part of the acquisition will be deductible for tax purposes. The transaction also provides for additional employee compensation for years 2017 through 2019, based on certain revenue performance. The total additional employee compensation, if any, cannot exceed $ 3,000,000 The results of the acquired business operations are included in the Company’s Consolidated Statements of Operations from the date of acquisition, and are not material to the Company’s financial position or results of operations. ARI Acquisition On October 10, 2017, the Company completed the Acquisition of ARI. At closing, the Company paid net cash consideration of approximately $ 209 Due to the timing of the ARI acquisition, which closed during the fourth quarter of 2017, our estimates of fair values of the assets that we acquired and the liabilities that we assumed are based on information that was available as of the acquisition date of ARI and are preliminary. We are continuing to evaluate the underlying inputs and assumptions used in our valuations, particularly with respect to certain aspects of the acquired inventory and property and equipment. In addition, in accordance with the stock purchase agreement the purchase price remains subject to further working capital adjustment. Accordingly, these preliminary estimates are subject to change during the measurement period, which is the period subsequent to the acquisition date during which the acquiror may adjust the provisional amounts recognized for a business combination, not to exceed one year form the acquisition date. Amortization life Fair value Accounts receivable $ 14,668 Other assets 734 Inventories 103,876 Property and equipment 24,179 Customer relationships 144 29,660 Above-market leases 153 567 Goodwill 48,609 Total assets acquired $ 222,293 Accounts payable and accrued expenses $ 3,210 Other current liabilities 10,114 Total liabilities assumed $ 13,324 Total purchase price $ 208,969 The fair values of the acquired intangibles were determined using discounted cash flow models using a discount factor based on an estimated risk-adjusted weighted average cost of capital. The customer relationships were valued using the multi-period excess-earnings method, a form of the income approach. The above-market leases were valued using the differential cash flow method of the income approach. The acquisition resulted in the recognition of $ 48.6 80 105 12 Months Ended (unaudited, in thousands, except per share amounts) 2017 2016 Revenues $ 255,701 $ 239,626 Net income $ 23,405 $ 17,109 Net income per share: Basic $ 0.56 $ 0.50 Diluted $ 0.55 $ 0.48 6.3 14.8 1.5 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 13- Quarterly Financial Data (Unaudited) The Company’s operating results vary from period to period as a result of weather conditions, requirements of potential customers, non-recurring refrigerant and service sales, availability and price of refrigerant products (virgin or reclaimable), changes in reclamation technology and regulations, timing in introduction and/or retrofit or replacement of refrigeration equipment, the rate of expansion of the Company's operations, and by other factors. (in thousands, except share and per share data) For the Year Ended 2017 Q1 Q2 Q3 Q4 (b) Total (a) Revenues $ 38,830 $ 52,231 $ 24,706 $ 24,613 $ 140,380 Gross profit $ 12,467 $ 17,420 $ 5,070 $ 3,027 $ 37,984 Operating expenses $ 3,074 $ 3,520 $ 3,594 $ 12,664 $ 22,852 Operating income (loss) $ 9,393 $ 13,900 $ 1,476 $ (9,637) $ 15,132 Other (expense) $ (85) $ (61) $ (24) $ (2,958) $ (3,128) Income (loss) before income taxes $ 9,308 $ 13,839 $ 1,452 $ (12,595) $ 12,004 Income tax expense (benefit) $ 3,574 $ 5,314 $ (652) $ (7,389) $ 847 Net income (loss) $ 5,734 $ 8,525 $ 2,104 $ (5,206) $ 11,157 Net income (loss) per common share Basic (a) $ 0.14 $ 0.21 $ 0.05 $ (0.12) $ 0.27 Net income (loss) per common share Diluted (a) $ 0.13 $ 0.20 $ 0.05 $ (0.12) $ 0.26 Weighted average number of shares outstanding Basic 41,507,941 41,567,848 41,869,528 42,216,987 41,764,230 Weighted average number of shares outstanding Diluted 43,503,889 43,550,226 43,463,982 42,216,987 42,766,843 (a) The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. (b) As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. For the Year Ended 2016 Q1 Q2 Q3 Q4 Total (a) Revenues $ 28,167 $ 34,605 $ 34,930 $ 7,779 $ 105,481 Gross profit $ 7,522 $ 10,491 $ 12,040 $ 1,033 $ 31,086 Operating expenses $ 2,503 $ 2,347 $ 4,022 $ 3,267 $ 12,139 Operating income (loss) $ 5,019 $ 8,144 $ 8,018 $ (2,234) $ 18,947 Other Income (expense) $ (271) $ (352) $ (296) $ (763) $ (1,682) Income (loss) before income taxes $ 4,748 $ 7,792 $ 7,722 $ (2,997) $ 17,265 Income tax expense (benefit) $ 1,804 $ 2,962 $ 2,933 $ (1,071) $ 6,628 Net income (loss) $ 2,944 $ 4,830 $ 4,789 $ (1,926) $ 10,637 Net income (loss) per common share Basic $ 0.09 $ 0.15 $ 0.14 $ (0.05) $ 0.31 Net income (loss) per common share Diluted $ 0.09 $ 0.14 $ 0.14 $ (0.05) $ 0.30 Weighted average number of shares outstanding Basic 32,888,659 33,128,518 33,873,479 36,527,250 34,104,476 Weighted average number of shares outstanding Diluted 33,944,876 34,270,337 35,297,585 36,527,250 35,416,910 (a) The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Business | Business Hudson Technologies, Inc., incorporated under the laws of New York on January 11, 1991, is a refrigerant services company providing innovative solutions to recurring problems within the refrigeration industry. The Company’s operations consist of one reportable segment. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at, a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. In addition, the Company’s SmartEnergy OPS TM On October 10, 2017, the Company and its wholly-owned subsidiary, Hudson Holdings, Inc. (“Holdings”) completed the acquisition (the “Acquisition”) from Airgas, Inc. (“Airgas”) of all of the outstanding stock of Airgas-Refrigerants, Inc., a Delaware corporation (“ARI”), and effective October 11, 2017, ARI’s name was changed to Aspen Refrigerants, Inc. At closing, Holdings paid net cash consideration to Airgas of approximately $ 209 The cash consideration paid by Holdings at closing was financed with available cash balances, plus $ 80 150 105 In preparing the accompanying consolidated financial statements, and in accordance with Accounting Standards Codification (“ASC”) 855-10 “Subsequent Events”, the Company’s management has evaluated subsequent events through the date that the financial statements were filed. In the opinion of management, all estimates and adjustments considered necessary for a fair presentation have been included and all such adjustments were normal and recurring. |
Consolidation | Consolidation The consolidated financial statements represent all companies of which Hudson directly or indirectly has majority ownership or otherwise controls. Significant intercompany accounts and transactions have been eliminated. The Company's consolidated financial statements include the accounts of wholly-owned subsidiaries Hudson Holdings, Inc., Hudson Technologies Company and Aspen Refrigerants, Inc. The Company does not present a statement of comprehensive income as its comprehensive income is the same as its net income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of financial instruments including trade accounts receivable and accounts payable approximate fair value at December 31, 2017 and December 31, 2016, because of the relatively short maturity of these instruments. The carrying value of debt approximates fair value, due to the variable rate nature of the debt, as of December 31, 2017 and December 31, 2016. Please see Note 2 for further details on fair value description and hierarchy of the Company’s deferred acquisition cost. |
Credit Risk | Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of temporary cash investments and trade accounts receivable. The Company maintains its temporary cash investments in highly-rated financial institutions and, at times, the balances exceed FDIC insurance coverage. The Company's trade accounts receivable are primarily due from companies throughout the United States. The Company reviews each customer's credit history before extending credit. The Company establishes an allowance for doubtful accounts based on factors associated with the credit risk of specific accounts, historical trends, and other information. The carrying value of the Company’s accounts receivable is reduced by the established allowance for doubtful accounts. The allowance for doubtful accounts includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve for the remaining accounts receivable balances. The Company adjusts its reserves based on factors that affect the collectability of the accounts receivable balances. For the year ended December 31, 2017, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 33 2.7 For the year ended December 31, 2016, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 30 For the year ended December 31, 2015, two customers each accounted for 10% or more of the Company’s revenues and, in the aggregate these two customers accounted for 33 The loss of a principal customer or a decline in the economic prospects of and/or a reduction in purchases of the Company's products or services by any such customer could have a material adverse effect on the Company's operating results and financial position. |
Cash and Cash Equivalents | Cash and Cash Equivalents Temporary investments with original maturities of ninety days or less are included in cash and cash equivalents. |
Inventories | Inventories Inventories, consisting primarily of refrigerant products available for sale, are stated at the lower of cost, on a first-in first-out basis, or net realizable value. Where the market price of inventory is less than the related cost, the Company may be required to write down its inventory through a lower of cost or market adjustment, the impact of which would be reflected in cost of sales on the Consolidated Statements of Operations. Any such adjustment would be based on management’s judgment regarding future demand and market conditions and analysis of historical experience. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, including internally manufactured equipment. The cost to complete equipment that is under construction is not considered to be material to the Company's financial position. Provision for depreciation is recorded (for financial reporting purposes) using the straight-line method over the useful lives of the respective assets. Leasehold improvements are amortized on a straight-line basis over the shorter of economic life or terms of the respective leases. Costs of maintenance and repairs are charged to expense when incurred. Due to the specialized nature of the Company's business, it is possible that the Company's estimates of equipment useful life periods may change in the future. |
Goodwill | Goodwill The Company has made acquisitions that included a significant amount of goodwill and other intangible assets. The Company applies the purchase method of accounting for acquisitions, which among other things, requires the recognition of goodwill (which represents the excess of the purchase price of the acquisition over the fair value of the net assets acquired and identified intangible assets). Goodwill is subject to an annual (or under certain circumstances more frequent) impairment test based on its estimated fair value. Other intangible assets that meet certain criteria are amortized over their estimated useful lives. Beginning in 2017, the Company adopted, on a prospective basis, ASU No. 2017-04, which simplified the method used to perform the annual, or interim, goodwill impairment testing. The Company performed the annual goodwill impairment assessment using a qualitative approach to determine whether it is more likely than not that the fair value of goodwill is less than its carrying value. In performing the qualitative assessment, the Company identified and considered the significance of relevant key factors, events, and circumstances that affect the fair value of its goodwill. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If the results of the qualitative assessment conclude that it is not more likely than not that the fair value of goodwill exceeds its carrying value, additional quantitative impairment testing is performed. An impairment charge would be recognized when the carrying amount exceeds the estimated fair value of a reporting unit. These impairment evaluations use many assumptions and estimates in determining an impairment loss, including certain assumptions and estimates related to future earnings. If the Company does not achieve its earnings objectives, the assumptions and estimates underlying these impairment evaluations could be adversely affected, which could result in an asset impairment charge that would negatively impact operating results. There were no impairment losses recognized in any of the three years ended December 31, 2017, 2016 or 2015. |
Cylinder Deposit Liability | Cylinder Deposit Liability The cylinder deposit liability, which is included in Accrued expenses and other current liabilities on the Company’s Balance Sheet, represents the amount due to customers for the return of refillable cylinders. ARI charges its customers cylinder deposits upon the shipment of refrigerant gases that are contained in refillable cylinders. The amount charged to the customer by ARI approximates the cost of a new cylinder of the same size. Upon return of a cylinder, this liability is reduced. The cylinder deposit liability was assumed as part of the ARI acquisition and the balance was $ 9.8 |
Revenues and Cost of Sales | Revenues and Cost of Sales Revenues are recorded upon completion of the service or the shipment of the product. The Company evaluates each sale to ensure collectability. In addition, each sale is based on an arrangement with the customer and the sales price to the customer is fixed. In July 2016 the Company was awarded, as prime contractor, a five-year contract, including a five-year renewal option, by the United States Defense Logistics Agency (“DLA”) for the management, supply, and sale of refrigerants, compressed gases, cylinders and related terms. Due to the contract containing multiple elements, the Company assessed the arrangement in accordance with Accounting Standards Codification (“ASC”) 605-25, Revenue Recognition: Multiple-Element Arrangements and accordingly revenue related to the sale of product is recognized at the time of product shipment, and service revenue is recognized on a straight-line basis over the term of the arrangement. Annual service revenue under the contract is approximately $ 2.4 Cost of sales is recorded based on the cost of products shipped or services performed and related direct operating costs of the Company's facilities. To the extent that the Company charges its customers shipping fees, such amounts are included as a component of revenue and the corresponding costs are included as a component of cost of sales. Years Ended December 31, 2017 2016 2015 (in thousands) Product and related sales $ 136,016 $ 101,344 $ 75,154 RefrigerantSide ® 4,364 4,137 4,568 Total $ 140,380 $ 105,481 $ 79,722 |
Income Taxes | Income Taxes The Company is taxed at statutory corporate income tax rates after adjusting income reported for financial statement purposes for certain items. The current income tax expense (benefit) reflects the tax results of revenues and expenses currently taxable or deductible. The Company utilizes the asset and liability method of accounting for deferred income taxes, which provides for the recognition of deferred tax assets or liabilities, based on enacted tax rates and laws, for the differences between the financial and income tax reporting bases of assets and liabilities. The tax benefit associated with the Company's net operating loss carry forwards (“NOLs”) is recognized to the extent that the Company expects to realize future taxable income. As a result of a prior year “change in control”, as defined by the Internal Revenue Service, the Company’s ability to utilize its existing NOLs is subject to certain annual limitations. To the extent that the Company utilizes its NOLs, it will not pay tax on such income. However, to the extent that the Company’s net income, if any, exceeds the annual NOL limitation, it will pay income taxes based on the then existing statutory rates. In addition, certain states either do not allow or limit NOLs and as such the Company will be liable for certain state taxes. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“2017 Tax Act”), which lowered the federal statutory income tax rate from, generally, 35 21 1.4 As a result of an Internal Revenue Service audit, the 2013 and prior federal tax years have been closed. The Company operates in many states throughout the United States and, as of December 31, 2017, the various states’ statutes of limitations remain open for tax years subsequent to 2010. The Company recognizes interest and penalties, if any, relating to income taxes as a component of the provision for income taxes. The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2017 and 2016, the Company had no uncertain tax positions. |
Income per Common and Equivalent Shares | Income per Common and Equivalent Shares If dilutive, common equivalent shares (common shares assuming exercise of options and warrants) utilizing the treasury stock method are considered in the presentation of diluted earnings per share. Years ended December 31, 2017 2016 2015 Net income $ 11,157 $ 10,637 $ 4,763 Weighted average number of shares - basic 41,764,230 34,104,476 32,546,840 Shares underlying warrants 300,846 Shares underlying options 1,002,613 1,312,434 1,088,413 Weighted average number of shares outstanding diluted 42,766,843 35,416,910 33,936,099 During the years ended December 31, 2017, 2016 and 2015, certain options and warrants aggregating none, 73,034 106,290 |
Estimates and Risks | Estimates and Risks The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the use of estimates and assumptions that affect the amounts reported in these financial statements and footnotes. The Company considers these accounting estimates to be critical in the preparation of the accompanying consolidated financial statements. The Company uses information available at the time the estimates are made. However, these estimates could change materially if different information or assumptions were used. Additionally, these estimates may not ultimately reflect the actual amounts of the final transactions that occur. The Company utilizes both internal and external sources to evaluate potential current and future liabilities for various commitments and contingencies. In the event that the assumptions or conditions change in the future, the estimates could differ from the original estimates. Several of the Company's accounting policies involve significant judgments, uncertainties and estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. To the extent that actual results differ from management's judgments and estimates, there could be a material adverse effect on the Company. On a continuous basis, the Company evaluates its estimates, including, but not limited to, those estimates related to its allowance for doubtful accounts, inventory reserves, and valuation allowance for the deferred tax assets relating to its NOLs and commitments and contingencies. With respect to accounts receivable, the Company estimates the necessary allowance for doubtful accounts based on both historical and anticipated trends of payment history and the ability of the customer to fulfill its obligations. For inventory, the Company evaluates both current and anticipated sales prices of its products to determine if a write down of inventory to net realizable value is necessary. In determining the Company’s valuation allowance for its deferred tax assets, the Company assesses its ability to generate taxable income in the future. The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results. Currently the Company purchases virgin hydrochlorofluorocarbon (“HCFC”) and hydrofluorocarbon (“HFC”) refrigerants and reclaimable, primarily HCFC, HFC and chlorofluorocarbon (“CFC”), refrigerants from suppliers and its customers. Effective January 1, 1996, the Clean Air Act (the “Act”) prohibited the production of virgin CFC refrigerants and limited the production of virgin HCFC refrigerants. Effective January 2004, the Act further limited the production of virgin HCFC refrigerants and federal regulations were enacted which established production and consumption allowances for HCFC refrigerants which imposed limitations on the importation of certain virgin HCFC refrigerants. Under the Act, production of certain virgin HCFC refrigerants is scheduled to be phased out during the period 2010 through 2020, and production of all virgin HCFC refrigerants is scheduled to be phased out by 2030. In October 2014, the EPA published a final rule providing further reductions in the production and consumption allowances for virgin HCFC refrigerants for the years 2015 through 2019 (the “Final Rule”). In the Final Rule, the EPA established a linear draw down for the production or importation of virgin HCFC-22 that started at approximately To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms or experiences a decline in demand and/or price for refrigerants sold by the Company, the Company could realize reductions in revenue from refrigerant sales, which could have a material adverse effect on its operating results and its financial position. The Company is subject to various legal proceedings. The Company assesses the merit and potential liability associated with each of these proceedings. In addition, the Company estimates potential liability, if any, related to these matters. To the extent that these estimates are not accurate, or circumstances change in the future, the Company could realize liabilities, which could have a material adverse effect on its operating results and its financial position. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less the cost to sell. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (ASU 2017-04), which simplifies the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test that requires a hypothetical purchase price allocation to measure goodwill impairment. Under the new standard, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 does not change the guidance on completing Step 1 of the goodwill impairment test and still allows a company to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. The standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. The Company adopted this standard on January 1, 2017 and has applied its guidance in its impairment assessments. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments." This ASU addresses eight specific cash flow issues with the objective of eliminating the existing diversity in practice. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods therein, with early adoption permitted. We elected to early adopt ASU 2016-15 as of December 31, 2016, and the adoption did not have a material impact on the presentation of the statement of cash flows. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses." This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and for interim periods therein. The Company does not expect the amended standard to have a material impact on the Company’s results of operations. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This guidance involves several aspects of accounting for employee share-based payments including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The Company adopted this ASU on a prospective basis on January 1, 2017. Excess tax benefits and deficiencies are recognized in the consolidated statement of earnings rather than capital in excess of par value of stock. Excess tax benefits within the consolidated statement of cash flows are presented as an operating activity. The impact of the adoption on the Company’s income tax expense or benefit and related cash flows during and after the period of adoption are dependent in part upon grants and vesting of stock-based compensation awards and other factors that are not fully controllable or predicable by the Company, such as the future market price of the Company's common stock, the timing of employee exercises of vested stock options, and the future achievement of performance criteria that affect performance-based awards. The Company adopted this ASU at the beginning of 2017 and during 2017, the impact of this standard reduced the Company’s income tax expense and increased net income by approximately $ 2.4 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. A modified retrospective transition approach is required for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. At a minimum, adoption of ASU 2016-02 will require recording a ROU asset and a lease liability on the Company's consolidated balance sheet; however, the Company is still currently evaluating the impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected. For public business entities, the amendments in ASU 2015-17 are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company elected to early adopt ASU 2015-17 prospectively in the fourth quarter of 2016. As a result, all deferred tax assets and liabilities have been presented as noncurrent on the consolidated balance sheet as of December 31, 2016. There was no impact on its results of operations as a result of the adoption of ASU 2015-17. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”, or ASU 2015-16. This amendment requires the acquirer in a business combination to recognize in the reporting period in which adjustment amounts are determined, any adjustments to provisional amounts that are identified during the measurement period, calculated as if the accounting had been completed at the acquisition date. Prior to the issuance of ASU 2015-16, an acquirer was required to restate prior period financial statements as of the acquisition date for adjustments to provisional amounts. The amendments in ASU 2015-16 are to be applied prospectively upon adoption. The Company adopted ASU 2015-16 in the fourth quarter of 2016. The adoption of the provisions of ASU 2015-16 did not have a material impact on its results of operations or financial position. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 340): Simplifying the Measurement of Inventory.” Under ASU 2015-11, companies utilizing the first-in, first-out or average cost method should measure inventory at the lower of cost or net realizable value, whereas net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for interim and annual reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 did not have a material impact on the Company’s results of operations or financial position. In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)." The new revenue recognition standard provides a five-step analysis to determine when and how revenue is recognized. The core principle of ASU 2014-09 is that an entity should recognize 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. The standard also requires new, expanded disclosures related to the entity’s revenue streams, performance obligations and significant judgments made in applying the standard. This ASU is effective for annual periods beginning after December 15, 2017 and should be applied retrospectively to each reporting period presented or using a modified retrospective application with the cumulative effect recognized at the date of initial application. The Company will adopt this standard on January 1, 2018 using the modified retrospective method. The Company has substantially completed its assessment of its revenue practices. Based on the evaluation performed to date, the Company has concluded that the adoption of this standard will have no impact on our financial position, results of operations or cash flows and will not have a significant impact on our internal controls over financial reporting. The Company is still assessing the impact the adoption of the standard will have on the newly required disclosures, which will be finalized during the first quarter of 2018. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Company's revenues | The Company's revenues are derived from Product and related sales and RefrigerantSide® Services revenues. The revenues for each of these lines are as follows: Years Ended December 31, 2017 2016 2015 (in thousands) Product and related sales $ 136,016 $ 101,344 $ 75,154 RefrigerantSide ® 4,364 4,137 4,568 Total $ 140,380 $ 105,481 $ 79,722 |
Reconciliation of shares used to determine net income per share | The reconciliation of shares used to determine net income per share is as follows (dollars in thousands): Years ended December 31, 2017 2016 2015 Net income $ 11,157 $ 10,637 $ 4,763 Weighted average number of shares - basic 41,764,230 34,104,476 32,546,840 Shares underlying warrants 300,846 Shares underlying options 1,002,613 1,312,434 1,088,413 Weighted average number of shares outstanding diluted 42,766,843 35,416,910 33,936,099 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The valuation methodologies used for the Company's financial instruments measured on a recurring basis at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth in the tables below. (in thousands) As of December 31, 2017 Fair Value Measurements Carrying Fair Value Level 1 Level 2 Level 3 Liabilities: Deferred acquisition cost $ 0 $ 0 $ 0 (in thousands) As of December 31, 2016 Fair Value Measurements Carrying Fair Value Level 1 Level 2 Level 3 Liabilities: Deferred acquisition cost $ 789 $ 789 $ 789 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a rollforward of deferred acquisition costs in 2016 and 2017. (in thousands) Acquisition of Polar 2015 Total Deferred Balance at January 1, 2016 $ 667 $ 1,235 $ 1,902 Payments (667) (1,010) (1,677) Total adjustments included in earnings 564 564 Balance at December, 31, 2016 $ $ 789 $ 789 Payments (789) (789) Total adjustments included in earnings Balance at December 31, 2017 $ $ $ |
Trade accounts receivable - n23
Trade accounts receivable - net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | (in thousands) Beginning Balance Net additions charged to Deductions Ending Balance 2017 $ 365 $ 136 $ 221 $ 722 2016 $ 335 $ 21 $ 9 $ 365 2015 $ 244 $ 99 $ (8) $ 335 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Noncurrent | Inventories, net of reserve, consist of the following: December 31 , 2017 2016 (in thousands) Refrigerant and cylinders $ 22,322 $ 11,168 Packaged refrigerants 150,163 57,433 Total $ 172,485 $ 68,601 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Elements of property, plant and equipment are as follows: December 31 , 2017 2016 Estimated (in thousands) Property, plant and equipment - Land $ 1,255 $ 535 - Land improvements 319 6-10 years - Buildings 1,446 830 25-39 years - Building improvements 3,045 873 25-39 years - Cylinders 13,390 15-30 years - Equipment 23,524 13,423 3-10 years - Equipment under capital lease 315 248 5-7 years - Vehicles 1,612 1,360 3-5 years - Lab and computer equipment, software 3,056 2,652 2-8 years - Furniture &; fixtures 656 289 5-10 years - Leasehold improvements 711 119 3-5 years - Equipment under construction 385 1,654 Subtotal 49,714 21,983 Accumulated depreciation 19,253 14,451 Total $ 30,461 $ 7,532 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following summarizes the (benefit) / provision for income taxes: Years Ended December 31, 2017 2016 2015 (in thousands) Current: Federal $ (3,690) $ 4,981 $ 174 State and local 532 567 2 (3,158) 5,548 176 Deferred: Federal 4,293 949 2,460 State and local (288) 131 308 4,005 1,080 2,768 Expense for income taxes $ 847 $ 6,628 $ 2,944 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the Company's actual tax rate to the U.S. Federal statutory rate is as follows: Years ended December 31, 2017 2016 2015 Income tax rates - Statutory U.S. federal rate 35 % 35 % 34 % - State income taxes, net of federal benefit 4 % 3 % 4 % - Excess tax benefits related to stock compensation (20) % - Effect of 2017 Tax Act (12) % Total 7 % 38 % 38 % |
Schedule of Deferred Tax Assets and Liabilities | The net deferred income tax assets (liabilities) consisted of the following at: December 31, 2017 2016 (in thousands) - Depreciation &; amortization $ (3,665) $ (236) - Reserves for doubtful accounts 115 139 - Inventory reserve 218 304 - Non qualified stock options 409 247 - Net operating losses 1,450 2,078 Total $ (1,473) $ 2,532 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Company's other intangible assets | The Company’s other intangible assets consist of the following: December 31, 2017 2016 (in thousands) Amortization Gross Gross Period Carrying Accumulated Carrying Accumulated (in years) Amount Amortization Net Amount Amortization Net Intangible Assets with determinable lives Patents 5 $ 386 $ 374 $ 12 $ 386 $ 366 $ 20 Covenant Not to Compete 6 10 1,270 475 795 1,270 322 948 Customer Relationships 3 12 31,660 1,288 30,372 2,000 452 1,548 Above Market Leases 13 567 10 557 Trade Name 2 30 30 30 30 Licenses 10 1,000 317 683 1,000 217 783 Totals identifiable intangible assets $ 34,913 $ 2,494 $ 32,419 $ 4,686 $ 1,387 $ 3,299 |
Short-term and long-term debt (
Short-term and long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term and long-term debt | December 31 , 2017 2016 (in thousands) Short-term &; long-term debt Short-term debt: - Revolving credit line and other debt $ 65,152 $ - Long-term debt: current 1,050 199 Subtotal 66,202 199 Long-term debt: - Term Loan Facility 103,950 - Vehicle and equipment loans 39 36 - Capital lease obligations 20 116 - Less: deferred financing costs on term loan (2,851) Subtotal 101,158 152 Total short-term &; long-term debt (1) $ 167,360 $ 351 (1) |
Future minimum lease payments under capital leases | Scheduled future minimum lease payments under capital leases, net of interest, are as follows: Years ended December 31, Amount (in thousands) -2018 $ 82 -2019 31 -2020 6 -2021 3 -2022 0 Subtotal 122 Less interest expense (6) Total $ 116 |
Maturities of long-term debt and capital lease obligations | Scheduled maturities of the Company's long-term debt and capital lease obligations are as follows: Years ended December 31, Amount (in thousands) -2018 $ 1,148 -2019 1,097 -2020 1,059 -2021 1,053 -2022 1,050 Thereafter 99,750 Total $ 105,157 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Rent Expense | Properties Location Annual Lease Expiration Auburn, Washington $ 39,000 8/2018 Baton Rouge, Louisiana $ 23,000 5/2019 Catano, Puerto Rico $ 124,000 12/2020 Champaign, Illinois $ 504,000 12/2018 Charlotte, North Carolina $ 26,000 5/2019 Escondido, California $ 36,000 Month to Month Hampstead, New Hampshire $ 52,000 8/2022 Nashville, Tennessee $ 173,000 3/2018 Long Beach, California $ 26,400 2/2020 Long Island City, New York $ 782,000 7/2018 Ontario, California $ 90,000 12/2018 Pearl River, New York $ 150,000 12/2021 Pottsboro, Texas $ 6,000 8/2017 Riverside, California $ 27,000 Month to Month Smyrna, Georgia $ 446,000 7/2030 Stony Point, New York $ 90,000 6/2021 Tulsa, Oklahoma $ 27,000 12/2017 |
Summarized table of future commitments under operating leases | Years ended December 31, Amount (in thousands) -2018 $ 2,374 -2019 1,183 -2020 1,155 -2021 958 -2022 655 Thereafter 3,943 Total $ 10,268 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Compensation [Abstract] | |
Weighted-average assumptions used in determining fair value of share based awards | The Company determines the fair value of share based awards at the grant date by using the Black-Scholes option-pricing model, and is incorporating the simplified method to compute expected lives of share based awards with the following weighted-average assumptions: Years ended 2017 2016 2015 Assumptions Dividend yield 0 % 0 % 0 % Risk free interest rate 1.97%-2.08 % 0.%-1.0 % 0.83%-1.03 % Expected volatility 44%-46 % 47%-53 % 49%-60 % Expected lives 3 years 3 years 3 years |
Summary of status of company's stock option plan | A summary of the activity for the Company's Plans for the indicated periods is presented below: Stock Option Plan Totals Shares Weighted Outstanding at December 31, 2014 3,280,874 $ 1.98 -Cancelled (132,500) $ 3.72 -Exercised (679,291) $ 1.65 -Granted 164,506 $ 3.28 Outstanding at December 31, 2015 2,633,589 $ 2.06 -Exercised (589,725) $ 2.43 -Granted 1,170,534 $ 3.95 Outstanding at December 31, 2016 3,214,398 $ 2.68 -Exercised (1,545,161) $ 2.27 -Granted 1,400,203 $ 5.72 Outstanding at December 31, 2017 3,069,440 $ 4.28 |
Weighted average contractual life and exercise price | The following is the weighted average contractual life in years and the weighted average exercise price at December 31, 2017 and 2016 of: Number of Weighted Weighted 2017 Options Contractual Life Exercise Price Options outstanding 3,069,440 2.4 years $ 4.28 Options vested 1,308,203 3.0 years $ 3.94 Options unvested 92,000 0.9 years $ 5.76 Number of Weighted Weighted 2016 Options Contractual Life Exercise Price Options outstanding 3,214,398 2.0 years $ 2.68 Options vested 1,191,368 3.0 years $ 3.94 |
Intrinsic value | The intrinsic values of options vested and exercised during the years ended 2017, 2016 and 2015 were as follows : 2017 2016 2015 Intrinsic value of options vested $ 462,369 $ 4,843,774 $ 5,000 Intrinsic value of options exercised $ 8,025,527 $ 1,777,476 $ 1,309,000 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the fair values of the assets acquired and liabilities assumed from the ARI acquisition: Amortization life Fair value Accounts receivable $ 14,668 Other assets 734 Inventories 103,876 Property and equipment 24,179 Customer relationships 144 29,660 Above-market leases 153 567 Goodwill 48,609 Total assets acquired $ 222,293 Accounts payable and accrued expenses $ 3,210 Other current liabilities 10,114 Total liabilities assumed $ 13,324 Total purchase price $ 208,969 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides unaudited pro forma total revenues and results of operations for the 12 months ended December 31, 2017 and 2016 as if ARI had been acquired on January 1, 2016. The unaudited pro forma results reflect certain adjustments related to the acquisitions, such as a step-up in basis in inventory, amortization expense on intangible assets arising from the acquisition, and interest on the acquisition financing. The pro forma results do not include any anticipated cost synergies or other effects of any planned integration. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed at the beginning of 2016, nor are they indicative of the future operating results of the combined companies. 12 Months Ended (unaudited, in thousands, except per share amounts) 2017 2016 Revenues $ 255,701 $ 239,626 Net income $ 23,405 $ 17,109 Net income per share: Basic $ 0.56 $ 0.50 Diluted $ 0.55 $ 0.48 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | (in thousands, except share and per share data) For the Year Ended 2017 Q1 Q2 Q3 Q4 (b) Total (a) Revenues $ 38,830 $ 52,231 $ 24,706 $ 24,613 $ 140,380 Gross profit $ 12,467 $ 17,420 $ 5,070 $ 3,027 $ 37,984 Operating expenses $ 3,074 $ 3,520 $ 3,594 $ 12,664 $ 22,852 Operating income (loss) $ 9,393 $ 13,900 $ 1,476 $ (9,637) $ 15,132 Other (expense) $ (85) $ (61) $ (24) $ (2,958) $ (3,128) Income (loss) before income taxes $ 9,308 $ 13,839 $ 1,452 $ (12,595) $ 12,004 Income tax expense (benefit) $ 3,574 $ 5,314 $ (652) $ (7,389) $ 847 Net income (loss) $ 5,734 $ 8,525 $ 2,104 $ (5,206) $ 11,157 Net income (loss) per common share Basic (a) $ 0.14 $ 0.21 $ 0.05 $ (0.12) $ 0.27 Net income (loss) per common share Diluted (a) $ 0.13 $ 0.20 $ 0.05 $ (0.12) $ 0.26 Weighted average number of shares outstanding Basic 41,507,941 41,567,848 41,869,528 42,216,987 41,764,230 Weighted average number of shares outstanding Diluted 43,503,889 43,550,226 43,463,982 42,216,987 42,766,843 (a) The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. (b) As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. For the Year Ended 2016 Q1 Q2 Q3 Q4 Total (a) Revenues $ 28,167 $ 34,605 $ 34,930 $ 7,779 $ 105,481 Gross profit $ 7,522 $ 10,491 $ 12,040 $ 1,033 $ 31,086 Operating expenses $ 2,503 $ 2,347 $ 4,022 $ 3,267 $ 12,139 Operating income (loss) $ 5,019 $ 8,144 $ 8,018 $ (2,234) $ 18,947 Other Income (expense) $ (271) $ (352) $ (296) $ (763) $ (1,682) Income (loss) before income taxes $ 4,748 $ 7,792 $ 7,722 $ (2,997) $ 17,265 Income tax expense (benefit) $ 1,804 $ 2,962 $ 2,933 $ (1,071) $ 6,628 Net income (loss) $ 2,944 $ 4,830 $ 4,789 $ (1,926) $ 10,637 Net income (loss) per common share Basic $ 0.09 $ 0.15 $ 0.14 $ (0.05) $ 0.31 Net income (loss) per common share Diluted $ 0.09 $ 0.14 $ 0.14 $ (0.05) $ 0.30 Weighted average number of shares outstanding Basic 32,888,659 33,128,518 33,873,479 36,527,250 34,104,476 Weighted average number of shares outstanding Diluted 33,944,876 34,270,337 35,297,585 36,527,250 35,416,910 (a) The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Company's Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Product and related sales | $ 136,016 | $ 101,344 | $ 75,154 | |||||||||||
RefrigerantSide ® Services | 4,364 | 4,137 | 4,568 | |||||||||||
Total | $ 24,613 | $ 24,706 | $ 52,231 | $ 38,830 | $ 7,779 | $ 34,930 | $ 34,605 | $ 28,167 | $ 140,380 | [2] | $ 105,481 | [2] | $ 79,722 | |
[1] | As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. | |||||||||||||
[2] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Reconciliation of Shares Used to Determine Net Income per Share (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Earnings Per Share Disclosure [Line Items] | ||||||||||||||
Net income | $ (5,206) | $ 2,104 | $ 8,525 | $ 5,734 | $ (1,926) | $ 4,789 | $ 4,830 | $ 2,944 | $ 11,157 | [2] | $ 10,637 | [2] | $ 4,763 | |
Weighted average number of shares - basic | 42,216,987 | 41,869,528 | 41,567,848 | 41,507,941 | 36,527,250 | 33,873,479 | 33,128,518 | 32,888,659 | 41,764,230 | [2] | 34,104,476 | [2] | 32,546,840 | |
Weighted average number of shares outstanding - diluted | 42,216,987 | 43,463,982 | 43,550,226 | 43,503,889 | 36,527,250 | 35,297,585 | 34,270,337 | 33,944,876 | 42,766,843 | [2] | 35,416,910 | [2] | 33,936,099 | |
Warrants | ||||||||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||||||||
Shares underlying | 0 | 0 | 300,846 | |||||||||||
Options | ||||||||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||||||||
Shares underlying | 1,002,613 | 1,312,434 | 1,088,413 | |||||||||||
[1] | As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. | |||||||||||||
[2] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Oct. 10, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Significant Accounting Policies [Line Items] | |||||
Concentration risk, customer | two customers each accounted for 10% or more of the Company’s revenues | two customers each accounted for 10% or more of the Company’s revenues | two customers each accounted for 10% or more of the Company’s revenues | ||
Options and warrants excluded from the calculation of diluted shares | 0 | 73,034 | 106,290 | ||
Production and importation permission description | 22 million pounds in 2015 and was reduced by approximately 4.5 million pounds each year ending at zero in 2020. | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 34.00% | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 1.4 | ||||
Payables to Customers | 9.8 | ||||
Business Combination, Consideration Transferred, Total | $ 209 | ||||
Management Fees Revenue | 2.4 | ||||
PNC Bank [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Proceeds from Lines of Credit | 80 | 105 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 150 | 80 | |||
Debt Instrument, Face Amount | 65 | ||||
Term Loan [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Debt Instrument, Face Amount | $ 105 | ||||
Scenario, Plan [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Accounting Standards Update 2016-09 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 2.4 | ||||
Sales Revenue, Net [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Aggregate percentage of revenue the from customers accounted for more than 10% | 33.00% | 30.00% | 33.00% | ||
Customer | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts receivable, net | $ 2.7 |
Fair Value (Detail)
Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Acquisition Cost Carrying Amount | $ 0 | $ 789 |
Deferred Acquisition Cost Fair Value | 0 | 789 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Acquisition Cost Fair Value | $ 0 | $ 789 |
Fair Value (Detail 1)
Fair Value (Detail 1) - Deferred Acquisition Costs [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Begining Balance | $ 789 | $ 1,902 |
Payments | (789) | (1,677) |
Total adjustments included in earnings | 0 | 564 |
Ending Balance | 0 | 789 |
Polar Technologies [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Begining Balance | 0 | 667 |
Payments | 0 | (667) |
Total adjustments included in earnings | 0 | 0 |
Ending Balance | 0 | 0 |
CCS [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Begining Balance | 789 | 1,235 |
Payments | (789) | (1,010) |
Total adjustments included in earnings | 0 | 564 |
Ending Balance | $ 0 | $ 789 |
Trade accounts receivable - n38
Trade accounts receivable - net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | $ 365 | $ 335 | $ 244 |
Net additions charged to Operations | 136 | 21 | 99 |
Deductions and Other | 221 | 9 | (8) |
Ending Balance | $ 722 | $ 365 | $ 335 |
Trade accounts receivable - n39
Trade accounts receivable - net - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Line Items] | |||
Trade accounts receivable are net of reserves for doubtful accounts | $ 0.7 | $ 0.4 | $ 0.3 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Inventories | $ 172,485 | $ 68,601 |
Refrigerant and cylinders | ||
Inventory [Line Items] | ||
Inventories | 22,322 | 11,168 |
Packaged refrigerants | ||
Inventory [Line Items] | ||
Inventories | $ 150,163 | $ 57,433 |
Property, plant and equipment41
Property, plant and equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 49,714 | $ 21,983 |
Accumulated depreciation | 19,253 | 14,451 |
Total | 30,461 | 7,532 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,255 | 535 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,446 | 830 |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,045 | 873 |
Building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 23,524 | 13,423 |
Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment under capital lease | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 315 | 248 |
Equipment under capital lease | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Equipment under capital lease | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,612 | 1,360 |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Lab and computer equipment, software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,056 | 2,652 |
Lab and computer equipment, software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Lab and computer equipment, software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Furniture & fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 656 | 289 |
Furniture & fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Furniture & fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 711 | 119 |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 385 | 1,654 |
Cylinders | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 13,390 | 0 |
Cylinders | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Cylinders | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 319 | $ 0 |
Land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 6 years |
Property, plant and equipment -
Property, plant and equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 2.3 | $ 1.7 | $ 1.6 |
Cost of Goods Sold, Depreciation | $ 2 | $ 1.7 | $ 1.5 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Current: | ||||||||||||||
Federal | $ (3,690) | $ 4,981 | $ 174 | |||||||||||
State and local | 532 | 567 | 2 | |||||||||||
Current Income Tax Expense (Benefit), Total | (3,158) | 5,548 | 176 | |||||||||||
Deferred: | ||||||||||||||
Federal | 4,293 | 949 | 2,460 | |||||||||||
State and local | (288) | 131 | 308 | |||||||||||
Deferred Income Tax Expense (Benefit) | 4,005 | 1,080 | 2,768 | |||||||||||
Expense for income taxes | $ (7,389) | $ (652) | $ 5,314 | $ 3,574 | $ (1,071) | $ 2,933 | $ 2,962 | $ 1,804 | $ 847 | [2] | $ 6,628 | [2] | $ 2,944 | |
[1] | As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. | |||||||||||||
[2] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Reconciliation of Company's Act
Reconciliation of Company's Actual Tax Rate to U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax rates | |||
- Statutory U.S. federal rate | 35.00% | 35.00% | 34.00% |
- State income taxes, net of federal benefit | 4.00% | 3.00% | 4.00% |
- Excess tax benefits related to stock compensation | (20.00%) | 0.00% | 0.00% |
- Effect of 2017 Tax Act | (12.00%) | 0.00% | 0.00% |
Total | 7.00% | 38.00% | 38.00% |
Elements of Deferred Income Tax
Elements of Deferred Income Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets (liabilities) | ||
- Depreciation & amortization | $ (3,665) | $ (236) |
- Reserves for doubtful accounts | 115 | 139 |
- Inventory reserve | 218 | 304 |
- Non qualified stock options | 409 | 247 |
- Net operating losses | 1,450 | 2,078 |
Total | $ (1,473) | $ 2,532 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Income Tax [Line Items] | |||||||||||||||
Operating Loss Carry forwards Expiration Period | 2,024 | ||||||||||||||
Income Tax Expense (Benefit) | $ (7,389) | [1] | $ (652) | $ 5,314 | $ 3,574 | $ (1,071) | $ 2,933 | $ 2,962 | $ 1,804 | $ 847 | [2] | $ 6,628 | [2] | $ 2,944 | |
Operating Loss Carryforwards | 5,400 | $ 5,400 | |||||||||||||
Operating Loss Carryforwards, Limitations on Use | All of the Companys remaining $4.1 million of NOLs are subject to annual limitations of $1.3 million. | ||||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 34.00% | ||||||||||||
Scenario, Plan [Member] | |||||||||||||||
Income Tax [Line Items] | |||||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||||||||||||
State and Local Jurisdiction [Member] | |||||||||||||||
Income Tax [Line Items] | |||||||||||||||
Operating Loss Carryforwards | $ 2,600 | $ 2,600 | |||||||||||||
[1] | As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. | ||||||||||||||
[2] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |
Goodwill and intangible asset47
Goodwill and intangible assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||
GrossCarryingAmount | $ 34,913 | $ 4,686 |
AccumulatedAmortization | 2,494 | 1,387 |
Net | $ 32,419 | 3,299 |
Licenses [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 10 years | |
GrossCarryingAmount | $ 1,000 | 1,000 |
AccumulatedAmortization | 317 | 217 |
Net | $ 683 | 783 |
Patents [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 5 years | |
GrossCarryingAmount | $ 386 | 386 |
AccumulatedAmortization | 374 | 366 |
Net | 12 | 20 |
Covenant Not to Compete [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
GrossCarryingAmount | 1,270 | 1,270 |
AccumulatedAmortization | 475 | 322 |
Net | $ 795 | 948 |
Covenant Not to Compete [Member] | Maximum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 10 years | |
Covenant Not to Compete [Member] | Minimum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 6 years | |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
GrossCarryingAmount | $ 31,660 | 2,000 |
AccumulatedAmortization | 1,288 | 452 |
Net | $ 30,372 | 1,548 |
Customer Relationships [Member] | Maximum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 12 years | |
Customer Relationships [Member] | Minimum [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 3 years | |
Above Market Leases [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 13 years | |
GrossCarryingAmount | $ 567 | 0 |
AccumulatedAmortization | 10 | 0 |
Net | $ 557 | 0 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization Period(in years) | 2 years | |
GrossCarryingAmount | $ 30 | 30 |
AccumulatedAmortization | 30 | 30 |
Net | $ 0 | $ 0 |
Goodwill and intangible asset48
Goodwill and intangible assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 10, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 49,464 | $ 856 | $ 48,609 | |
Amortization of Intangible Assets | 1,107 | $ 488 | $ 512 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 3,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 17,400 | |||
Polar Technologies, LLC [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 400 | |||
Supplier [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 400 | |||
Airgas Refrigerants, Inc. [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 48,600 |
Short-term and long-term debt49
Short-term and long-term debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term debt: | |||
- Revolving credit line and other debt | $ 65,152 | $ 0 | |
- Long-term debt: current | 1,050 | 199 | |
Subtotal | 66,202 | 199 | |
Long-term debt: | |||
- Term Loan Facility | 103,950 | 0 | |
- Vehicle and equipment loans | 39 | 36 | |
- Capital lease obligations | 20 | 116 | |
- Less: deferred financing costs on term loan | (2,851) | 0 | |
Subtotal | 101,158 | 152 | |
Total short-term & long-term debt | [1] | $ 167,360 | $ 351 |
[1] | Long-term debt is net of deferred financing costs. |
Future minimum lease payments u
Future minimum lease payments under capital leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Future Minimum Lease Payments Under Capital Leases [Line Items] | |
(2,018) | $ 82 |
(2,019) | 31 |
(2,020) | 6 |
(2,021) | 3 |
(2,022) | 0 |
Subtotal | 122 |
Less interest expense | (6) |
Total | $ 116 |
Maturities of long-term debt an
Maturities of long-term debt and capital lease obligations (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
(2,018) | $ 1,148 |
(2,019) | 1,097 |
(2,020) | 1,059 |
(2,021) | 1,053 |
(2,022) | 1,050 |
Thereafter | 99,750 |
Total | $ 105,157 |
Short-term and long-term debt -
Short-term and long-term debt - Additional Information (Detail) - USD ($) | Oct. 10, 2017 | Jun. 01, 2017 | Jun. 01, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2016 | Jun. 22, 2012 |
Capital leased assets gross | $ 200,000 | |||||||
Letters of Credit Outstanding, Amount | 130,000 | $ 130,000 | ||||||
Repayments Of Long Term Debt | 172,000 | $ 4,349,000 | $ 328,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 64,300,000 | |||||||
Revolving Credit Facility | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 46,000,000 | |||||||
Minimum | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | |||||||
Maximum | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||||||
Vehicle and Equipment Loans | Minimum | ||||||||
Credit facility effective rate of interest | 0.00% | |||||||
Vehicle and Equipment Loans | Maximum | ||||||||
Credit facility effective rate of interest | 6.70% | |||||||
Term Loan | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | |||||||
Interest rate description under PNC facility | Interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to domestic rate loans, the sum of (i) a rate per annum equal to the higher of (1) the base commercial lending rate of PNC, (2) the federal funds open rate plus 0.5% and (3) the daily LIBOR plus 1.0%, plus (ii) between 0.50% and 1.00% depending on average quarterly undrawn availability and (B) with respect to Eurodollar rate loans, the sum of the Eurodollar rate plus between 1.50% and 2.00% depending on average quarterly undrawn availability. | |||||||
Debt Instrument, Maturity Date | Oct. 10, 2023 | |||||||
Debt Instrument, Face Amount | $ 105,000,000 | |||||||
Debt Instrument, Payment Terms | Principal payments on the Term Loans are required on a quarterly basis, commencing with the quarter ending March 31, 2018, in the amount of 1% of the original principal amount of the outstanding Term Loans per annum. The Term Loan Facility also requires annual payments of up to 50% of Excess Cash Flow (as defined in the Term Loan Facility) depending upon the Companys Total Leverage Ratio (as defined in the Term Loan Facility) for the applicable year. The Term Loan Facility also requires mandatory prepayments of the Term Loans in the event of certain asset dispositions, debt issuances, and casualty and condemnation events. The Term Loans may be prepaid at the option of the Borrowers at par in an amount up to $30 million. Additional prepayments are permitted after the first anniversary of the closing date subject to a prepayment premium of 3% in year two, 1% in year three and zero in year four and thereafter. | |||||||
Term Loan | Eurodollar | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.25% | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||||||
PNC Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000,000 | $ 80,000,000 | ||||||
Debt Instrument, Face Amount | 65,000,000 | |||||||
PNC Bank [Member] | Letter of Credit [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | |||||||
PNC Bank [Member] | Swing Line Loan [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||||||
Busey Bank | ||||||||
Principal balance of this mortgage note | $ 0 | |||||||
Busey Bank | Mortgage Note | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 855,000 | |||||||
Credit facility effective rate of interest | 4.00% | |||||||
Line of Credit Facility, Expiration Date | Jun. 1, 2017 | |||||||
Repayments Of Long Term Debt | $ 15,815 | |||||||
Line of Credit Facility, Expiration Period | 60 months |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 14, 2016 | Dec. 08, 2016 | Jul. 31, 2016 | Jan. 31, 2016 | Jun. 11, 2014 | Mar. 07, 2011 | Mar. 04, 2011 | Jul. 07, 2010 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders Equity [Line Items] | |||||||||||
Common Stock, Shares, Issued | 42,398,140 | 41,465,820 | |||||||||
Common Stock, Par Or Stated Value Per Share | $ 0.01 | $ 0.01 | |||||||||
Proceeds From Issuance Of Common Stock | $ 807 | $ 51,060 | $ 460 | ||||||||
Common Stock | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Common Stock, Shares, Issued | 2,737,500 | ||||||||||
Stock Unit | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Common Stock, Shares, Issued | 2,737,500 | ||||||||||
2010 Offering | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Common Stock, Shares, Issued | 1,368,750 | ||||||||||
Common Stock, Par Or Stated Value Per Share | $ 2 | ||||||||||
Proceeds from Issuance or Sale of Equity, Total | $ 4,900 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.60 | $ 0.60 | $ 2.60 | ||||||||
Adjustment of Warrants Granted for Services | $ 1,300 | ||||||||||
Class Of Warrant Or Right Repurchase During Period | 150,000 | ||||||||||
Class Of Warrant Or Right Issued Unit During Period | 7,498 | 1,161,252 | 1,218,750 | ||||||||
Underwritten Offering | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Common Stock, Shares, Issued | 6,428,571 | ||||||||||
Common Stock, Par Or Stated Value Per Share | $ 0.01 | ||||||||||
Proceeds From Issuance Of Common Stock | $ 48,400 | ||||||||||
Additional Offering Expenses | 3,300 | ||||||||||
Underwriters | |||||||||||
Stockholders Equity [Line Items] | |||||||||||
Proceeds From Issuance Of Common Stock | $ 51,700 | ||||||||||
Stock Issued During Period, Shares, New Issues | 6,428,571 | 7,392,856 | |||||||||
Share Price | $ 7 | ||||||||||
Purchase Of Additional Common Stock | 964,285 | 964,285 |
Commitments and contingencies54
Commitments and contingencies (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Auburn, Washington | |
Rent Expense [Line Items] | |
Rent expense | $ 39,000 |
Lease Expiration Date | Aug. 31, 2018 |
Baton Rouge, Louisiana | |
Rent Expense [Line Items] | |
Rent expense | $ 23,000 |
Lease Expiration Date | May 31, 2019 |
Champaign, Illinois | |
Rent Expense [Line Items] | |
Rent expense | $ 504,000 |
Lease Expiration Date | Dec. 31, 2018 |
Charlotte, North Carolina | |
Rent Expense [Line Items] | |
Rent expense | $ 26,000 |
Lease Expiration Date | May 31, 2019 |
Escondido, California | |
Rent Expense [Line Items] | |
Rent expense | $ 36,000 |
Lease Expiration Period Description | Month to Month |
Hampstead, New Hampshire | |
Rent Expense [Line Items] | |
Rent expense | $ 52,000 |
Lease Expiration Date | Aug. 31, 2022 |
Nashville, Tennessee | |
Rent Expense [Line Items] | |
Rent expense | $ 173,000 |
Lease Expiration Date | Mar. 31, 2018 |
Ontario, California | |
Rent Expense [Line Items] | |
Rent expense | $ 90,000 |
Lease Expiration Date | Dec. 31, 2018 |
Pearl River, New York | |
Rent Expense [Line Items] | |
Rent expense | $ 150,000 |
Lease Expiration Date | Dec. 31, 2021 |
Pottsboro, Texas | |
Rent Expense [Line Items] | |
Rent expense | $ 6,000 |
Lease Expiration Date | Aug. 31, 2017 |
Catano, Puerto Rico | |
Rent Expense [Line Items] | |
Rent expense | $ 124,000 |
Lease Expiration Date | Dec. 31, 2020 |
Stony Point, New York | |
Rent Expense [Line Items] | |
Rent expense | $ 90,000 |
Lease Expiration Date | Jun. 30, 2021 |
Tulsa, Oklahoma | |
Rent Expense [Line Items] | |
Rent expense | $ 27,000 |
Lease Expiration Date | Dec. 31, 2017 |
Long Beach, California [Member] | |
Rent Expense [Line Items] | |
Rent expense | $ 26,400 |
Lease Expiration Date | Feb. 29, 2020 |
Long Island City, New York [Member] | |
Rent Expense [Line Items] | |
Rent expense | $ 782,000 |
Lease Expiration Date | Jul. 31, 2018 |
Riverside, California [Member] | |
Rent Expense [Line Items] | |
Rent expense | $ 27,000 |
Lease Expiration Period Description | Month to Month |
Smyrna, Georgia [Member] | |
Rent Expense [Line Items] | |
Rent expense | $ 446,000 |
Lease Expiration Date | Jul. 31, 2030 |
Future Commitments under Operat
Future Commitments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Future Commitments Under Operating Leases [Line Items] | |
(2,018) | $ 2,374 |
(2,019) | 1,183 |
(2,020) | 1,155 |
(2,021) | 958 |
(2,022) | 655 |
Thereafter | 3,943 |
Total | $ 10,268 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense | $ 1,700,000 | $ 1,400,000 | $ 1,200,000 |
Accrual for Environmental Loss Contingencies | $ 90,000 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Assumptions Used in Determining Fair Value of Share Based Awards at Grant Date by Using Black-Scholes Option Pricing Model (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected lives | 3 years | 3 years | 3 years |
Minimum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Risk free interest rate | 1.97% | 0.00% | 0.83% |
Expected volatility | 44.00% | 47.00% | 49.00% |
Maximum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Risk free interest rate | 2.08% | 1.00% | 1.03% |
Expected volatility | 46.00% | 53.00% | 60.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Status of Company's Stock Option Plan (Detail) - Stock Option Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Outstanding at beginning of period | 3,214,398 | 2,633,589 | 3,280,874 |
-Cancelled | (132,500) | ||
-Exercised | (1,545,161) | (589,725) | (679,291) |
-Granted | 1,400,203 | 1,170,534 | 164,506 |
Outstanding at end of period | 3,069,440 | 3,214,398 | 2,633,589 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 2.68 | $ 2.06 | $ 1.98 |
-Cancelled | 3.72 | ||
-Exercised | 2.27 | 2.43 | 1.65 |
-Granted | 5.72 | 3.95 | 3.28 |
Outstanding at end of period | $ 4.28 | $ 2.68 | $ 2.06 |
Share-Based Compensation - We59
Share-Based Compensation - Weighted Average Contractual Life and Exercise Price (Detail) - Stock Option Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | ||
Options outstanding | 3,069,440 | 3,214,398 |
Options vested | 1,308,203 | 1,191,368 |
Options unvested | 92,000 | |
Weighted Average Remaining Contractual Life | ||
Options outstanding | 2 years 4 months 24 days | 2 years |
Options vested | 3 years | 3 years |
Options unvested | 10 months 24 days | |
Weighted Average Exercise Price | ||
Options outstanding | $ 4.28 | $ 2.68 |
Options vested | 3.94 | $ 3.94 |
Options unvested | $ 5.76 |
Share-Based Compensation - Intr
Share-Based Compensation - Intrinsic Value (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items] | |||
Intrinsic value of options vested | $ 462,369 | $ 4,843,774 | $ 5,000 |
Intrinsic value of options exercised | $ 8,025,527 | $ 1,777,476 | $ 1,309,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | Sep. 10, 2004 | Sep. 17, 2014 | Aug. 27, 2008 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share based compensation expense | $ 1,500,000 | $ 600,000 | $ 200,000 | |||
Issuance of stock option to purchase stock | 6,000,000 | |||||
Common stock reserved for issuance | 2,259,130 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 6,236 | 17,148 | 9,835 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 5,500,000 | $ 17,100,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value, Nonvested | $ 0 | $ 0 | ||||
2004 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 2,500,000 | |||||
Plan expiration date | Sep. 10, 2014 | |||||
2008 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Plan expiration date | Aug. 27, 2018 | |||||
2014 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 3,000,000 | |||||
Share based compensation arrangement by share based payment award percentage of fair market Person holding more then 10% voting stock | 110.00% | |||||
Stock Option Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Options granted | 1,400,203 | 1,170,534 | 164,506 | |||
2014 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Plan expiration date | Sep. 17, 2024 | |||||
2008 Stock Incentive Plan | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Common stock reserved for issuance | 3,000,000 | |||||
Share based compensation arrangement by share based payment award percentage of fair market Person holding more then 10% voting stock | 110.00% |
Acquisitions (BDO) (Detail)
Acquisitions (BDO) (Detail) - USD ($) $ in Thousands | Oct. 10, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 16, 2015 |
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 14,668 | |||
Other assets | 734 | |||
Inventories | 103,876 | |||
Property and equipment | 24,179 | $ 1,600 | ||
Customer relationships | 29,660 | |||
Above-market leases | 567 | |||
Goodwill | 48,609 | $ 49,464 | $ 856 | |
Total assets acquired | 222,293 | |||
Accounts payable and accrued expenses | 3,210 | |||
Other current liabilities | 10,114 | |||
Total liabilities assumed | 13,324 | |||
Total purchase price | $ 208,969 | |||
Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 153 months | |||
Above Market Leases [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 144 months |
Acquisitions - Business Pro For
Acquisitions - Business Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 255,701 | $ 239,626 |
Net income | $ 23,405 | $ 17,109 |
Net income per share: Basic | $ 0.56 | $ 0.50 |
Net income per share: Diluted | $ 0.55 | $ 0.48 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Oct. 10, 2017 | Jan. 16, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2016 | Jun. 22, 2012 |
Business Acquisition Purchase Price Allocation Description | The purchase price for this acquisition was $2.4 million cash paid at closing, the assumption of a liability of $20,000, and a maximum additional $3.0 million earn-out. | ||||||
Tangible assets | $ 24,179,000 | $ 1,600,000 | |||||
Intangible assets | 1,600,000 | ||||||
Goodwill | 2,300,000 | $ 48,600,000 | |||||
Business Combination, Consideration Transferred, Total | 209,000,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 3,000,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 1,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 208,969,000 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | 1,900,000 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 800,000 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 100,000 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 2,300,000 | 48,600,000 | |||||
ProForma PreTax Losses | 14,800,000 | ||||||
Business Acquisition, Pro Forma Revenue | 255,701,000 | $ 239,626,000 | |||||
PNC Bank [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | 80,000,000 | |||||
Proceeds from Lines of Credit | $ 80,000,000 | 105,000,000 | |||||
Minimum [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 4,400,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | ||||||
Maximum [Member] | |||||||
Allocated Share Based Compensation Expense | 3,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | $ 5,400,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | ||||||
Polar Technologies [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | $ 2,400,000 | ||||||
Airgas Refrigerants, Inc. [Member] | |||||||
Business Acquisition, Pro Forma Revenue | 1,500,000 | ||||||
Business Combination, Acquisition Related Costs | $ 6,300,000 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | [2] | Dec. 31, 2016 | [2] | Dec. 31, 2015 | ||||
Revenues | $ 24,613 | $ 24,706 | $ 52,231 | $ 38,830 | $ 7,779 | $ 34,930 | $ 34,605 | $ 28,167 | $ 140,380 | $ 105,481 | $ 79,722 | ||||||
Gross profit | 3,027 | 5,070 | 17,420 | 12,467 | 1,033 | 12,040 | 10,491 | 7,522 | 37,984 | 31,086 | 18,489 | ||||||
Operating expenses | 12,664 | 3,594 | 3,520 | 3,074 | 3,267 | 4,022 | 2,347 | 2,503 | 22,852 | 12,139 | 10,308 | ||||||
Operating income (loss) | (9,637) | 1,476 | 13,900 | 9,393 | (2,234) | 8,018 | 8,144 | 5,019 | 15,132 | 18,947 | 8,181 | ||||||
Other (expense) | (2,958) | (24) | (61) | (85) | (763) | (296) | (352) | (271) | (3,128) | (1,682) | (474) | ||||||
Income (loss) before income taxes | (12,595) | 1,452 | 13,839 | 9,308 | (2,997) | 7,722 | 7,792 | 4,748 | 12,004 | 17,265 | 7,707 | ||||||
Income tax expense (benefit) | (7,389) | (652) | 5,314 | 3,574 | (1,071) | 2,933 | 2,962 | 1,804 | 847 | 6,628 | 2,944 | ||||||
Net income (loss) | $ (5,206) | $ 2,104 | $ 8,525 | $ 5,734 | $ (1,926) | $ 4,789 | $ 4,830 | $ 2,944 | $ 11,157 | $ 10,637 | $ 4,763 | ||||||
Net income (loss) per common share - Basic | $ (0.12) | [2] | $ 0.05 | [2] | $ 0.21 | [2] | $ 0.14 | [2] | $ (0.05) | $ 0.14 | $ 0.15 | $ 0.09 | $ 0.27 | $ 0.31 | $ 0.15 | ||
Net income (loss) per common share - Diluted | $ (0.12) | [2] | $ 0.05 | [2] | $ 0.20 | [2] | $ 0.13 | [2] | $ (0.05) | $ 0.14 | $ 0.14 | $ 0.09 | $ 0.26 | $ 0.3 | $ 0.14 | ||
Weighted average number of shares outstanding - Basic | 42,216,987 | 41,869,528 | 41,567,848 | 41,507,941 | 36,527,250 | 33,873,479 | 33,128,518 | 32,888,659 | 41,764,230 | 34,104,476 | 32,546,840 | ||||||
Weighted average number of shares outstanding - Diluted | 42,216,987 | 43,463,982 | 43,550,226 | 43,503,889 | 36,527,250 | 35,297,585 | 34,270,337 | 33,944,876 | 42,766,843 | 35,416,910 | 33,936,099 | ||||||
[1] | As discussed previously, the fourth quarter 2017 results include the results of ARI subsequent to the acquisition on October 10, 2017. | ||||||||||||||||
[2] | The sum of the net earnings per share may not add up to the full year amount due to rounding and because the quarterly calculations are based on varying numbers of shares outstanding. |